Ahead of Thursday’s Scheduled Markup of the American Privacy Rights Act of 2024, ACT | The App Association Calls for Increased Protections for Small Businesses

On Thursday, the U.S. House Subcommittee on Innovation, Data, and Commerce is scheduled to markup three bills, including the American Privacy Rights Act of 2024 authored by Rep. Cathy McMorris Rodgers (R-WA) and Sen. Maria Cantwell (D-WA). In response to this development, Morgan Reed, President of ACT | The App Association, released the following statement:

“Last week, more than 50 entrepreneurs from 30 states, all members of the App Association, sat down with lawmakers on Capitol Hill to push for comprehensive privacy reform that is fair for small businesses and sets them on the path to success. While we appreciate the work that has been done so far, the latest bill draft, unfortunately, does not yet meet the needs of small businesses. A comprehensive privacy bill must include effective federal preemption so that start ups and entrepreneurs can thrive across the country.

“This bill in its current form leaves the small businesses that are the backbone of our nation’s economy to fend for themselves against a patchwork of state laws and regulations. Contrary to what we believe are the sponsors’ aims on privacy, large businesses or those companies that sell user data would benefit from preemption as they would only have to comply with this new federal law. Small businesses that do not sell user data would find themselves at the mercy of 19 different state privacy bills ironically, the best path for small businesses that currently refuse to sell users’ data would be to change course in order to benefit from the bill’s preemption language.

“In addition, the bill does not address problems raised by a broad private right of action. We are concerned that the resulting sue-and-settle business model would harm App Association members. Without a narrowly tailored private right of action, data privacy and security measures that reliably preempt state laws, and a reasonable path to compliance, this much-needed comprehensive federal privacy bill may achieve the opposite of its worthy goals. The App Association will continue to work with Rep. McMorris Rodgers, Sen. Cantwell, and other members of Congress to get the bill into better balance.”