March blew in like a lion for the insights industry, but it shows no signs of leaving like a lamb, as the Insights Association grappled with lots of advocacy issues, including: complicated new prohibitions on data sharing with certain foreign countries (and companies controlled by them); a new FTC nominee; worrisome tax bills in Maryland; a California bill to restrict artificial intelligence in interactions with research subjects; a new U.S. Labor Secretary potentially hostile to treating research subjects as independent contractors; census funding; boosting the insights workforce; and the latest drama with small business reporting requirements.
Privacy and Data Security
A new rule from the U.S. Justice Department (DOJ) prohibits transferring or sharing personal data (mostly sensitive, and mostly in bulk amounts) with countries of concern (China, Cuba, Iran, North Korea, Russia, and Venezuela), people located in such countries, or companies under significant control of those countries. It takes effect on April 8, 2025.
A Senate committee examined the nomination of Mark Meador to be a Republican commissioner on the Federal Trade Commission (FTC), looking at issues like consumer privacy and data security, and others.
Tax
IA jousted with worrisome tax legislation in Maryland this month:
Artificial Intelligence
The California No Robo Bosses Act, while intended to restrict the use of artificial intelligence (AI) in the workplace, could also restrict the use of AI and automation in interactions with research subjects. Violations would be subject to private lawsuits.
The Texas Responsible Artificial Intelligence Governance Act would prohibit intentionally using AI systems for intentional deception or manipulation, unlawful discrimination, or political viewpoint discrimination. It would also restrict various AI uses by state government entities; launch a regulatory sandbox program to provide flexibility while AI developers and deployers, and regulators, get up to speed; and set up a Texas Artificial Intelligence Council.
Research subjects = independent contractors
Former-Rep. Lori Chavez DeRemer (R-OR-04) answered questions about the protection of independent contractor status, an issue of key importance to the insights industry’s ability to provide incentives to research subjects, during her Senate nomination hearing. The Senate then approved her nomination on March 10, 2025 to be Secretary of the Department of Labor, to which the Insights Association expressed concern.
Some legislation on this topic also emerged in the Senate this month:
- The Modern Worker Empowerment Act would adopt a new definition of an independent contractor in federal labor law that may not make it easy to treat research subjects who receive incentives for participating in market research as independent contractors.
- The Modern Worker Security Act would provide that determining independent contractor status would need to disregard whether the company that contracts with an individual provides them with a “portable benefit.”
- The Protecting the Right to Organize Act would, among many provisions, potentially lead to research subjects who receive incentives to be treated as employees of insights companies instead of as independent contractors, and subject to being organized into a union.
Census
The President signed a law continuing funding for the federal government for the remainder of Fiscal Year 2025 (FY25), denying the Census Bureau some necessary increases, but avoiding a government shutdown. The continuing resolution (CR) funds the federal government, including the Bureau, through September 30, 2025, at the same level as appropriated in FY24 (more or less).
Human Resources
The Freedom to Invest in Tomorrow’s Workforce Act (S. 756, H.R. 1151) would permit certain expenses associated with obtaining or maintaining postsecondary credentials (such as licenses, certifications, or certificates) to be treated as qualified higher education expenses for purposes of 529 tax savings accounts. The bills would transform college savings plans into career savings plans and boost the depth and proficiency of the insights workforce. IA continues to advocate for the Act.
Not just privacy: FTC nominee Mark Meador discussed the issue of non-compete agreements in employment contracts during his nomination hearing in the U.S. Senate.
Miscellaneous
On March 2, 2025, the U.S. Treasury Department pulled the plug on enforcement of the Corporate Transparency Act (CTA) and its beneficial ownership information (BOI) reporting requirements for small businesses.
With appreciation for your support
All the public policy threats to the insights industry across the United States would be an insurmountable challenge without advocacy from the Insights Association. We couldn’t counter them, nor find positive opportunities for advancement, without the sponsorship and support of our members, especially our company and corporate department members.
In other words, as we think of lambs and lions and March, our industry couldn’t roar without you!
We remain available to answer your questions and concerns on legislative/regulatory/legal issues. Please keep in contact.
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.