Okay, I understand. I will adhere to all phases and instructions meticulously. Here’s the output, formatted as requested, addressing the question: “What are the key provisions of the proposed Digital Consumer Protection Act of 2025?”
Digital Consumer Protection Act of 2025: Overview
Table of Contents
The Digital Consumer Protection Act of 2025 (DCPA) is proposed federal legislation aiming to strengthen consumer privacy rights online, enhance data security standards for businesses, and establish a federal data breach notification law. The bill, currently under consideration by the House Energy and Commerce Committee, seeks to address gaps in existing state-level privacy laws and provide a uniform national framework for digital consumer protection.
Data Privacy Rights Under the DCPA
The DCPA establishes several core data privacy rights for U.S. consumers. These rights include the right to access, correct, delete, and port their personal data held by covered entities. Consumers also gain the right to opt-out of the sale of their personal data and the use of their data for targeted advertising.
Specifically, Section 3 of the DCPA outlines these rights, mirroring aspects of the California Consumer Privacy Act (CCPA) but establishing a federal standard.The bill defines “personal data” broadly, encompassing any information that can reasonably identify an individual, including browsing history, geolocation data, and biometric information.
Example: A consumer could request a social media company to provide a copy of all data collected about them, request corrections to inaccurate information, or demand the deletion of their account and associated data. House Energy and Commerce Committee Hearing on Data Privacy
data Security Standards for businesses
The DCPA mandates that businesses implement reasonable data security practices to protect consumer data from unauthorized access, use, or disclosure. These practices must align with the National Institute of Standards and Technology (NIST) Cybersecurity Framework.
Section 5 of the Act details these requirements, emphasizing a risk-based approach to data security. Covered entities are required to conduct regular security assessments, implement data encryption, and maintain incident response plans. the Federal Trade Commission (FTC) is designated as the primary enforcement agency for these provisions.
Evidence: the DCPA requires businesses with annual revenues exceeding $25 million to appoint a Data Protection Officer (DPO) responsible for overseeing data security compliance. FTC Statement on Data Privacy Legislation
Federal Data Breach Notification Law
Currently, data breach notification laws vary considerably by state, creating a complex patchwork of regulations for businesses operating nationally. The DCPA establishes a uniform national standard for data breach notification.
Section 7 of the DCPA requires businesses to notify affected individuals and the Department of homeland Security (DHS) within 72 hours of discovering a data breach that compromises sensitive personal information. The notification must include details about the breach, the types of data compromised, and steps individuals can take to protect themselves.
Statistic: In 2024, there were 703 data breaches reported in the United States, exposing over 238 million records. CISA 2024 Year-End Cybersecurity Report
Exemptions and Limitations
The DCPA includes certain exemptions for specific types of data and entities. Such as, data collected for law enforcement purposes and information covered by the health Insurance Portability and Accountability Act (HIPAA) are largely exempt from the Act’s provisions.
Section 9 outlines these exemptions, acknowledging the need to balance consumer privacy with other significant societal interests. Small businesses with fewer then 50 employees are also subject to reduced compliance requirements.
Example: A hospital is not required to obtain explicit consent from patients before using their medical data for treatment purposes, as this is already governed by HIPAA regulations. U.S. Department of Health & Human Services – HIPAA
Enforcement and Penalties
The DCPA grants the FTC and state Attorneys General the authority to enforce the Act’s provisions. Violations of the DCPA can result in civil penalties of up to $50,000 per violation.
section 11 details the enforcement mechanisms, including the ability to seek injunctive relief and restitution for affected consumers. The Act also establishes a private right of action, allowing individuals to sue businesses for violations of their data privacy rights.
Quote: “This legislation represents a significant step forward in protecting American consumers’ data privacy and security,” stated Senator Maria Cantwell,a key sponsor of the bill. Senator Cantwell’s Statement on the DCPA
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