The Quest for a Comprehensive Federal Privacy Law: ADPPA vs APRA

The proliferation of new (differing) state data privacy laws across the United States will significantly impact how organizations manage and govern their information. Some of the key ways these state laws will affect corporate information management practices include:

• Data mapping and inventory: Companies must carefully map and inventory the personal data they collect, process and store to understand their obligations under various state laws. This includes identifying what data qualifies as personal information, where it is located, how it moves and who can access it.
• Data governance frameworks: Robust data governance frameworks will become essential to ensure compliance with varying state requirements concerning data collection, use, retention, security and consumer rights such as access, deletion and opt-outs. Companies must establish policies, processes, and controls aligned with each state law or wait for a preempting federal law to be passed.
• Consumer rights management: With many states granting expanded consumer rights, corporations will need mechanisms to efficiently handle data subject access requests related to data access, portability, deletion, opt-outs from sales/sharing and other privacy rights across different jurisdictions.
• Data security enhancements: Most state laws require companies to implement reasonable data security practices corresponding to the risks. This may involve enhancing security controls, conducting risk assessments, designating data protection officers and implementing processes like data protection impact assessments.
• Third-party risk management: Companies must closely evaluate and monitor data sharing/processing with third parties to ensure compliance with state laws.
• Recordkeeping and documentation: State laws often require detailed recordkeeping and documentation related to data processing activities, consumer requests, risk assessments and data protection impact assessments to demonstrate compliance.
• Employee training: Due to varying privacy requirements across states, comprehensive employee training on data handling, consumer rights, incident response and compliance processes are essential.
• Regulatory reporting and breach notifications: Different state laws have varying data breach notification requirements. Corporations need streamlined processes to assess incidents and notify regulators and consumers within mandated timeframes across jurisdictions.
• Internal investments: Corporations will likely invest in privacy management technology, automation tools and skilled personnel to implement compliance across various state privacy regulations efficiently.

Considering the varied state data privacy laws, corporations must adopt a centralized and rigorous approach to data governance. This approach should encompass consistent practices, documentation, and controls while still accommodating the specific requirements of each state in which they operate.

ADPPA and APRA are significant efforts to establish a comprehensive federal privacy law in the United States. However, their differences highlight the ongoing challenges of balancing consumer protection and business interests in the digital age.

As the legislative process continues, stakeholders from various sectors will need to engage in constructive dialogue and seek areas of compromise. Although finding a perfect solution that satisfies all parties may be elusive, the urgency of addressing data privacy concerns and providing a clear regulatory framework cannot be overstated.

Ultimately, the success of any federal data privacy law will depend not only on its specific provisions but also on its ability to adapt to emerging technologies and evolving societal attitudes toward data privacy. By recognizing the cultural changes, policymakers can create a foundation for responsible data stewardship that fosters data subject trust and innovation while protecting individual rights and upholding democratic values.