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Ad industry says draft federal privacy legislation falls short

Julie Rubash, Chief Privacy Counsel
June 13, 2022

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USA

Ad Industry Says Draft Federal Privacy Legislation Falls Short

In a press release issued by Privacy for America, a coalition that includes the American Association of Advertising Agencies, Association of National Advertisers, Digital Advertising Alliance, Interactive Advertising Bureau, and Network Advertising Initiative, expressed support for a bipartisan federal data privacy bill but said the recent draft bill “falls short in terms of protecting responsible data use”.

The press release did not provide a detailed analysis of specific concerns with the bill, but it emphasized the importance of preserving (and not undermining) responsible uses of data that expand the availability of content and deliver other benefits to consumers.

WHY IT MATTERS

The press release refers to the discussion draft released earlier this month by a bipartisan group of U.S. representatives and senators that would implement “The American Data Privacy and Protection Act”.

The bill, if passed, would provide consumers nationwide with the means to opt out of targeted advertising and an obligation to obtain express consent for processing of sensitive data, which is broadly defined to include, among other categories, “information revealing online activities over time and across third party online services”.

The U.S. Chamber of Commerce also reportedly opposes the draft legislation, largely due to the bill’s preemption of state laws and right of individuals to sue. A hearing on the draft legislation is scheduled for Tuesday, June 14 in the House Committee on Energy & Commerce.

California Privacy Protection Agency Authorizes Initiation of Formal Rulemaking

In a June 8 board meeting, the California Privacy Protection Agency (CPPA) voted to approve draft proposed regulations pursuant to the California Privacy Rights Act (CPRA) and delegate authority to the Executive Director, Ashkan Soltani, to take steps to begin the formal rulemaking process. 

WHY IT MATTERS

The rulemaking process will begin with a 45-day public comment period, which may or may not be followed by additional changes and comment periods. Based on this timing, it is likely that regulations will be finalized in late Q3 or Q4.

The draft regulations have reportedly received opposition from the Association of National Advertisers based on an assessment that the regulations go beyond the CPRA and, in some cases, contradict it, for example, by mandating adherence to global privacy controls rather than giving businesses an option.  

GLOBAL

Human Rights Expert Dufresne Nominated as Privacy Commissioner of Canada

Canada Prime Minister Trudeau nominated Philippe Dufresne to replace Daniel Therrien as Canada’s Privacy Commissioner after expiration of Therrien’s 7-year term.

Dufresne had represented the Canadian Human Rights Commission as senior general counsel in several human rights and constitutional cases.

The nomination will need to be approved by resolution of both Houses of Parliament and confirmed by the Governor in Council before Dufresne can be appointed to the position. In the meantime, Information Commissioner Caroline Maynard has been appointed Interim Privacy Commissioner of Canada. 

WHY IT MATTERS

Former Privacy Commissioner Therrien applauded Quebec’s Bill 64, which was passed in September 2021, and was pushing for similar privacy legislation at the federal level, including by  recently issuing key recommendations for a new federal private sector privacy law to enable digital innovation while recognizing privacy as a fundamental human right.

It’s unclear whether Dufresne will adopt similar recommendations or advocate to take federal privacy legislation in a different direction.

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A Little Privacy, Please weekly recaps are provided for general, informational purposes only, do not constitute legal advice, and should not be relied upon for legal decision-making. Please consult an attorney to determine how legal updates may impact you or your business.

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