The word is out that data privacy will be a key issue in President Obama’s State of the Union address next week (Jan. 20). This week, the president met with the Federal Trade Commission to give a preview of the new data privacy initiatives he plans to introduce. The anticipated legislation includes the Personal Data Notification and Protection Act, and the Student Data Privacy Act. The overall aim of the president’s proposed legislation is to tackle identity theft as well as protect student and consumer privacy at a federal level.
Everyone wants to know how the president’s proposed initiatives will impact businesses. But we don’t have to wait until next week since numerous commentators have already shared details of the president’s plan to tackle these timely issues.
The Personal Data Notification and Protection Act “would demand a single, national standard requiring companies to inform their customers within 30 days of discovering their data has been hacked,” according to the New York Times. In the president’s meeting with the FTC commissioners, he said that the current patchwork of state laws are a costly burden to companies and fail to protect Americans.
The president also would like to codify the 2012 Consumer Privacy Bill of Rights in 45 days, among other privacy protection measures.
President Obama wants privacy regulated by the federal government as opposed to individual state governments, which can vary significantly in approach. Compliance complications can arise when state governments regulate privacy since it requires companies to comply with a myriad of differing state laws, which can cause confusion.
However, some are concerned that such legislation could be too restrictive and stifle innovation.