The new bill limits personal data collection by companies to generate targeted Ads

A bipartisan bill has been passed recently by the United States House of Representatives which imposes restrictions on big tech companies including Alphabet’s Google, Meta, and others to refrain from catching users’ sensitive information based on their online browsing interests.

The sensitive information outlines the data gathered from consumers’ internet activity as well as social security numbers. All individual data excluding which is essential for providing product services must be protected. The American Data Privacy and Protection Act (ADPPA) specifically puts a ban on third-party websites and tech giants to offer a safe and protected environment for people using the internet.

The measure passed by the House Energy and Commerce Committee is still some steps away to become law. Earlier, bipartisan online privacy bills withstand firm opposition from big tech companies, as their policies are entirely based on the consumer data for showcasing advertisements. The previous version somehow let companies serve advertisements gleaned from the public’s internet browsing data exclusively with the user’s clear consent. The advertising companies opposed that as well. They demand that organizations should be allowed to generate targeted ads on an opt-out basis. But, now the revised bill will disallow the major opportunities for ad targeting. In addition, the data privacy bill would let web users pull out themselves from targeted ads and restrict advertisements aimed at children or minors under seventeen years of age. The comprehensive bill will allow users to get an entire opportunity to withdraw targeted ads.

Shortly after the privacy bill got around, the companies began to criticize provisions that would outlaw web-based behavioral advertising. From an organization’s point of view, data is the driving force of consumer spending, which enables companies to compete with each other. Many companies unite together and have a concrete stance that they would not follow this law enforcement. The businesses wrote a joint letter to U.S lawmakers including Interactive Advertising Bureau, American Advertising Federation, Insights Association, and so forth. The business group added that the provision would repress the data-acquiring process. Further, they added that demographic data collection and web browsing activity will be halted and as a result, it will impact responsible and competent advertising.

The VP of Network Advertising, David LeDuc communicates that the revised version raises amplified concerns indicating to block micro-manage creative data utilization. Furthermore, the bill also prohibits the collection of biometric data, emails, voice notes, etc. because this information also comes under Sensitive data.

On the end note, much of the debate over these acts is intent on whether consumers would be able to file a case of privacy violations against companies or not. Because the federal legislation would take action against state laws, it will become very difficult for them to oppose the enforcement of the law.

Read next: 70% of Gen Z Consumers Are Unhappy With Their Purchase Journeys on Social Media, New Survey Reveals
Previous Post Next Post