Hearing of the Senate Commerce, Science, and Transportation Committee - Opening Statement of Senator Wicker, Hearing on Policy Principles for a Federal Data Privacy Framework in the United States

Hearing

Good morning to you all. Today we hold our first hearing this Congress to discuss policy principles for a federal consumer data privacy framework. I am glad to convene this hearing with my good friend, Ranking Member Cantwell.

We live during an exciting time of rapid innovation and technological change. Internet-connected devices and services are virtually everywhere -- in our homes, cars, grocery stores, and right here in our pockets.

The increase in Internet-connected devices and services means that more consumer data than ever before is flowing through the economy.

The economic and societal benefits generated by the consumer data are undeniable. From this data, meaningful insights are gleaned about the needs, preferences, and demands of consumers and businesses alike. These insights spur innovation, help target investment, and create opportunities.

The material benefits of data include increased productivity and efficiency, reduced costs, greater efficiency, greater convenience, and access to customized goods and services that enhance our safety, security, and overall quality of life.

While the benefits of consumer data are immense, so too are the risks.

Consumer data in the digital economy has become a target for cyber-criminals and actors that exploit data for nefarious purposes.

This problem is exacerbated by the failure of some companies to protect consumer data from misuse and unwanted collection and processing.

These issues threaten to undermine consumers' trust in the Internet marketplace, diminishing consumer engagement in the online ecosystem.

Consumer trust in the Internet marketplace is essential. It is a driving force behind the ingenuity and success of American technological advancement and prosperity.

Congress needs to develop a uniquely American data privacy framework that provides consumers with more transparency, choice, and control over their data. This must be done in a manner that provides for continued investment and innovation, and with the flexibility for U.S. businesses to compete domestically and abroad.

It is clear to me that we need a strong, national privacy law that provides baseline data protections, applies equally to business entities -- both online and offline -- and is enforced by the nation's top privacy enforcement authority, the Federal Trade Commission.

It is important to note that a national framework does not mean a weaker framework than those that have already passed in the U.S. and overseas or being contemplated in the various states.

Instead it means a preemptive framework that provides consumers with certainty that they will have the same set of robust data protections no matter where they are in the United States.

We welcome our distinguished witness panel:

Mr. Michael Beckerman, President and CEO of the Internet Association
Mr. Brian Dodge, Chief Operating Officer of the Retail Industry Leaders Association
Ms. Victoria Espinel, President and CEO of BSA -- The Software Alliance
Mr. Jon Leibowitz, Co-Chairman of the 21st Century Privacy Coalition
Mr. Randall Rothenberg, CEO of the [Interactive] Advertising Bureau
Dr. Woodrow Hartzog, Professor of Law and Computer Science at Northeastern University School of Law and Khoury College of Computer Sciences

I hope our witnesses will address the critical issues that this committee will need to consider in developing a federal data privacy law, including:

How best to protect consumers' personal data from being used in ways they did not consent to when collected by the stores or websites they visit.

How to ensure that consumers are presented with simplified notices about what information an organization collects about them, instead of lengthy and confusing privacy notices or terms of use that are often written in legalese and bury an organization's data collection activities.

How to enhance the FTC's authority and resources in a reasonable way to police privacy violations and take action against bad actors anywhere in the ecosystem.

How to create a framework that promotes innovation and values the significant contributions of entrepreneurs, start-ups, and small businesses to the U.S. economy;

How to provide consumers with certainty about their rights to their data -- including the right to access, correct, delete, and port their data, while maintaining the integrity of business operations and avoiding unnecessary disruptions to the internet marketplace; and

How to ensure a United States data privacy law is interoperable with international laws to reduce compliance burdens on U.S. companies with global operations.

I look forward to a thoughtful discussion on these issues and I want to welcome all of our witnesses and thank them for testifying this mornin

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