cheryl
Administrator
Staff member
How Privacy Regulation Can Emerge from the Data Dark Ages - FEE
When regulations seek consumer protection at all costs, they’ll always limit data access.
Data privacy in the United States isn’t in a good place. As it stands, it’s a confusing system that’s failing to ensure consumer protection, economic competitiveness, and the incentive to innovate. But as the 116th Congress begins to set out its agenda, data use and regulation will certainly be a high priority, and lawmakers should try out something that works for everyone involved.
Data Regulations
The data privacy regime of the United States is one that’s made up of varying state privacy laws—like the draconian California Consumer Privacy Act—with industry-specific federal regulations. As a result of various competing obligations, compliance costs are high, especially for industries under more onerous obligations. In a data-driven economy, this effectively acts as a form of protectionism where highly regulated industries suffer, as evidenced by the slower pace of innovation in health care and education.
Where an industry has no regulation, self-regulation is bound to happen. So it’s no surprise that the information technology sector, which has historically been very lightly regulated, has proven to be the most innovative in the United States. But recent innovations such as big data analytics, artificial intelligence, and cloud computing are increasing across industries, and ensuring a level playing field is essential to ensuring these technologies result in widespread economic growth.
When regulations seek consumer protection at all costs, they’ll always limit data access.
Data privacy in the United States isn’t in a good place. As it stands, it’s a confusing system that’s failing to ensure consumer protection, economic competitiveness, and the incentive to innovate. But as the 116th Congress begins to set out its agenda, data use and regulation will certainly be a high priority, and lawmakers should try out something that works for everyone involved.
Data Regulations
The data privacy regime of the United States is one that’s made up of varying state privacy laws—like the draconian California Consumer Privacy Act—with industry-specific federal regulations. As a result of various competing obligations, compliance costs are high, especially for industries under more onerous obligations. In a data-driven economy, this effectively acts as a form of protectionism where highly regulated industries suffer, as evidenced by the slower pace of innovation in health care and education.
Where an industry has no regulation, self-regulation is bound to happen. So it’s no surprise that the information technology sector, which has historically been very lightly regulated, has proven to be the most innovative in the United States. But recent innovations such as big data analytics, artificial intelligence, and cloud computing are increasing across industries, and ensuring a level playing field is essential to ensuring these technologies result in widespread economic growth.