NAIFA and other trade associations have sent a letter to influential members of the House Energy and Commerce Committee expressing concerns with the discussion draft of the American Data Privacy and Protection Act, which is a national uniform privacy law proposal.
NAIFA supports federal laws and regulations protecting the confidentiality of personal information and believes policy at the federal level will help avoid problems a variety of confusing and potentially contradictory state laws would cause. NAIFA members provide financial products, services, and advice to Main Street American families and businesses. Their clients entrust them with sensitive personal information, so it is among the highest priorities for our industry that we keep that information secure.
“A well-crafted federal consumer privacy law with uniform standards will help ensure consumers benefit from innovation while uniformly protecting Americans’ privacy nationally,” states the letter addressed to Committee Chairman Frank Pallone, Ranking Member Cathy McMorris Rodgers, Subcommittee on Consumer Protection and Commerce Chairwoman Jan Schakowsky and Subcommittee Ranking Member Gus Bilirakis.
The discussion draft legislation has raised concerns in several areas, including:
- Provisions relating to the Gramm-Leach-Bliley Act, which has served as the primary authority on consumer protection for financial privacy for over 20 years.
- The allowance of private rights of action.
- A lack of clarity that the federal law would preempt state privacy laws.
The letter respectfully asks the Committee to allow more discussion and revision of the draft proposal.