As Halloween rapidly approaches, the Insights Association is searching for treats in legislation and regulation while trying to defuse the tricks that may pose a threat to the insights industry. In October, we looked at the FTC and some privacy legislation concerns, argued against proposed state data taxes, analyzed AI regulatory proposals, looked at new non-compete restrictions in California, and new federal registration responsibilities for a lot of small insights businesses.
Consumer privacy and data security
The Federal Trade Commission (FTC), in a proposed rule on consumer data privacy and security expected to be released in the next couple of months, could potentially restrict most work in the insights industry. IA explored what specific acts or practices the FTC might target.
The FTC is operating without a full complement of commissioners, so a Senate committee recently held a hearing to consider the nomination of a pair of new ones -- Andrew Ferguson and Melissa Holyoak -- and the renomination of another -- Rebecca Slaughter.
Elsewhere at the federal level:
- The You Own the Data Act (YODA Act) would prohibit a lot of data collection, use, and storage by a number of insights companies and organizations, as well as requiring several common consumer data privacy rights, with no preemption of state laws.
- Bill Cassidy (R-LA) circulated a white paper on a regulatory approach to artificial intelligence (AI) in the health, education, and labor contexts, to which Privacy for America offered helpful recommendations in return, focused on health-related data.
And at the state level:
- IA submitted testimony for a hearing on the Massachusetts Data Privacy Protection Act (MDPPA), comprehensive privacy legislation modeled on the federal legislation that passed out of a House committee last summer.
- California's data broker registry was expanded with a new law adding a centralized one-stop consumer data deletion mechanism. Most everyone in the insights ecosystem will feel the downstream effects.
The Insights Association urged the District of Columbia to reject a proposal that would tax consumer data and testified against a bill in Massachusetts that would levy an excise tax on data collection from Massachusetts consumers by some companies and organizations owning or operating an online focus group or market research online community.
A pair of new California laws now thoroughly ban most non-compete agreements in employment contracts, including ones signed in other states.
Artificial Intelligence (AI)
Draft federal legislation (the AIRIA Act) would regulate potentially risky uses of AI and require transparency when providing content from generative AI. In addition, NIST would be tasked to conduct research and facilitate standards to more clearly distinguish human- and AI-generated content and support standardization of methods for detecting and understanding emergent properties in AI systems in order to mitigate issues stemming from unanticipated behavior. The bill would be enforced primarily by the U.S. Commerce Department.
A recent pair of AI primers may guide how state and federal policymakers approach regulating AI across the economy, including the insights industry, while by a state legislators’ group is promoting “a permissionless innovation approach” to AI regulation.
Also, former Congressman Will Hurd (R-TX), a lesser-known Republican candidate for President in 2024, was the first candidate to propose a policy approach to AI (before dropping out of the race).
Beginning on January 1, 2024, a new federal initiative to limit money laundering through corporations, limited liability companies, and other similar legal entities takes effect. This law – the Corporate Transparency Act (CTA) – will require registration with the Financial Crimes Enforcement Network (FinCEN) of the Department of the Treasury for a large percentage of legal entities in the United States (including those engaged in the insights industry) and those that own and control them.
The spooky season in advocacy
The Insights Association can only defend the insights industry from scary policymaking across the U.S. with ample support from IA members and sponsors like you.
We remain available to answer your questions on these and other legislative/regulatory/legal issues. Please keep in touch and happy Halloween!
This information is not intended and should not be construed as or substituted for legal advice. It is provided for informational purposes only. It is advisable to consult with private counsel on the precise scope and interpretation of any laws/regulation/legislation and their impact on your particular business.