WASHINGTON—Stating there are “contradictions” with other federal privacy laws, the Defense Credit Union Council (DCUC) has sent a letter to the House Committee on Energy and Commerce, expressing its concerns with the proposed “American Privacy Rights Act of 2024.”
On April 11, DCUC noted it first raised its concerns to Congress about this proposed legislation in letters to both the House Committee on Energy and Commerce and the House Financial Services Committee. Similar letters were also sent to the respective Senate committees.
While DCUC said it remains supportive of efforts to enhance data privacy and prevent the buying and selling of personal information, it voiced its concerns about the proposed legislation’s contradictions with other federal privacy laws such as the Gramm-Leach-Billey Act (GLBA) and the Health Insurance Portability and Accountability Act (HIPAA).
Potential Legal Risks
“Other than data security, it is unclear whether credit unions already in compliance with these laws will be exposed to new lawsuits despite GLBA compliance,” Jason Stverak, DCUC’s chief advocacy officer, said in a statement. “Additionally, we are concerned about the expansion scope and legal uncertainties that would arise from the adoption of the individual right of action proposed by the legislation.”
DCUC said it continues to emphasize the need for clarity on whether the legislation will impose comparable data security standards on merchants as it does on financial institutions.
Creates ‘Market Uncertainty’
“Merchants have a larger role in safeguarding data as consumers have fewer opportunities to opt out when purchasing goods and services. Overall, the American Privacy Rights Act has the potential to create market uncertainty, particularly in educating consumers about their rights to opt out of data collection,” Stverak said in the statement.
As CUToday.info reported earlier, America’s Credit Unions has also raised concerns over the legislation.