(By Paul Garboczi, Student Attorney)
On Friday, the White House released a draft of the Consumer Privacy Bill of Rights Act of 2015. This Wall Street Journal article summarizes the bill fairly well. The bill essentially sets forth a set of industry best practices that the Federal Trade Commission would enforce on the private sector. Private sector firms would be encouraged to create privacy codes of conduct, and if they broke their own codes the FTC could take action (although the FTC would not be given rulemaking authority). The bill attempts to give consumers the right to access their information by requesting it from companies. However, companies could refuse such a request if it was “frivolous or vexatious.” The bill is unclear on who would decide if such requests were frivolous. It basically calls on companies to respect and protect consumer privacy without creating a robust enforcement mechanism for consumer privacy.
Since the draft was released on Friday, criticism of the bill has been swift. Consumer privacy advocates are denouncing it for not going far enough in protecting privacy. Opposers of top down regulatory schemes are criticizing it for attempting a one-size-fits-all solution to a problem that requires a flexible approach, and burdening American innovation. The FTC itself released a statement criticizing the bill for lacking “strong and enforceable protections” for consumer privacy. There is also a concern that the bill would preempt state laws, some of which provide stronger privacy protections for consumers.