National & Minnesota Report
We’ve seen a ton of news over the past few weeks centered on our politicians, with the race for President sucking up all the oxygen. But we’d like to call attention to something getting less attention than it should be, and it’s something that will impact all of us reading this website.
Back in April, Congress introduced a bipartisan and bicameral data privacy bill known as the American Privacy Rights Act. The initial reaction was warm, if a bit reserved. Congress has gone down this road before, and previous bills failed some critical markers. For starters, the burdensome regulations that would be imposed on small businesses would do little to protect privacy while stifling creativity. There were initial hopes that this new bill would right the wrongs of the old, while giving clarity to small businesses who are increasingly troubled by the emerging patchwork of state-by-state privacy laws. After-all, its bipartisan and bicameral, so it should be a better bill right?
Unfortunately, it seems as if the bill has doubled down in all the worst ways. While there’s a small business carve out in the bill, there’s also a variety of large exemptions contained within this carve out – which puts businesses at risk of legal jeopardy. At the same time, the bill’s clause around a federal privacy law is full holes that would place even more burden on small businesses. Opposition has been widespread, from retailers to consumer groups. We identified one Minnesota resident, Ben Footh, owner of Footh Auto Sales. Who’s been vocal about the impact of this legislation.
Footh, along with several other Minnesota entrepreneurs took time to fly to Washington DC in May, as part of a delegation with a group called Internet for Growth. He explained that as an entrepreneur that wears many hats, digital advertising has been crucial for his businesses. Using anonymized data, his company can place low-cost ads that reach the intended market for his different enterprises. To him, bills like the American Privacy Rights Act would drive up costs while reducing the effectiveness of the ads. Ultimately, he’d be paying more and getting less.
The legislation has had an odd trajectory, initial momentum in the House seemed to dissolve due to mounting backlash. However, recent reports indicate that the bill may still advance in the Senate. Congress is looking at a tight calendar, which means it’s possible this bill could be snuck into a “must-pass” bill. This has business owners like Footh nervous. With all the attention on the elections these next few months, who will speak up if this bill advances?
Time will tell how things unfold. We’ll continue to monitor the trajectory of this legislation here at Checks & Balances.