BNA INSIGHTS: Proposed Data Privacy Legislation Generates Relief as Well as Concerns

Last month, U.S. Representatives Rick Boucher (D-Va) and Cliff Stearns (R-Fl), Chair and Ranking Member, respectively, of the Subcommittee on Communications, Technology, and the Internet, released a “discussion draft” of proposed legislation aimed at regulating the collection and sharing of information for marketing purposes (9 PVLR 657, 5/10/10). After repeated threats by Federal Trade Commission Chairman Jon Leibowitz to press for an “opt-in” regulatory scheme for data collection, marketers breathed an initial sigh of relief at the fact that, in many respects, the draft embraces the notice and “opt-out” approach advocated by many self-regulatory organizations. The relief was short-lived, however, as the reality set in that the legislation, as proposed, would impose sweeping changes in existing practices in both online and offline advertising. This article discusses notable provisions of the Boucher proposal, and identifies a number of issues that…

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