The Impact of the 2023 Consumer Privacy Laws on Businesses
More and more bills are being introduced regarding consumer privacy- here’s what you need to know to protect your brand and slay your marketing.
Most bills focus on how brands can collect data to share with other applications or brands, who can access the data collected, requirements for protecting sensitive data, and the consumer’s right to correct and delete data.
A consistent theme throughout the bills is the introduction of explicit opt-in consent for collecting consumer data- meaning instead of consumers having to take a step to opt out of data collection, apps are required to get consent from the consumer before collecting any data.
Bills Directly Impacting Health Brands
Arguably the most critical bill for health brands to be aware of is the “My Body, My Data Act of 2022”. This bill requires any service providers that collect, retain, use, or disclose personal health information to engage in data minimization practices based on opt-in consent and strict necessity. The bill also requires service providers to provide users with rights of access and deletion of their health data. The bill allows enforcement by the FTC and private civil actions.
Another bill for health brands to be aware of is the “Stop Commercial Use of Health Data Act.” This bill prohibits using personally identifiable health data in commercial advertising by entities that annually collect the health data of more than 1,000 US individuals. This bill also prohibits the use of data collected voluntarily- there is a good chance that because this bill is so strict, it will not pass.
Bills Impacting Marketing
The “Deceptive Experiences To Online Users Reduction Act” would prohibit large online operators from misleading consumers to provide personal information or giving consent for their data to be collected. The bill would require obtaining informed consent from consumers before being able to study behavior patterns.
The PRIVATE Act would prohibit manufacturers and software developers from collecting data from microphones, video technologies, and internet-connected devices without obtaining consent from consumers. We’re looking at you, Alexa.
Political marketing is also under scrutiny – the Preserving Political Speech Online Act would allow the FTC to require online platforms, such as social networks and third-party advertisers, to follow specific rules when promoting political candidates. The bill would also prevent sites from censoring these advertisements. The bill would also require online platforms to be transparent regarding purchasing political advertising.
Bills Impacting FTC Authority and Enforcement
There is a focus on establishing more accountability, improved enforcement, and increased authority with the FTC.
With the intent to improve enforcement, Congress may expand its reach and establish more niched departments within the FTC, such as an Office of Technologists and a Bureau of Digital Services Oversight and Safety.
Under the CLEAR Act, the FTC would also be required to publish annual reports about its investigations, including the number and disposition of all investigations.
One bill that would potentially require the FTC to change some processes- the “Protecting Consumer Information Act of 2021” scrutinizes the FTC’s privacy standards as to whether they are sufficient to protect consumer’s financial information from cybersecurity threats.
An important bill to be aware of that passed in the House is the Consumer Protection and Recovery Act. This bill would allow the FTC to seek restitution/monetary relief in federal court from businesses that engage in unlawful commercial practices.
Although it might seem overwhelming with the number of bills that could be passed, it doesn’t have to be the end of the world for your brand. As long as you are obtaining consent from your consumers, protecting their data, and giving them the ability to delete personal information, you’re golden.
Want to know how InfluenceLogic can help you stay on the right side of the FTC? Reach out to us at compliance@influencelogic.com to learn more.
