A national U.S. data privacy law would solve a trillion-dollar problem

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The infrastructure package recently passed by the Senate, while a critical piece of law for the future of the United States, leaves out an important area: data.

As a major challenge for all businesses in the United States, data represents a modern type of infrastructure that must be treated with the same care and consideration as roads and bridges. It is also a critical foundation for many of the benefits of enhanced broadband services, including equal access to information and free internet, which lawmakers have already included in the bill.

Strengthening America’s future requires a single set of national privacy laws – either as standalone legislation or as part of the infrastructure bill that will be submitted to the House of Representatives. In the absence of federal action, the accelerated passage of a patchwork of state laws will continue, affecting not just large corporations but a problem for lawmakers, business leaders and citizens alike.

To put it in perspective, the cost of implementing the California Consumer Privacy Act (CCPA) is projected to reach $ 55 billion. Now consider the multiplier effect of dealing with numerous, conflicting guidelines in each state. If only half passed their own laws, the cost could easily exceed a trillion dollar impact – equal to the cost of the infrastructure package alone and a third the size of the Senate-approved budget of $ 3.5 trillion for ” human infrastructure ”. With 15 different states currently enacting or proposing new data protection laws, this is no small problem.

In today’s digital age, data and technology are fundamental to our economy and future; They are critical infrastructure. When used responsibly, they have the power to create transformative products, services, and benefits for all. However, this requires a common understanding of participation.

America grew largely due to innovations that add value to people around the world. We pride ourselves on having an innovation economy driven by entrepreneurs, data and technology. For example, the Internet has created tremendous economic benefits as over 10 million US jobs depend on it, not to mention access to information that was largely free and that was previously inaccessible to the masses. It’s not just economic, it’s democratic.

What should a national data protection law look like?

The good news is that lawmakers don’t have to start from scratch. The US already has numerous data protection laws such as CAN-SPAM, HIPAA, COPPA and Regulation B. Congress can build on this existing solid foundation to create a single national data protection law that allows everyone to take advantage of data-driven products and Services while providing the necessary and enforceable protection.

That single set of data protection laws must be:

• Fair & balanced: It must be clear why data is being collected, what it is being used for, and it should not be hidden behind pages of legal text. There must be a balance between people’s individual rights and business needs.
• Economical & enforceable: Marketing and advertising must be approved uses as they largely fund a free and open internet. Privacy laws need to prevent costly and frivolous lawsuits so regulators can focus on protecting people from bad actors and cleaning up any industry that materially and negatively affects people.
• Open & transparent: People should be able to ask any company what data they have about them, view, correct, or change and even delete it if their identity can be verified.
• Safe & unique: Universal data definitions must be agreed, data collected and securely stored. Federal data protection laws must preempt all other state, local, and even potentially conflicting federal laws.

In today’s economy, data is needed to deliver innovative goods and services. Think again of the internet example: no company or country controls everything. Data is the language of decisions and insights, and fair play means that all companies need equal access so that they can master them and be successful. Data should not be a monopoly control that only benefits the largest companies or blocks access to decisions and insights.

The economic impact of doing nothing

The economic effects shown due to the lack of a national data protection law are only estimates. You don’t even start calculating the impact of missed economic opportunities that would result from forcing organizations to neglect innovation in order to focus on complex, cross-state compliance.

It is imperative that the US see data for what it is – critical infrastructure – and pass a number of national data protection laws. It is also up to brands, industry experts and all of us to get the congress to act. Not only to avoid the rising cost of multiple state laws, but also to ensure America’s ability to compete globally and advance as a nation. This is the next critical trillion dollar decision the United States faces.

Chad Engelgau is the Chief Executive Officer of Acxiom. Previously, Chad was the global chief data strategist at Kineso, the marketing intelligence unit of IPG, the parent company of Acxiom.

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