We need a privacy framework that protects consumers without harming competition and growth
As life in today’s world becomes increasingly intertwined with the digital, the conversation around finding responsible solutions to protect online privacy is getting louder. Shoring up privacy rights as our lives become more and more reliant on being online is an effort most can agree is necessary. And with the current patchwork of state privacy laws, there is a need for responsible, common sense federal privacy legislation. But getting it right is paramount.
The American Privacy Rights Act (APRA) is a well-intentioned attempt at federal privacy legislation that unfortunately misses the mark. While the bill is aimed at enhancing consumer privacy and cutting through the noise of state laws with a more cohesive approach — both of which are needed — APRA would do more harm than good. This bill would harm competition and impede growth for small businesses and cede the United States’ status as the front-runner in the AI race.
As we look at the digital economy, digital advertising is projected to reach $298 billion in 2024. American companies of all sizes rely on digital ads to reach their customers and grow their businesses. Unfortunately, the data minimization provisions in the bill could severely limit their ability to do so because of the prohibitions on ad measurement and contextual advertising. Ad purchasers need the ability to measure the efficacy of their digital advertising to ensure that they are reaching their potential customers and to allocate their resources efficiently. If they don’t have a way to measure that value, then how can they justify the spend? For small businesses, metrics like these are key to their sales objectives and growth. Additionally, ad purchasers rely on contextual advertising to expand their customer base. Eliminating these two critical tools would be detrimental to start-ups trying to get off the ground and small businesses that use digital advertising to grow their markets.
Let’s dive into the broader global implications of this bill in terms of the race for AI dominance. The United States is currently leading the pack in terms of development and technology of AI. However, that is largely due to permissible access to data to help train large language models. Businesses need to be able to responsibly access and use this data to further innovation and build tools that will have a positive impact on every sector of our economy. Right now, we are winning this race because China and other countries have onerous restrictions that have hindered their tech sector’s ability to innovate. We need to put forth responsible policies that allow AI innovation and growth in a safe way without completely kneecapping the entire effort by eliminating access to much needed data.
There is bipartisan consensus that something like APRA is needed to bring comprehensive reform to the increasingly murky area of privacy and enhance online safety measures as we depend on the digital world more every day. But this legislation has the potential to lead to far too many unintended consequence that will harm competition, consumers, and our global leadership in the tech space.
