Senate Bill Would Force Companies to Safeguard Consumer Data

Senate legislation introduced Tuesday would require websites, applications and other online providers and services to take steps to protect consumers’ personal and sensitive information.

Introduced by Sen. Brian Schatz, D-Hawaii, the Data Care Act would establish new rules governing how companies and online platforms can collect, share and safeguard sensitive information, including Social Security numbers, driver’s licenses and other personally identifiable information.

In a statement, Schatz said that while doctors, lawyers and bankers are legally obligated to treat their clients’ information with special care, the Data Care Act would ensure the same legal standard applies to online companies. The bill currently has 17 co-sponsors, though no support yet from Republicans.

“Websites and apps that collect personal information have a responsibility to protect that data and not use it in a way that harms its own users,” Schatz said. “Our bill will help make sure that when people give online companies their information, it won’t be abused.”

The bill outlines “reasonable” duties of care, loyalty and confidentiality, and dictates that companies that don’t measure up to those duties would be in violation of Federal Trade Commission rules and therefore subject to fines. Schatz previously introduced two versions of the bill in 2018 and 2019.