{"id":4044,"date":"2022-07-26T18:24:54","date_gmt":"2022-07-26T18:24:54","guid":{"rendered":"https:\/\/2024.thenexus.today\/index.php\/2022\/07\/26\/what-about-the-elephant\/"},"modified":"2022-07-26T18:24:54","modified_gmt":"2022-07-26T18:24:54","slug":"what-about-the-elephant","status":"publish","type":"post","link":"https:\/\/2024.thenexus.today\/index.php\/2022\/07\/26\/what-about-the-elephant\/","title":{"rendered":"ADPPA Advances. But what about the elephant? Federal Privacy Legislation Update, July 26"},"content":{"rendered":"<p>As expected, the House Energy &amp; Commerce Committee advanced the bipartisan, bicameral American Data Protection and Privacy Act (ADPPA) on a 53-2 vote. It&#8217;s the first time this century a consumer privacy protection bill has ever made it out of committee in Congress, so congrats to all involved! \u00a0<\/p>\n<p>ADPPA&#8217;s next step is a vote by the full House. \u00a0It&#8217;s not currently on the House floor schedule, and Congress takes most of August off, so it probably won&#8217;t happen until mid-September. \u00a0<a href=\"https:\/\/techpolicy.press\/the-sunday-show-prospects-for-the-american-data-privacy-and-protection-act\/\">The Sunday Show: Prospects for the American Data Privacy and Protection Act<\/a>, a discussion with Nora Benavidez of Free Press, Justin Brookman of Consumer Reports, and Justin Hendrix, has some good perspectives on the current status and next steps.<\/p>\n<p>But even though the bill has strong bipartisan support, it&#8217;s still far from a sure thing. The intense debate about whether ADPPA will preempt state laws has gotten most of the attention, but as Tonya Riley reports in <a href=\"https:\/\/cyberscoop.com\/privacy-data-brokers-house-ftc-commerce\">Federal privacy legislation progresses, but concerns about data brokers loom<\/a> on <em>Cyberscoop, <\/em>that&#8217;s far from the only issue.<\/p>\n<blockquote><p>\u201cThe bill before us has a major loophole that could allow law enforcement to access private data to go after women,\u201d said Rep. Anna Eshoo, D-Calif., who voted against the bill. \u201cFor example, under this bill, a sinister prosecutor in a state that criminalizes abortion could use against women their intimate data from search histories or from reproductive health apps. That loophole must be addressed.\u201d<\/p><\/blockquote>\n<p>And Senator Wyden continues to be concerned about the exemption of &#8220;de-identified&#8221; \u00a0data.<\/p>\n<blockquote><p>\u201c[T]his loophole could allow data brokers to sell location data to the government about visits to reproductive health facilities, for example, or other private information that is trivially easy to connect to individuals,\u201d a Wyden aide wrote in an email to CyberScoop. \u201cHe strongly believes this must be fixed before any legislation becomes law.\u201d<\/p><\/blockquote>\n<p>Meanwhile, here in \u201c<a href=\"__GHOST_URL__\/the-view-from-the-other-washington-federal-privacy-legislation-adppa-update-6-22\/\">the other Washington<\/a>\u201d, Kim Clark of Seattle-based Legal Voices goes even farther in Orion Donovan-Smith\u2019s Spokane <a href=\"https:\/\/www.spokesman.com\/stories\/2022\/jul\/25\/historic-data-privacy-law-could-be-within-reach-if\/\"><em>Spokesman-Revi<\/em>ew article<\/a><\/p>\n<blockquote><p>\u201cThis bill, at least from the perspective of pregnant people, it really doesn\u2019t do much\u201d<\/p><\/blockquote>\n<blockquote class=\"kg-blockquote-alt\"><p>UPDATE: Several California Privacy Protection Agency board members also expressed concerns during their July 28 special board meeting. \u00a0See <a href=\"__GHOST_URL__\/is-there-an-elephant-in-the-zoom-room\/#why-yes-now-that-you-mention-it-there-is-an-elephant-in-the-room\">Is there an elephant in the Zoom room?<\/a> for more \u2013 including a followon discussion about how similar potential ADPPA loopholes affect unhoused people.<\/p><\/blockquote>\n<p>To be clear, this isn&#8217;t the only challenge facing ADPPA. \u00a0<a href=\"__GHOST_URL__\/privacy-news-july-22\/#see-also\">Most of the other \u00a0coverage in the last week<\/a> has focused on the battle over whether ADPPA should preempt state privacy laws. At the markup, Rep. Eshoo&#8217;s amendment to strip the preemption section was voted down (8-48), but several California Representaties said they&#8217;d vote against the bill on the floor unless this issue was addressed. \u00a0Daniel Solove&#8217;s<a href=\"https:\/\/teachprivacy.com\/a-faustian-bargain-is-preemption-too-high-a-price-for-a-federal-privacy-law\"> A Faustian Bargain: Is Preemption Too High a Price for a Federal Privacy Law?<\/a> and<a href=\"https:\/\/oag.ca.gov\/news\/press-releases\/attorney-general-bonta-leads-coalition-calling-federal-privacy-protections\"> the letter from a coalition of state Attorneys General (including Washington&#8217;s) opposing preemption of state laws<\/a> have more. <\/p>\n<p>And while the version of the ADPPA the committee advanced did include some significant improvements, they also weakened the bill in some significant ways \u2013 and didn&#8217;t address the loopholes Rep. Eshoo and Sen. Wyden are talking about. They also didn&#8217;t address concerns Senate Commerce committee staffers raised in a memo, as <a href=\"https:\/\/www.washingtonpost.com\/politics\/2022\/06\/27\/abortion-ruling-could-scramble-data-privacy-talks\/\">reported by Cristiano Lima in the Washington Post<\/a>:<\/p>\n<blockquote><p>According to the memo, the <a href=\"https:\/\/republicans-energycommerce.house.gov\/wp-content\/uploads\/2022\/06\/PRIVACY_02_xml.pdf\">American Data Privacy and Protection Act<\/a> \u201cmakes it harder for women to seek redress when their sensitive health data has been used against them\u201d and would force women to \u201cjump through arbitrary, drawn-out hoops\u201d to sue over privacy violations.<\/p><\/blockquote>\n<p>As Shaunna Thomas of gender justice group UltraViolet says in the <a href=\"https:\/\/www.spokesman.com\/stories\/2022\/jul\/25\/historic-data-privacy-law-could-be-within-reach-if\/\">Spokesman-Review article<\/a><\/p>\n<blockquote><p>\u201cWe see an opportunity for asking Democrats to recognize the threats that have become far more acute in a post-Roe world, and to consider using the leverage they have \u2013 which is not insignificant \u2013 to consider these improvements in that light.\u201d<\/p><\/blockquote>\n<p>But will Democrats use that leverage? \u00a0 The risk is that contentious topics like preemption take up so much time and energy that legislators don&#8217;t talk about the elephant in the room \u2013 and so don&#8217;t realize that the current version of ADPPAl, as Kim Clark says, &#8220;really doesn&#8217;t do much&#8221; to protect pregnant people.<\/p>\n<p>We shall see.<\/p>\n<h3 id=\"update-600-pm-pacific-time\">UPDATE, 6:00 pm (Pacific time)<\/h3>\n<p><a href=\"https:\/\/cppa.ca.gov\/meetings\/materials\/20220728_item2_cppa_staff_memo_hr8152.pdf\">The California Consumer Privacy Agency (CCPA) released a bill analysis<\/a> \u00a0this morning and announced has <a href=\"https:\/\/cppa.ca.gov\/meetings\/materials\/20220728.html\">a public special board meeting at 9:00 am Thursday.<\/a> \u00a0<\/p>\n<p>\ud83c\udf7f \u00a0<\/p>\n<p>And <a href=\"https:\/\/twitter.com\/ACLU_NorCal\/status\/1552059006625034241\">this short thread from ACLU of Northern California<\/a> also makes some great points.<\/p>\n<\/p>\n<figure class=\"kg-card kg-embed-card\">\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">A lot\u2019s being said about the American Data Privacy and Protection Act.<\/p>\n<p>But not nearly enough on how it dismantles current privacy laws, including over 50 years of work in California.<\/p>\n<p>There\u2019s a reason Big Tech support it. And it\u2019s not because they care about our rights. <\/p>\n<p>Thread<\/p>\n<p>&mdash; ACLU of Northern CA (@ACLU_NorCal) <a href=\"https:\/\/twitter.com\/ACLU_NorCal\/status\/1552059006625034241?ref_src=twsrc%5Etfw\">July 26, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/figure>\n<h2 id=\"sacrificial-lambs-sneaking-loopholes-through-and-other-industry-tactics\">Sacrificial lambs, sneaking loopholes through, and other industry tactics<\/h2>\n<p>The version of ADPPA the committee advanced had a lot of changes from the subcommittee&#8217;s version (which in turn had a lot of changes from the original discussion draft). \u00a0Some strengthen the bill; some weaken it; many are just cosmetic, like changing &#8220;shall not&#8221; to &#8220;may not.&#8221;<\/p>\n<p>Virtually all of the strengthening changes either reverse a weakening change the subcommittee made, are balanced by other weakening changes, and\/or are only small fixes that leave bigger issues unaddressed. \u00a0Industry lobbyists plan for this by multiple levels of loopholes in early versions of a bill, including some &#8220;sacrificial lambs&#8221; that they know they&#8217;re going to have to give up. \u00a0As a result, privacy advocates, legislators, and staff all have to focus their energy on these relatively-minor issues. \u00a0When the change is finally made, industry can portray their concession as a compromise, and legislators and the media can talk about how the bill is getting &#8220;steadily stronger&#8221;.<\/p>\n<p>The brouhaha about whether California Consumer Privacy Agency (CCPA) can enforce the ADPPA is a good example of a sacrificial lamb and worth looking at in detail. \u00a0California&#8217;s voters created CCPA and gave it a $10,000,000 budget in a statewide referendum just two years ago, so it&#8217;s very very very unlikely that California legislators would vote for a bill that effectively gets rid of it. \u00a0 <\/p>\n<p>But the ADPPA discussion draft didn&#8217;t give state privacy agencies the authority to enforce the bill. \u00a0So everybody had to spend valuable time arguing about it before reaching the obvious conclusion that yeah, state privacy authorities should be allowed to take action to protect their residents. <\/p>\n<p>But the section that got added to the subcommittee version allowing state privacy authorities to enforce was worded in a way that it didn&#8217;t include CCPA. So now everybody had to spend time talking about that before reaching the obvious conclusion that yeah, CCPA should be allowed to take action to protect Californians. <\/p>\n<p>And in the current version there&#8217;s still a provision that state Attorneys General, including California, warn will substantially interferes with many states&#8217; investigation and enforcement authorities. \u00a0Hey wait a second, I&#8217;m noticing a pattern here. \u00a0Nobody&#8217;s mentioned this yet in any of the hearings, and as far as I know privacy groups&#8217; comments haven&#8217;t yet emphasized this issue \u2013 in fact, Alan Butler of EPIC has said the bill&#8217;s enforcement is stronger than anybody gives it credit for. \u00a0 So maybe industry will be able to sneak this major loophole through (they tried something similar in Washington in 2020). \u00a0Even if it gets fixed now, it will take more valuable time and energy.<\/p>\n<p>Another industry tactic is to get changes into the bill that they know will almost certainly get undone. \u00a0Again, this chews up time and energy from privacy advocates, legislators, and staff. \u00a0Often, industry can get a concession to &#8220;balance&#8221; their willingness to &#8220;compromise&#8221; by undoing the change \u2013 or use this &#8220;compromise&#8221; to avoid bigger changes. And when the changes get undone, it&#8217;s another opportunity for the bill&#8217;s supporters to claim it&#8217;s getting stronger, when the reality is that it&#8217;s just gotten back to where it originally was. <\/p>\n<h2 id=\"changes-since-the-subcommittee-version\">Changes since the subcommittee version<\/h2>\n<p>With that as context, here&#8217;s a list of some of the most important changes. \u00a0Many thanks to WA People&#8217;s Privacy and the other Washington privacy organizers who helped with the crowdsourced bill analysis! \u00a0I&#8217;ll continue to update this as we analyze some of the other changes.<\/p>\n<p>If you want to follow along, you&#8217;ll want the<a href=\"https:\/\/docs.house.gov\/meetings\/IF\/IF00\/20220720\/115041\/BILLS-117-8152-P000034-Amdt-1.pdf\"> July 19 ADPPA version<\/a> as amended by the six<a href=\"https:\/\/docs.house.gov\/Committee\/Calendar\/ByEvent.aspx?EventID=115041\"> amendments<\/a> that passed. \u00a0<a href=\"https:\/\/media-exp1.licdn.com\/dms\/document\/C4E1FAQG-kcljte035A\/feedshare-document-pdf-analyzed\/0\/1658364628458?e=1661990400&amp;v=beta&amp;t=rw5yxfubj0O4f0wUTkGNr1XoCc3eC0MtfVRIGhDNRkM\">The redlined version from IAPP and Future of Privacy Forum<\/a>, including all the amendments and highlighting the specific textual changes from the subcomittee&#8217;s version, is also very useful.<\/p>\n<h3 id=\"strengthening\">Strengthening<\/h3>\n<ul>\n<li>State consumer agencies with expertise in data privacy, including the California Privacy Protection Agency (CPPA), can now enforce the bill (Sec. 2(32)). \u00a0This addresses one of the many issues CPPA had brought up in their <a href=\"https:\/\/aboutbgov.com\/3XA\">July 1 comments<\/a>.<\/li>\n<li>Race, color, ethnicity, religion, and union membership are now once again considered &#8220;sensitive covered data&#8221; (Sec. \u00a02(28)(A)(14)). \u00a0This undoes a very harmful change the subcommittee had made. \u00a0Unfortunately, the committee <em><u>removed <\/u><\/em>sexual orientation<em> <\/em>from sensitive data, and \u00a0other very sensitive data such as sex, gender, immigration status ,and national origin still <em>isn&#8217;t <\/em>considered &#8220;sensitive covered data.&#8221;<\/li>\n<li>The defintion of de-identified data, which is exempt from ADPPA, has been revised to undo another very harmful change the subcommittee made (Sec 2(12)). \u00a0Note however that this does not appear to have fully addressed the concerns from Sen. Wyden and others that de-identified data is a major loophole.<\/li>\n<li>&#8220;High impact social media companies&#8221; (with more than 300,000,000 users) have to treat somebody as a minor if they &#8220;know or should have known&#8221; that person is under 17 (Sec. 2(20)(A)(i). \u00a0Kids privacy experts have been calling for this stronger &#8220;constructive knowledge&#8221; standard, so this is a big deal. \u00a0However, &#8220;small&#8221; businesses with annual revenues of $41,000,000 or less can continue to take advantage of <a href=\"https:\/\/www.npr.org\/2022\/06\/16\/1105212701\/users-beware-apps-are-using-a-loophole-in-privacy-law-to-track-kids-phones\">the &#8220;actual knowledge&#8221; loophole<\/a>. \u00a0Mid-size companies, abd large non-social media companies, split the difference with a &#8220;willful disregard&#8221; standard.<\/li>\n<li>The weak private right of action, allowing people to sue companies who break the law, now comes into effect in two years instead of four (Sec. 403(a)(1)); and people no longer forfeit their rights if they send a badly-worded demand letter, removing one of the hurdles to being able to sue (Sec. 403(a)(1)). \u00a0[Remaining hurdles still include requirements for consumers to give prior notice to the FTC, and a &#8220;get out of jail free card&#8221; that gives companies a way to duck penalties &#8212; another good example of industry&#8217;s multi-level loophole strategy.] \u00a0Balanced against this, businesses with revenues of less than $25,000,000 are now exempt from the private right of action. (Sec. 403(e)(2))<\/li>\n<li>Forced arbitration is no longer enforceable on claims related to gender or partner-based violence or physical harm (Sec. 403(b)). \u00a0However, companies can still impose forced arbitration on adults in all other cases. \u00a0During the markup, Rep. Donald McEachin of Virginia said that the bill as currently written wouldn&#8217;t have his support on the floor because of forced arbitration, and Senate Commerce Chair Maria Cantwell has flagged this as an issue that needs to be fixed.<\/li>\n<li>Changes to the section on preempting FCC privacy laws (404(b)(4)) are <a href=\"https:\/\/publicknowledge.org\/public-knowledge-urges-committee-to-support-american-data-privacy-and-protection-act\/\">appreciated by Public Knowledge<\/a>, who now supports the bill. \u00a0That said, according to EFF, ADPPA \u00a0<a href=\"https:\/\/www.eff.org\/deeplinks\/2022\/07\/americans-deserve-more-current-american-data-privacy-protection-act\">still blocks several important federal privacy laws<\/a>.<\/li>\n<li>Service providers processing data on behalf of government agencies are now (once again) not exempt from ADPPA, undoing yet another very harmful subcommittee change. \u00a0Balanced against this, though, a key restriction on all service providers \u2013 whether or not they&#8217;re operating on behalf of government agencies \u2013 have been weakened (Sec. 302). \u00a0<\/li>\n<\/ul>\n<h3 id=\"weakening\">Weakening<\/h3>\n<ul>\n<li>The &#8220;permissible purposes&#8221; for which businesses and non-profits can collect and process data without consent have been broadened substantially. \u00a0(Sec 101(b)). \u00a0One change, for example, expands the definition of &#8220;security&#8221; in 101(b)(5). \u00a0Previously, it was &#8220;network security as well as intrusion.&#8221; \u00a0Now, it&#8217;s &#8220;network security and physical security and life safety, including an intrusion or trespass.&#8221; \u00a0<a href=\"__GHOST_URL__\/is-there-an-elephant-in-the-zoom-room\/#does-adppa-protect-unhoused-people\">Does ADPPA protect unhoused people?<\/a> discusses one of the potential implications of including &#8220;trespass.&#8221;\n<p>Note that there was already concern that 101(b) purposes was over-broad \u2013 see for example Washington AG Ferguson&#8217;s <a href=\"https:\/\/www.documentcloud.org\/documents\/22111995-ferguson-privacy-letter-to-4-corners_6-24-2022\">June 24 letter<\/a> describing how &#8220;internal research&#8221; (101(b)(2)) &#8220;may be used by technology companies to maintain all data indefinitely.&#8221; \u00a0And 101(b)(6) may well be the source of the &#8220;major loophole that could allow law enforcement to access private data to go after women&#8221; Rep. Eshoo referred to. \u00a0So it&#8217;s very disappointing to see this key data minimization section getting even weaker.<\/li>\n<li>Social security numbers can now be collected, processed, and transferred without consent for &#8220;fraud and identity fraud detection and prevention.&#8221; \u00a0(102(1))<\/li>\n<li>The definition of &#8220;employee data&#8221;, which is exempt from ADPPA, has been broadened to include &#8220;information processed by an employer relating to an employee who is acting in a professional capacity for the employer, provided that such information is collected, processed, or transferred solely for purposes related to such employee\u2019s professional activities on behalf of the employer.&#8221; \u00a0(Sec. 2(8)(C)(ii))<\/li>\n<li>When people are using devices provided by their employer \u2013 or sending something to somebody whose device is provided by their employer \u2013 calendar information, address book information, phone or text logs, photos, audio recordings, and videos, maintained for their own private use is no longer considered sensitive covered data. \u00a0(Sec. 28(A)(x))<\/li>\n<li>The language requirements for privacy notices has been narrowed. Previously, these had to be provided in any language the product or service is provided in, and any language in which the company carries out activities related to such product or service. \u00a0Now, they only have to be provided in the those languages if they&#8217;re also &#8220;covered languages&#8221; (Sec. 2(10)), defined as the top 10 languages in the US. \u00a0Many immigrants, \u00a0Native Americans, and Indigenous people use software in languages that don&#8217;t fall in the top 10 (Facebook and Google both support over 100 languages), so this significantly impacts their rights.<\/li>\n<li>Service providers are now allowed to combine service provider data with covered data for the 101(b) permissible purposes (Sec. 302). \u00a0There are several other changes to this section as well, and \u00a0<a href=\"https:\/\/www.eff.org\/deeplinks\/2022\/07\/americans-deserve-more-current-american-data-privacy-protection-act\">EFF is concerned that this section will gives government contractors such Clearview AI and ID.me much more leeway than it should<\/a>. \u00a0\n<p>UPDATE, August 4: <a href=\"https:\/\/www.protocol.com\/newsletters\/policy\/cloud-enterprise-privacy\">What Microsoft, IBM and others won as the privacy bill evolved<\/a> (Ben Brody and Hirsh Chitraka on <em>Protocol<\/em>) discusses these changes in more detail.<\/li>\n<\/ul>\n<p><!--kg-card-begin: html--><span id=\"algos\"><\/span><!--kg-card-end: html--><\/p>\n<ul>\n<li>Several related changes significantly weaken the Algorithm Impact Assessments and Algorithm Design Evaluations requirements (207(c)), which are vital for enforcing the civil rights anti-discrimination protections against large companies. \u00a0One major change is to eliminate the requirement that companies use external, independent auditors or researchers to the extent possible. \u00a0As we&#8217;ve seen time and again with Facebook&#8217;s repeated denials of discrimination in housing ads \u2013 followed by settlements when external audits reveal ongoing discrimination \u2013 internal auditors are often unlikely to surface real problems.<\/li>\n<li>The standard for which algorithms require assessment (207(c)(1)(A)) has changed from \u201cmay cause potential harm\u201d to \u201cconsequential risk of harm.\u201d \u00a0This is an attempt to focus impact assessments on the highest priority algorithms, but could easily mean that important algorithms don&#8217;t get impact assessments \u2013 especially since, s <a href=\"https:\/\/www.rstreet.org\/2022\/07\/21\/marking-up-momentum-whats-next-for-the-adppa\/\">Brandon Pugh and Sofia Lesnes point out on <em>R Stree<\/em>t<\/a>, \u00a0&#8220;the exact meaning of consequential risk is not clear.&#8221; \u00a0\n<p>This is especially concerning because the definition of Covered Algorithm (now in 2(7), but otherwise unchanged in this version) also potentially excludes a lot of important algorithms; see comments from <a href=\"https:\/\/twitter.com\/Cyn_K\/status\/1532789046719619073\">Cynthia Khoo<\/a>,<a href=\"https:\/\/twitter.com\/Wenbinters\/status\/1532791295873273857\"> Ben Winters<\/a>, and<a href=\"https:\/\/twitter.com\/asusarla\"> Anjana Susarla<\/a> about the potential limitations of the &#8220;facilitate human decision-making&#8221; framing.<\/li>\n<li>Algorithm Impact Assessments no longer have to include &#8220;foreseeable capabilities outside of the articulated proposed use of the covered algorithm.&#8221; and &#8220;reasons for the superiority of the algorithm over nonautomated decision making methods&#8221;. \u00a0The requirements for these assessments were already noticeably weaker.<\/li>\n<li>Another weakness: the new version added a new requirement to authenticate global opt-out requests, which it turns out completely undercuts the purpose of global opt-out. \u00a0(Sec. 210(b) \u2013 ADPPA calls this &#8220;unified opt-out&#8221;) \u00a0<a href=\"https:\/\/cppa.ca.gov\/meetings\/materials\/20220728_item2_cppa_staff_memo_hr8152.pdf\">From CCPA&#8217;s letter<\/a>:<\/li>\n<\/ul>\n<blockquote><p>California requires businesses to honor browser privacy signals as an opt out of sale, and authentication of such requests is not required. This is to prevent hundreds of businesses from contacting the individual to confirm the opt out one-by-one and to prevent targeted advertising loopholes. ADPPA\u2019s global opt out has recently been amended to include an authentication requirement for global opt-out requests.<\/p><\/blockquote>\n<p>On Twitter, Jason Kint of Digital Content Next has an excellent explanation of why this would be so bad.<\/p>\n<figure class=\"kg-card kg-embed-card\">\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">So here is where federal bill (ADPPA) will have a massive fail if not fixed. The latest amended bill suddenly has new language allowing a company to require an authentication process before honoring the global opt-out signal. More in a minute on just how awful this would be. \/7 <a href=\"https:\/\/t.co\/DFNlukSmvm\">pic.twitter.com\/DFNlukSmvm<\/a><\/p>\n<p>&mdash; Jason Kint (@jason_kint) <a href=\"https:\/\/twitter.com\/jason_kint\/status\/1551991427558694915?ref_src=twsrc%5Etfw\">July 26, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/figure>\n<ul>\n<li>Companies with less than 15 employees are now exempt from Sec. 301(c), even if they do not qualify as Sec 209 small businesses (who were already exempt). \u00a0 This \u00a0means they don\u2019t \u00a0have to \u00a0designate a security and privacy officer; and \u00a0if they&#8217;re large data holders, they&#8217;re exempt from \u00a0the 301(c)(3) audits and compliance training requirement. \u00a0\n<p>This came in as a bipartisan amendment modifying 301(c)(1), described as lessening the burden on small businesses. \u00a0While I certainly agree \u00a0that there\u2019s no reason a corner store or tiny family-owned restaurant should have to name a security and privacy officer, \u00a0they \u00a0were already exempt due to Sec. 209. So this seems a loophole for tech companies like who process too much data to qualify for Sec. 209 \u2013 like small biomedical startups, for example (who also benefit from \u00a0another bipartisan \u00a0amendment described as removing barriers to clinical trials). As Cobun Zweifel-Keegan of IAPP reminded me, this could also exempt businesses like Cambridge Analytica \u2013 a classic example of why exempting \u00a0companies based on size can be problematic.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>As expected, the House Energy &amp; Commerce Committee advanced the bipartisan, bicameral American Data Protection and Privacy Act (ADPPA) on a 53-2 vote. It&#8217;s the first time this century a consumer privacy protection bill has ever made it out of committee in Congress, so congrats to all involved! \u00a0 ADPPA&#8217;s next step is a vote [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[458,459],"class_list":["post-4044","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-adppa","tag-federal-privacy-legislation"],"_links":{"self":[{"href":"https:\/\/2024.thenexus.today\/index.php\/wp-json\/wp\/v2\/posts\/4044","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/2024.thenexus.today\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/2024.thenexus.today\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/2024.thenexus.today\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/2024.thenexus.today\/index.php\/wp-json\/wp\/v2\/comments?post=4044"}],"version-history":[{"count":0,"href":"https:\/\/2024.thenexus.today\/index.php\/wp-json\/wp\/v2\/posts\/4044\/revisions"}],"wp:attachment":[{"href":"https:\/\/2024.thenexus.today\/index.php\/wp-json\/wp\/v2\/media?parent=4044"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/2024.thenexus.today\/index.php\/wp-json\/wp\/v2\/categories?post=4044"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/2024.thenexus.today\/index.php\/wp-json\/wp\/v2\/tags?post=4044"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}