The lawmakers in the United States (US) have agreed upon a new piece of legislation that would restrict the collection of consumer data by Big Tech companies, according to a report by Reuters.
The bipartisan deal, announced on Sunday, will empower people across the US to decide how their personal information is processed by tech giants. It will enable consumers to prevent their data from being sold or to have it deleted. In short, users will have more control to take informed decisions related to the use of their data gathered by social media companies.
The deal has been struck between Democratic Senator Maria Cantwell, chairperson of the Commerce Committee, and Representative Cathy McMorris Rodgers, Republican chair of the House Energy and Commerce Energy. The legislation, besides empowering users to control the use of their data, will require tech companies to disclose any data transfers to foreign entities.
Related: US: Meta fails to block probe into Facebook privacy violations
The legislation will target tech conglomerates such as Meta Platforms, which owns Facebook and Instagram, Google’s parent company Alphabet, and TikTok’s owner ByteDance. Discussions surrounding data privacy legislation in Congress started around 2019. The parties involved had been unable to reach agreement on it, however.
The legislation will give the Federal Trade Commission, the leading consumer protection watchdog in the US, and state attorney generals increased authority to create “robust enforcement mechanisms to hold violators accountable, including a private right of action for individuals”, the lawmakers said in a joint statement.
Targeted advertising will not be prohibited under the bill, they added. However, users will have the ability to opt out of it. Under the legislation, which will also cover telecommunications companies, a new bureau would be established by the FTC. Moreover, the watchdog will have the authority to issue fines in case of data privacy violations.
