US lawmakers strike deal on data privacy legislation

WASHINGTON (Reuters) -Two key U.S. lawmakers said on Sunday they struck a deal on draft bipartisan data privacy legislation that would restrict consumer data that technology companies can collect and give Americans the power to prevent selling of personal information or compel its deletion.

The agreement between Democratic Senator Maria Cantwell, who chairs the Commerce Committee, and Representative Cathy McMorris Rodgers, Republican chair of the House Energy and Commerce Committee, would give individuals control over use of their personal information and require disclosure if data has been transferred to foreign adversaries.

Congress has been debating online privacy protections since at least 2019 amid concerns about use of data by social media companies including Meta’s Facebook, Alphabet’s Google and ByteDance-owned TikTok, but have been unable to reach agreement.

In a joint statement, the lawmakers said the plan gives the Federal Trade Commission and state attorneys general broad authority to oversee consumer privacy issues and establish “robust enforcement mechanisms to hold violators accountable, including a private right of action for individuals.”

The statement added: “This bipartisan, bicameral draft legislation is the best opportunity we’ve had in decades to establish a national data privacy and security standard that gives people the right to control their personal information.”

It is the culmination of years of effort in both the Senate and the House of Representatives, the lawmakers said. “It strikes a meaningful balance on issues that are critical to moving comprehensive data privacy legislation through Congress.”

The measure would allow people to opt out of data processing if a company changes its privacy policy. It requires “affirmative express consent before sensitive data can be transferred to a third party.”

Consumers could sue “bad actors who violate their privacy rights – and recover money for damages when they’ve been harmed” and would stop “companies from using people’s personal information to discriminate against them,” the statement said.

The bill would require “annual reviews of algorithms to ensure they do not put individuals, including our youth, at risk of harm, including discrimination.”

(Reporting by David Shepardson in WashingtonEditing by Bill Berkrot and Matthew Lewis)