Signed DCUC Letter to Energy & Commerce Committee Hearing, American Privacy Rights Act of 2024

Today, the Defense Credit Union Council (DCUC) sent a letter to the Honorable Cathy McMorris Rodgers, Chair, and the Honorable Frank Pallone, Ranking Member, of the House Committee on Energy and Commerce, expressing its concerns with the proposed “American Privacy Rights Act of 2024.”

On April 11, 2024, DCUC first raised its concerns to Congress about this proposed legislation in letters to both the House Committee on Energy and Commerce and the House Financial Services Committee. Similar letters were also sent to the respective Senate committees.

While DCUC remains supportive of efforts to enhance data privacy and prevent the buying and selling of personal information, the Council voiced its concerns about the proposed legislation’s contradictions with other federal privacy laws such as the Gramm-Leach-Billey Act (GLBA) and the Health Insurance Portability and Accountability Act (HIPAA).

“Other than data security, it is unclear whether credit unions already in compliance with these laws will be exposed to new lawsuits despite GLBA compliance,” stated Jason Stverak, DCUC Chief Advocacy Officer.“Additionally, we are concerned about the expansion scope and legal uncertainties that would arise from the adoption of the individual right of action proposed by the legislation.”

DCUC continued by emphasizing the need for clarity on whether the legislation will impose comparable data security standards on merchants as it does on financial institutions.

“Merchants have a larger role in safeguarding data as consumers have fewer opportunities to opt out when purchasing goods and services. Overall, the American Privacy Rights Act has the potential to create market uncertainty, particularly in educating consumers about their rights to opt out of data collection.”