Overview of the American Data Privacy and Protection Act, H.R. 8152

Overview of the American Data Privacy and Protection Act, H.R. 8152

Legal Sidebari

Overview of the American Data Privacy and
Protection Act, H.R. 8152
Updated August 31, 2022
On July 20, 2022, the House Energy and Commerce Committee voted 53-2 to advance the American Data
Privacy and Protection Act (ADPPA), H.R. 8152, to the full House of Representatives. The ADPPA would
create a comprehensive federal consumer privacy framework. Some commentators have noted the bill’s
novel compromises on two issues that have impeded previous attempts to create a national privacy
framework: whether to preempt state privacy laws and whether to create a private right of action.
The bipartisan bill is co-sponsored by House Energy and Commerce Committee Chairman Frank Pallone,
Jr. and Ranking Member Cathy McMorris Rogers, and is promoted in the Senate by Commerce
Committee Ranking Member Roger Wicker. In a joint statement, Representatives Pallone and McMorris
Rodgers and Senator Wicker described the bill as “strik[ing] a meaningful balance” on key issues. Senate
Commerce Committee Chair Maria Cantwell has critiqued the ADPPA as having “major enforcement
holes,” prompting other commentators to question whether the Senate will pass the bill.
This Sidebar first provides a summary of the version of the ADPPA ordered to be reported by the House
Commerce Committee on July 20. It then compares several of the bill’s key provisions to other privacy
bills from the 117th and 116th Congresses before examining some considerations for Congress.
Summary of the Bill
The ADPPA would govern how companies across different industries treat consumer data. While not an
exhaustive summary, some key facets of the bill are as follows:
 Covered Entities. The bill would apply to most entities, including nonprofits and
common carriers. Some entities, such as those defined as large data holders that meet
certain thresholds and service providers that use data on behalf of other entities
(including covered entities, government entities, and other service providers), would face
different or additional requirements.
 Covered Data. The bill would apply to information that “identifies or is linked or
reasonably linkable” to an individual.
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 Duties of Loyalty. The bill would prohibit covered entities from collecting, using, or
transferring covered data beyond what is reasonably necessary and proportionate to
provide a service requested by the individual, unless the collection, use, or disclosure
would fall under one of seventeen permissible purposes. It also would create special
protections for certain types of sensitive covered data, defined as sixteen different
categories of data. Among other things, the bill would require covered entities to get a
consumer’s affirmative, express consent before transferring their sensitive covered data to
a third party, unless a specific exception applies.
 Transparency. The bill would require covered entities to disclose, among other things,
the type of data they collect, what they use it for, how long they retain it, and whether
they make the data accessible to the People’s Republic of China, Russia, Iran, or North
Korea.
 Consumer Control and Consent. The bill would give consumers various rights over
covered data, including the right to access, correct, and delete their data held by a
particular covered entity. It would further require covered entities to give consumers an
opportunity to object before the entity transfers their data to a third party or targets
advertising toward them.
 Youth Protections. The bill would create additional data protections for individuals under
age 17, including a prohibition on targeted advertising, and it would establish a Youth
Privacy and Marketing Division at the Federal Trade Commission (FTC). These
additional protections would only apply when the covered entity knows the individual in
question is under age 17, though certain social media companies or large data holders
would be deemed to “know” an individual’s age in more circumstances.
 Third-Party Collecting Entities. The bill would create specific obligations for third-party
collecting entities, which are entities whose main source of revenue comes from
processing or transferring data that they do not directly collect from consumers (e.g., data
brokers). These entities would have to comply with FTC auditing regulations and, if they
collect data above the threshold amount of individuals or devices, would have to register
with the FTC. The FTC would establish a searchable registry of third-party collecting
entities and a “Do Not Collect” mechanism by which individuals could request that all
registered entities refrain from collecting covered data relating to the individual.
 Civil Rights and Algorithms. The bill would prohibit most covered entities from using
covered data in a way that discriminates on the basis of protected characteristics (such as
race, gender, or sexual orientation). It would also require large data holders to conduct
algorithm impact assessments. These assessments would need to describe the entity’s
steps to mitigate potential harms resulting from its algorithms, among other requirements.
The bill would require large data holders to submit these assessments to the FTC and
make them available to Congress on request.
 Data Security: The bill would require a covered entity to adopt data security practices
and procedures that are reasonable in light of the entity’s size and activities. It would
authorize the FTC to issue regulations elaborating on these data security requirements.
 Small- and Medium-size Businesses: The bill would also relieve small- and medium-size
businesses that meet certain size and data-collection thresholds from complying with
several requirements. For instance, these businesses may respond to a consumer’s request
to correct their data by deleting the data, rather than correcting it, and are exempt from
most of the bill’s data security requirements.
 Enforcement. The bill would be enforceable by the FTC, under the agency’s existing
enforcement authorities, and by state attorneys general and state privacy authorities in

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civil actions. The bill also would give the California Privacy Protection Agency authority
to enforce the ADPPA in the “same manner it would otherwise enforce” California’s
privacy law, the California Consumer Privacy Act.
 Private right of action. The bill would create a delayed private right of action starting
two years after the law’s enactment. Injured individuals, or classes of individuals, would
be able to sue covered entities in federal court for damages, injunctions, litigation costs,
and attorneys’ fees. Individuals would have to notify the FTC or their state attorney
general before bringing suit. Before bringing a suit for injunctive relief or a suit against a
small- or medium-size business, individuals would be required to give the violator an
opportunity to address the violation. The bill also would render pre-dispute arbitration
agreements or joint-action waivers with individuals under the age of 18 unenforceable in
disputes arising under the ADPAA.
 Preemption. The bill would generally preempt any state laws that are “covered by the
provisions” of the ADPPA or its regulations, although it would expressly preserve sixteen
different categories of state laws, including consumer protection laws of general
applicability and data breach notification laws. It would also preserve several specific
state laws, such as Illinois’ Biometric Information Privacy Act and Genetic Information
Privacy Act and California’s private right of action for victims of data breaches.
Comparison to Other Privacy Legislation
The ADPPA is, in many ways, similar to a number of other consumer privacy bills introduced in the 116th
and 117th Congresses. It differs from earlier bills, however, in two key ways: it both contains a private
right of action and generally preempts state laws, including comprehensive privacy laws enacted by
California, Colorado, Connecticut, Utah, and Virginia. In addition, the ADDPA does not include a blanket
restriction on engaging in “harmful” data practices to the detriment of end users, in contrast to the “duty
of loyalty” contained in Senator Cantwell’s Consumer Online Privacy Rights Act (COPRA), S. 3195, or
Senator Brian Schatz’s Data Care Act of 2021, S. 919.
Tables 1 and 2 compare the ADPPA to the following bills from the 117th Congress:
 COPRA;
 The Data Care Act of 2021;
 The Online Privacy Act of 2021 (OPA), H.R. 6027; and
 The Control Our Data Act (CODA), a discussion draft released by the Republican
members of the House Energy and Commerce Committee in November 2021.
Table 1 examines the individual rights and obligations created by each bill, while Table 2 compares the
bills’ enforcement mechanisms and whether each bill would preempt state privacy laws. For more
information on versions of COPRA and the OPA introduced in the 116th Congress, see CRS Legal Sidebar
LSB10441, Watching the Watchers: A Comparison of Privacy Bills in the 116th Congress.
Table 1. Comparison of Enforcement Mechanisms and Preemption

ADPPA
COPRA
Data Care Act
OPA
CODA
Enforcement

Federal Agency
New Digital
Enforcement
FTC (§ 401)
FTC (§ 301(a))
FTC (§ 4(a))
Privacy Agency
FTC (§ 113(a))
(Tits. III and IV)

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ADPPA
COPRA
Data Care Act
OPA
CODA
State Attorneys
General
Yes (§ 402)
Yes (§ 301(b))
Yes (§ 4(b))
Yes (§ 404)
Yes (§ 113(b))
Yes, with two-
Private Right of
year phase-in
Yes (§ 301(c))
Silent
Yes (§ 405)
No (§ 113(f))
Action
(§ 403)
Yes, if state laws
State Law
Yes, with
afford less
Preemption
exceptions
protection
No (§ 6(1))
Silent
Yes (§ 112(a))
(§ 404(b))
((§ 302(c))
Source: CRS, based on information in the ADDPA, COPRA, Data Care Act, OPA, and CODA.
Table 2. Comparison of Rights and Obligations

ADPPA
COPRA
Data Care Act
OPA
CODA
Individual Rights

Access
§ 203(a)(1)
§ 102(a)
Silent
§ 101
§ 102(c)(1)(B)
Correction
§ 203(a)(2)
§ 104
Silent
§ 102
§ 102(c)(1)(C)
Deletion
§ 203(a)(3)
§ 103
Silent
§ 103
§ 102(c)(1)(D)
Opt Out
§ 204
§ 105(b)
Silent
§ 208(b)
§ 102(c)(1)(E)
Portability
§ 203(a)(4)
§ 105(a)
Silent
§ 104
Silent
Obligations

Notice
§ 202(e)
§ 102(b)
Silent
§ 210
§ 102(b)
Affirmative Consent
for Sensitive Info.
§ 102(a)(3)(A)
§ 105(c)
Silent
§ 210
§ 103
Privacy Policy
§ 202(a)
§ 102(b)
Silent
§ 211
§ 102(a)
Minimization
§ 101
§ 106
Silent
§§ 201-202
§§ 104-105
Data Security
§ 208
§ 107
§ 3(b)(1)(A)
§ 212
§ 109
Breach Notices
Silent
Silent
§ 3(b)(1)(B)
§ 213
Silent
Source: CRS, based on information in the ADPPA, COPRA, Data Care Act, OPA, and CODA.
Considerations for Congress
The ADPPA has bipartisan support, and various interest groups and commentators, such as the Electronic
Privacy Information Center, the Center for Democracy & Technology, and the Washington Post’s editorial
board, have expressed enthusiasm for the bill. In an August 25 letter to House Speaker Nancy Pelosi,
forty-eight different public interest groups urged Congress to move the ADPPA forward through
Congress, stating that the bill is a “meaningful compromise” and that a failure to act may “forestall
progress on this issue for years to come.” At the same time, some Members of Congress and other
commentators have raised concerns with the bill. Senators Cantwell and Schatz, for example, have both
criticized the bill’s failure to impose a “duty of loyalty” on covered entities. While the ADPPA has
various requirements that are classified under a “Duty of Loyalty” heading, these requirements differ
from those included in COPRA or the Data Care Act. COPRA’s “duty of loyalty” would prohibit
businesses from engaging in “harmful” data practices, which the bill defines to mean using covered data

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“in a manner that causes or is likely to cause” injury to the subject of the covered data. The Data Care
Act’s “duty of

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loyalty” would prohibit covered providers from using data in a way that would “benefit the [provider] to
the detriment of the end user” and would “result in reasonably foreseeable and material physical harm” or
“be unexpected and highly offensive” to the end user. The ADPPA’s “Duty of Loyalty” imposes a data
minimization requirement and defines several specific prohibited data practices, but it does not broadly
prohibit providers from acting in ways that could harm individuals.
Some have also raised concerns over the ADPPA’s preemption provisions. The Attorney General of
California sent Congress a letter co-signed by nine other state attorneys general criticizing the ADPPA
because it would set a “ceiling” for privacy rights rather than a “floor.” These state attorneys general
argue that states should be allowed to adopt their own privacy laws so they can “legislate responsively” to
changes in technology and practices. In the Commerce Committee’s July 20 markup of the ADPPA, some
Members expressed similar concerns over the ADPPA’s preemption of state law. Other Members and
commentators have pushed back on these criticisms, pointing to the strengths of the ADPPA’s protections
and the importance of setting a federal standard.

Author Information

Jonathan M. Gaffney
Chris D. Linebaugh
Legislative Attorney
Legislative Attorney

Eric N. Holmes

Legislative Attorney

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