Online Consumer Data Collection and Data Privacy

Online Consumer Data Collection and Data Privacy

Online Consumer Data Collection
October 31, 2022
Large amounts of consumer data can be collected, processed, and analyzed by operators of
websites and mobile applications (apps) and third parties, which are entities other than the
Clare Y. Cho
website or app primary operator (e.g., data brokers). Operators collect data for multiple purposes,
Analyst in Industrial
including providing services, selling user data to third parties, or sending targeted ads directed to
Organization and Business
specific individuals .

Kristen E. Busch
The value of consumer data often comes from identifying users and linking their data from
Analyst in Science and
various sources to a common identifier. Operators can identify individuals using their personally
Technology Policy
identifiable information (PII)—such as name, address, or date of birth—and other identifiers,

such as those associated with a particular device. Some federal laws prevent entities from
collecting or sharing specific types of PII or identifiers in certain circumstances. However, in

recent decades, the ubiquity of non-PII (data not directly linked to an individual’s identity,
including anonymized or aggregated data) and the emergence of new data collection and tracking tools have made it easier to
identify individuals.
Consumer data can be collected using various data collection and tracking tools, such as cookies, pixels, device and browser
fingerprinting, application programming interfaces (APIs), and software development kits (SDKs). These tools can
continuously collect different types of data, including identifiers, even when the consumer visits a different website or app.
Some of these tools are necessary for websites and apps to provide services, and others typically are used for online
advertising. Some of these tools can be used to help develop a website or app and offer services provided by other operators,
which can increase competition. They also can be used to collect large amounts of data, particularly by third parties, causing
some to raise consumer data privacy concerns.
Although some intermediaries—such as web browsers and operating systems —offer anti-tracking tools allowing users to
limit the data collected by websites, apps, and third parties, they can also make it difficult for individuals to access these
tools. Most web browsers offer “private browsing” or “incognito” modes that allow users to refuse cookies , and some
browsers ban third-party cookies. Apple released an iPhone operating system update that requires apps to ask for permission
before tracking user activity. Google has restricted access to a consumer identifier in its advertising (ad) network and banned
certain ad blocking apps, some of which were reinstated, from its app store. Intermediaries such as these may be able to
obtain a competitive advantage if they are able to collect data that others cannot access.
The United States does not have a comprehensive federal data protection law, although multiple federal statutes create data
protection obligations for particular types of information or for entities engaged in certain activities. For example, the
Children’s Online Privacy Protection Act (COPPA, 15 U.S.C. §§6501-6506) requires online services directed to children
under 13 years of age that collect personal information to notify users about the data collection, receive parental consent, and
maintain “reasonable procedures” to protect the data. COPPA is enforced by the Federal Trade Commission (FTC), which
has brought enforcement actions against companies for their consumer data collection practices under its authority to prevent
“unfair or deceptive acts or practices in or affecting commerce.” For example, it has taken action against companies for
allegedly handling personal information in a way that contradicts their privacy policies. The FTC is also considering whether
it will implement new rules on data collection and security to protect consumers’ data and privacy.
A comprehensive federal data protection law may have differential effects. For example, prohibiting the collection of
consumer data would provide the highest level of data security but could also prevent some operators from providing their
services or degrade the quality of their services. Prohibiting the transfer or sale of consumer data might provide some data
protection, depending on the operators that consumers are willing to share their data with, but could also further entrench
incumbents that have already collected large amounts of consumer data. Increasing transparency on the collection and use of
consumer data—particularly if doing so would heighten public scrutiny of the operator—might incentivize operators to adjust
their current practices but might not significantly alter operators’ behavior if consumers continue to use the website or app.
Some Members of the 117th Congress have introduced bills to create a comprehensive data protection law. If Congress
chooses to pursue legislative action, it may consider (1) if the legislation would broadly address consumer data collection or
focus on specific types of data; (2) whether to implement requirements for operators or allow consumers to determine which
entities can receive their data; (3) if the legislation would preempt state laws; (4) whether to include a private right of action;
and (5) potential unintended effects.
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Contents
Introduction ................................................................................................................... 1
How Consumer Data Is Collected Online ............................................................................ 2
Identifying and Linking Consumer Data........................................................................ 3
Personal y Identifiable Information ......................................................................... 3
Persistent Identifiers ............................................................................................. 4
Selected Data Collection and Tracking Tools ................................................................. 5
Cookies .............................................................................................................. 7
Tracking Pixels .................................................................................................... 7
Device and Browser Fingerprinting ......................................................................... 9
Application Programming Interfaces ....................................................................... 9
Software Development Kits ................................................................................. 10
Anti-tracking Tools from Intermediaries ........................................................................... 11
Federal Trade Commission Enforcement of Consumer Data Collection ................................. 14
Potential Effects of Consumer Data Protection Requirements............................................... 16
Prohibit the Collection of Consumer Data ................................................................... 16
Prohibit the Transfer or Sale of Consumer Data ............................................................ 17
Increase Transparency on the Collection and Use of Consumer Data ............................... 18
Policy Considerations for Congress.................................................................................. 18

Figures
Figure 1. Overview of Selected Data Collection and Tracking Tools........................................ 6

Contacts
Author Information ....................................................................................................... 22

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Introduction
Over the past few decades, developments in information and communication technologies have
enabled operators of websites and mobile applications (apps) and third parties to collect, process,
and analyze large amounts of consumer data.1 These developments have led to new products and
services that collect and provide real-time information, including navigation services that update
users with current traffic conditions and suggest faster routes; health-related services that can
track physical activity or help users determine whether they are ovulating; and finance-related
services that can help users analyze their spending habits.
Website and app operators may collect user data for multiple purposes, such as providing or
improving their services, sel ing user data to third parties, or sending targeted advertisements.2
Some data collection may benefit consumers when, for example, it al ows consumers to access
services at a cheaper price or for free. However, some consumers may be unaware that their data
are collected and how that data are used.
The United States does not have a comprehensive federal data protection law, although multiple
federal statutes create data protection obligations for particular types of information or for entities
engaged in certain activities.3 Some Members of the 117th Congress have introduced bil s to
create a comprehensive data protection law,4 and five states have implemented their own
comprehensive consumer data protection laws.5 In October 2022, the White House Office of
Science and Technology Policy (OSTP) released Blueprint for an AI Bill of Rights,6 which
includes recommended data privacy protections for al Americans.7 Although OSTP does not have
regulatory or enforcement authority, it notes, “where law or policy does not already provide
guidance, the Blueprint should be used to inform policy-making to fil those gaps.”8

1 In this report, consumer data includes any data about an individual, including personally identifiable information
(PII), demographic data, behavioral data (e.g., search history, buttons clicked on a website), and purchase data.
Operator is used to describe the entity—such as a firm, nonprofit organization, or individual—that controls and
operates the website or app. Third parties are entities other than the primary operator of the website or app ; see text box
in “Identifying and Linking Consumer Data.”
2 In this report, targeted ads are ads sent to a specific individual using their data. For more information about targeted
advertising, see Organisation for Economic Co-operation and Development , Com petition in Digital Advertising
Markets, 2020, at https://www.oecd.org/daf/competition/competition-in-digital-advertising-markets-2020.pdf; and Yan
Lau, A Brief Prim er on the Econom ics of Targeted Advertising , Federal T rade Commission (FT C), January 2020, at
https://www.ftc.gov/system/files/documents/reports/brief-primer-economics-targeted-advertising/
economic_issues_paper_-_economics_of_targeted_advertising.pdf.
3 CRS Report R45631, Data Protection Law: An Overview, by Stephen P. Mulligan and Chris D. Linebaugh.
4 For example, see the American Data Privacy and Protection Act (H.R. 8152) and the Consumer Online Privacy Rights
Act (S. 3195). For comparisons of some of these bills, see CRS Legal Sidebar LSB10776, Overview of the Am erican
Data Privacy and Protection Act, H.R. 8152, by Jonathan M. Gaffney, Eric N. Holmes, and Chris D. Linebaugh .
5 T he five states are California, Colorado, Connecticut, Utah, and Virginia.
6 White House, Office of Science and T echnology Policy (OST P), “Blueprint for an AI Bill of Rights: Making
Automated Systems Work for the American People,” October 4, 2022, at https://www.whitehouse.gov/ostp/ai-bill-of-
rights/.
7 White House, OST P, “Blueprint for an AI Bill of Rights: Data Privacy,” October 4, 2022, at
https://www.whitehouse.gov/ostp/ai-bill-of-rights/data-privacy-2/.
8 White House, “ FACT SHEET : Biden-⁠Harris Administration Announces Key Actions to Advance T ech
Accountability and Protect the Rights of the American Public,” October 4, 2022, at https://www.whitehouse.gov/ostp/
news-updates/2022/10/04/fact-sheet-biden-harris-administration-announces-key-actions-to-advance-tech-
accountability-and-protect-the-rights-of-the-american-public/.
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This report provides a brief overview of methods for consumer data collection on websites and
mobile apps.9 It then discusses some efforts to limit consumer data collection and considers the
potential effects of a comprehensive federal data protection law on website and app operators,
which may be applicable to other types of data collection as wel .
How Consumer Data Is Collected Online
Each day, individuals interact with digital technologies that collect vast amounts of their data—
including self-reported personal information and online behavioral data—without their
knowledge. Website and mobile app operators, as wel as third parties (see text box), use these
data to make inferences and decisions, inform machine learning models, and build detailed user
profiles for targeted advertising or personalized content, among other purposes. This section
discusses some of the tools used to collect consumer data and track individuals online.
Sources of Data Collection: First vs. Third Party
In this report, first-party data refers to data that the primary operator of a website or app col ects directly from its
users.10 Some first-party data may be self-reported, that is, actively provided by the individual creating an account
(e.g., name, age) or uploading content. Third-party data is col ected by entities other than the primary operator of a
website or app.11 Some data col ection tools can blur the distinction between first and third parties. For example,
some providers of online advertising (ad) services embed code on websites that use their services; the ad service
would be considered a third party in this report because it is not the website’s primary operator.
First- and third-party data col ection can raise different concerns. First-party data may be col ected without a
user’s express consent or knowledge; this is nearly always the case with third-party data unless the user resides in
a state or country that requires entities to obtain consumer consent.12 Additional y, some website and app
operators might supplement their first-party data with third-party data. For example, an operator might purchase
or exchange user data with third parties; a firm could also acquire another firm to obtain its consumer data.
Nearly al of the most popular apps and websites provide data to third parties. One study found that the top one
mil ion websites send data to at least 34 third parties on average.13 Another study found that nearly one mil ion

9 T his report does not discuss data collected by internet service providers (ISPs) or other internet-connected devices,
such as smart devices, that may present similar data privacy concerns. For more information, see FT C, A Look At What
ISPs Know About You: Exam ining the Privacy Practices of Six Major Internet Service Providers, Staff Report, October
21, 2021, at https://www.ftc.gov/reports/look-what -isps-know-about -you-examining-privacy-practices-six-major-
internet -service-providers; CRS In Focus IF11239, The Internet of Things (IoT): An Overview, by Patricia Moloney
Figliola; and CRS Report R44227, The Internet of Things: Frequently Asked Questions, by Patricia Moloney Figliola.
10 Some data protection regulations use different terms for first -party data collection. For example, the European
Union’s (EU’s) General Data Protection Regulation (GDPR) uses the terms controller and processor for data collection
methods that would be considered first party in this report. See Article 4(7, 8) of the GDPR, at https://gdpr-info.eu/art-
4-gdpr/.
11 T he EU’s GDPR defines third party as “a natural or legal person, public authority, agency or body other than the
data subject, controller, processor and persons who , under the direct authority of the controller or processor, are
authorised to process personal data.” See Article 4(10) of the GDPR, at https://gdpr-info.eu/art-4-gdpr/.
12 For example, the EU’s GDPR requires the controller to demonstrate that the data subject has consented to processing
of his or her personal data. For the definition of consent, see Article 4(11) of the GDPR, at https://gdpr-info.eu/art-4-
gdpr/. For the definition of conditions for consent, see Article 7 of the GDPR, at https://gdpr-info.eu/art-7-gdpr/.
13 Steven Englehardt and Arvind Narayanan, “Online T racking: A 1 -Million-Site Measurement and Analysis,”
presented at the 23rd ACM SIGSAC Conference on Computer and Communications Security , Vienna, Austria, October
2016, at https://doi.org/10.1145/2976749.2978313 (Englehardt and Narayanan, “ Online Tracking”).
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mobile apps send data to 10 third parties on average.14 Google and Meta (formerly Facebook)15 dominate third-
party data col ection. A 2018 study of nearly one mil ion apps available on the Google Play Store found that
Google’s trackers were present in more than 88% of al apps and Facebook’s trackers in more than 42% of al
apps.16 Additional y, according to some estimates, Google Analytics trackers are present on approximately 75% of
the top 100,000 websites.17
Data brokers—entities that col ect, compile, and sel consumer data—rely primarily on third-party data.18 The
federal government does not regulate data brokers as an industry. However, two states—Vermont and
California—have passed laws that implement requirements for data brokers, such as registering with the
respective state annual y.19 Data brokers offer services—including direct marketing, marketing analytics, identity
verification, fraud detection, and people searches—to clients in various industries. They col ect data from clients,
publicly available sources, commercial sources, and online tracking—often for a particular industry or niche
market—and trade data with other data brokers to obtain a wide range of data. Data brokers may col ect data
across services and entities, de-anonymize the data, and link it to specific users using a variety of methods.
Identifying and Linking Consumer Data
The value of consumer data often comes from identifying users and combining their data from
various sources. This is possible, in part, through the ubiquity of personal y identifiable
information (PII) and unique identifiers, as wel as identifying individuals from non-PII, such as
aggregated or anonymized data. The ability to identify users enables website and app operators to
combine data and track user activity across devices.20
Personally Identifiable Information
PII is “information that can be used to distinguish or trace an individual’s identity, either alone or
when combined with other information that is linked or linkable to a specific individual.”21
Examples of PII include names, addresses, dates of birth, telephone numbers, Social Security

14 Reuben Binns et al., “T hird Party T racking in the Mobile Ecosystem,” presented at the 10 th ACM Conference on
Web Science, Amsterdam, Netherlands, May 2018, at https://doi.org/10.1145/3201064.3201089 (Binns et al., “ T hird
Party T racking”).
15 On October 28, 2021, CEO Mark Zuckerberg announced that Facebook, Inc. would be renamed Meta Platforms, Inc.
to reflect the company’s focus on the metaverse (see Meta, “Introducing Meta: A Social T echnology Company,”
October 28, 2021, at https://about.fb.com/news/2021/10/facebook-company-is-now-meta/). For more information about
the metaverse, see CRS Report R47224, The Metaverse: Concepts and Issues for Congress, by Ling Zhu.
16 T he study on Google’s trackers included its advertising services DoubleClick, Admob, and Adsense, and the study
on Facebook’s trackers included Facebook, Liverail, and Lifestreet. See Binns et al., “T hird Party T racking.”
17 U.K. Competition and Markets Authority (CMA), “ Appendix F: T he Role of Data in Digital Advertising,” Online
Platform s and Digital Advertising, last updated July 1, 2020.
18 For a more in-depth discussion of selected data brokers, see FT C, Data Brokers: A Call for Transparency and
Accountability, May 2014, at https://www.ftc.gov/system/files/documents/reports/data-brokers-call-transparency-
accountability-report-federal-trade-commission-may-2014/140527databrokerreport.pdf.
19 9 V.S.A. §§2446, 2447; see Vermont General Assembly, “T he Vermont Statutes Online,” at
https://legislature.vermont.gov/statutes/section/09/062/02446. T itle 1.81.48; see CaseT ext, California Civil Code, at
https://casetext.com/statute/california-codes/california-civil-code/division-3-obligations/part-4-obligations-arising-
from-particular-transactions/title-18148-data-broker-registration.
20 Consumer Council of Norway, Out of Control: How Consumers Are Exploited by the Online Advertising Industry,
January 14, 2020, at https://fil.forbrukerradet.no/wp-content/uploads/2020/01/2020-01-14-out-of-control-final-
version.pdf.
21 Paul A. Grassi, Michael E. Garcia, and James L. Fenton, Digital Identity Guidelines, National Institute of Standards
and T echnology (NIST ), Special Publication 800 -63-3, June 2017, at https://doi.org/10.6028/NIST .SP.800-63-3.
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numbers, precise location information, and biometrics.22 Multiple federal statutes regulate the use
of specific types of PII in certain circumstances.23
The proliferation of non-PII and its widespread collection have raised additional privacy
concerns. For the purposes of this report, non-PII is al other kinds of data not directly linked to
an individual’s identity, including anonymized or aggregated data. The emergence of new data
tracking tools, data analysis, and statistical techniques in recent decades has made it possible to
identify individuals with a high degree of accuracy from non-PII.24 For example, one study found
that four approximate location data points are sufficient to identify 95% of individuals in a dataset
of one and a half mil ion people.25 The Federal Trade Commission (FTC) has said, “the traditional
notion of what constitutes PII versus non-PII is becoming less and less meaningful and should
not, by itself, determine the protections provided for consumer data.”26
Persistent Identifiers
In the context of online tracking, a persistent identifier—also cal ed unique identifier—links a
specific device or user with a unique ID.27 A persistent identifier can detect a specific device or
user across different websites or online services and target content or advertisements to specific
users. Companies may also use persistent identifiers to share and combine user data with one
another. Some persistent identifiers may be necessary to provide certain online services or
functionalities, such as retaining unpurchased items in an online shopping cart. Persistent
identifiers are intended to be long-lasting and track users over time. Some may reset or expire
after a certain period, while others can identify users over a number of years.
Examples of persistent identifiers include device identifiers, such as Media Access Control
(MAC) addresses,28 and web-based identifiers, such as IP addresses;29 third parties can also assign
their own identifiers to users.30 Mobile advertising IDs (MAIDs) are popular persistent identifiers

22 While PII typically includes these forms of data, it may include other types of data. Shaun Donovan, Preparing for
and Responding to a Breach of Personally Identifiable Inform ation , Executive Office of the President, Office of
Management and Budget, M-17-12, January 3, 2017, at https://obamawhitehouse.archives.gov/sites/default/files/omb/
memoranda/2017/m-17-12_0.pdf.
23 For example, the Gramm-Leach-Bliley Act prohibits financial institutions from sharing “nonpublic personal
information,” and the Health Insurance Portability and Accountability Act prohibits “covered entities” from using or
sharing “protected health information,” which includes “individually identifiable health information.” For more
information about these laws, see CRS Report R45631, Data Protection Law: An Overview, by Stephen P. Mulligan
and Chris D. Linebaugh.
24 Paul Ohm, “Broken Promises of Privacy: Responding to the Surprising Failure of Anonymization,” UCLA Law
Review, vol. 57 (2010), at https://www.uclalawreview.org/pdf/57-6-3.pdf.
25 Yves-Alexandre de Montjoye et al., “Unique in the Crowd: T he Privacy Bounds of Human Mobility,” Scientific
Reports, vol. 3, no. 1376 (March 25, 2013), at https://www.nature.com/articles/srep01376.
26 FT C, Self-Regulatory Principles For Online Behavioral Advertising, Staff Report, February 2009, at
https://www.ftc.gov/sites/default/files/documents/reports/federal-trade-commission-staff-report-self-regulatory-
principles-online-behavioral-advertising/p085400behavadreport.pdf (FT C, Self-Regulatory Principles).
27 Persistent identifiers may also refer to long-lasting references to digital resources, often used in library science and
archival research.
28 A Media Access Control (MAC) address is a long string of numbers and letters that uniquely identifies every device
connected to a network and typically does not change.
29 An IP address is a numerical identifier assigned to a computer or device that connects to the Internet. IP addresses
can be used for location tracking by linking an individual IP address to a particular device that is associated with a
specific individual. See FT C, Self-Regulatory Principles.
30 Farhad Manjoo, “I Visited 47 Sites. Hundreds of T rackers Followed Me,” New York Times, at
https://www.nytimes.com/interactive/2019/08/23/opinion/data-internet-privacy-tracking.html.
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consisting of a long string of numbers and letters that uniquely identify a user’s mobile device
through its operating system.31 Apple’s iPhone operating system (iOS) uses an “Identifier for
Advertisers” (IDFA) as its MAID, and Google’s mobile operating system (Android) uses “Google
Advertising ID.”32 MAIDs enable targeted ads to be sent to a specific device based on data
collected about the user. Some data brokers have also used MAIDs to identify and sel user data,
linking MAIDs to PII or other persistent identifiers.33
Persistent identifiers can constitute PII in certain circumstances. For example, in 2013, the FTC
published an amended rule adding “persistent identifier” to the definition of personal information
in the Children’s Online Privacy Protection Act (COPPA).34 In 2016, then-FTC Chair Edith
Ramirez stated, “as a result of the increased ability to identify consumers, we now regard data as
personal y identifiable when it can be reasonably linked to a particular person, computer, or
device. In many cases, persistent identifiers, such as device identifiers, MAC addresses, static IP
addresses, and retail loyalty card numbers meet this test.”35
Selected Data Collection and Tracking Tools
Website and app operators use various tools to collect consumer data. Some of these tools can
continuously collect data, even when the user visits a different website or app.
This section discusses selected examples of data collection tools, including cookies, pixels,
fingerprinting, application programming interfaces (APIs), and software development kits
(SDKs). Figure 1 provides an overview of these tools. This list is il ustrative, not exhaustive.36
Each tool can collect various types of data, including persistent identifiers.

31 NIST defines an operating system as “a program that runs on a computer and provides a software platform on which
other programs can run.” Karen Kent et al., Guide to Integrating Forensic Techniques into Incident Response, NIST ,
Special Publication 800-86, August 2006, at https://nvlpubs.nist.gov/nistpubs/Legacy/SP/nistspecialpublication800-
86.pdf.
32 Bennett Cyphers and Gennie Gebhart, “Behind the One-Way Mirror: A Deep Dive Into the T echnology of Corporate
Surveillance,” Electronic Frontier Foundation (EFF), December 2, 2019, at https://www.eff.org/wp/behind-the-one-
way-mirror (Cyphers and Gebhart, “ Behind the One-Way Mirror”). Google Advertising ID has also been referred to as
Android Advertising ID.
33 Joseph Cox, “ Inside the Industry T hat Unmasks People at Scale,” Motherboard: Tech by Vice, July 14, 2021, at
https://www.vice.com/en/article/epnmvz/industry-unmasks-at-scale-maid-to-pii.
34 FT C, “Children’s Online Privacy Protection Rule,” 78 Federal Register 3972-4014, January 17, 2013, at
https://www.ftc.gov/system/files/2012-31341.pdf. T he Children’s Online Privacy Protection Act (COPPA) created
notice, consent, and security requirements for data collected by operators of online services directed to children under
13 years of age (15 U.S.C. §§6501-6506).
35 FT C Chairwoman Edith Ramirez, “Protecting Consumer Privacy in the Digital Age: Reaffirming the Role of
Consumer Control,” keynote address presented at the T echnology Policy Institute Aspen Forum, Aspen, CO, August
22, 2016, at https://www.ftc.gov/system/files/documents/public_statements/980623/ramirez_-
_protecting_consumer_privacy_in_digital_age_aspen_8-22-16.pdf.
36 For example, this report does not discuss data collection through device sensors, such as motion or light sensors.
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Figure 1. Overview of Selected Data Collection and Tracking Tools

Source: Congressional Research Service.
Notes: APIs = application programming interfaces; SDKs = software development kits; and VPNs = virtual private networks.
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Online Consumer Data Collection

Cookies
A cookie is a smal information file stored on a user’s device when a user visits a website.37
Cookies can store a wide range of information, including a persistent identifier known as a cookie
ID.38 The lifetime of a cookie can vary; some cookies are deleted as soon as the user leaves a
website, while others remain on the user’s device for a predetermined amount of time.
First-party cookies—created by a website visited by a user—can be used to personalize a
website’s features and may be necessary to provide certain services.39 For example, a first-party
cookie might save a user’s preferred language setting or unpurchased items in a shopping cart.
Data privacy concerns have focused primarily on third-party cookies, also cal ed tracking
cookies, which are created by an entity other than the operator of the website a user is visiting.40
For example, if a user visits a website using a third-party advertising (ad) network, the third party
can place cookies on the user’s browser. Third-party cookies enable advertisers and websites to
track user behavior and build user profiles in order to serve personalized ads.
Many websites serve ads from different ad networks, meaning multiple third parties can use and
compare their cookies by combining data using cookie IDs.41 This process, known as “cookie
syncing,” enables third parties that track users’ online activities to merge data without users’
knowledge.42 Some studies have found that the majority of such third parties are involved in
cookie syncing.43
Tracking Pixels
A tracking pixel—also cal ed a pixel, marketing pixel, image tag, or tracking code—is a smal
piece of code that an operator can add to its website to collect and send data to a third party,
typical y an ad network that provides the pixel code. The code creates an “image” the size of a
single pixel, the smal est unit of a digital image or graphic, that is not visible to users.44 When a
user visits a web page, their actions automatical y trigger the pixel to send data to the pixel
provider’s servers. Pixels can be embedded in websites, ad banners, and emails.
Typical y, Pixels are used for online advertising to collect data on each website user, including
user behavior, such as clicks or searches, IP address, and device model and browser information.

37 Mozilla, “Cookies - Information that Websites Store on Your Computer,” at https://support.mozilla.org/en-US/kb/
cookies-information-websites-store-on-your-computer; and CloudFlare, “ What Are Cookies? Cookies Definition,” at
https://www.cloudflare.com/learning/privacy/what -are-cookies/.
38 Ibid.; and FT C, “Internet Cookies,” at https://www.ftc.gov/policy-notices/privacy-policy/internet-cookies.
39 Aaron Cahn et al., “An Empirical Study of Web Cookies,” presented at the 25th International World Wide Web
Conference, Montréal, Québec, Canada, 2016, pp. 891-901, at https://doi.org/10.1145/2872427.2882991.
40 Steven Englehardt et al., “Cookies T hat Give You Away: T he Surveillance Implications of Web T racking,”
presented at the 24th International World Wide Web Conference, Florence, Italy, May 2015, at https://doi.org/10.1145/
2736277.2741679.
41 Cyphers and Gebhart, “Behind the One-Way Mirror.”
42 Steven Englehardt and Arvind Narayanan, “Online T racking.”
43 Ibid.
44 T echopedia, “Pixel,” last updated August 31, 2020, at https://www.techopedia.com/definition/24012/pixel. For the
remainder of this report, references to “pixel” are “tracking pixels.” “What Is a T racking Pixel and Can Strangers
Really Spy on me T hrough Email?,” The Verge, July 3, 2019, at https://www.theverge.com/2019/7/3/20681508/
tracking-pixel-email-spying-superhuman-web-beacon-open-tracking-read-receipts-location.
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Online Consumer Data Collection

Data are sent to the provider of the tracking pixel (e.g., Meta Pixel, TikTok Pixel),45 which can be
used to target ads to specific users and obtain metrics on the efficacy of ads.
Pixels are often used in combination with other data collection and tracking tools, such as first-
and third-party cookies. For example, Meta has stated that its pixel relies on Facebook cookies,
which enable Meta to match a company’s website visitors to their respective Facebook
accounts.46 Additional y, if Meta Pixel is present on a website, Meta can then place a first-party
cookie on the user, expanding its data collection tools.47 Web browsers cannot disable pixels
easily, unlike cookies, because they send data directly to the pixel provider’s servers.
In recent years, pixels have become increasingly popular as an alternative to tracking cookies. In
2018, Meta CEO Mark Zuckerberg testified that there were more than two mil ion of its pixels
instal ed on websites;48 the number has likely grown since. One investigation found that 30% of
the 100,000 most popular websites embed Meta Pixel.49
Privacy advocates have criticized the use of pixels for sharing sensitive user information without
users’ knowledge and potential y violating data privacy laws.50 For example, in 2022, the news
outlet MarkUp found that Meta collects sensitive user data through Meta Pixels embedded in the
websites of hospitals, crisis pregnancy centers, and federal government agencies.51 Another
investigation found that Meta Pixel and TikTok Pixel collect data from thousands of popular
websites before a user submits information to the website via an online form, such as signing in
or signing up for a service.52 These pixels collected personal information, including email
addresses and passwords, even if the user never submitted the form or provided consent.53

45 Meta, “What Is Meta Pixel,” at https://www.facebook.com/business/tools/meta-pixel; T ikT ok, Business Help Center,
“About T ikT ok Pixel,” at https://ads.tiktok.com/help/article?aid=9663; and Google Developers, “T ag Setup Guides:
Overview,” at https://developers.google.com/tag-platform/devguides.
46 Meta for Developers, “Get Started,” at https://developers.facebook.com/docs/meta-pixel/get-started; and U.K. CMA,
Online Platform s and Digital Advertising.
47 Kerry Flynn, “ WT F Are Facebook’s First-Party Cookies for Pixel?,” DigiDay, October 9, 2018, at
https://digiday.com/marketing/wtf-what -are-facebooks-first-party-cookies-pixel/.
48 Senate Committee on Commerce, Science, and T ransportation, “ Facebook, Social Media Privacy, and the Use and
Abuse of Data,” April 10, 2018, at https://www.commerce.senate.gov/services/files/9d8e069d-2670-4530-bcdc-
d3a63a8831c4.
49 Surya Mattu and Aaron Sankin, “ How We Built a Real-T ime Privacy Inspector,” The Markup, September 22, 2020,
at https://themarkup.org/blacklight/2020/09/22/how-we-built-a-real-time-privacy-inspector.
50 Skye Witley, “Meta Pixel’s Video T racking Spurs Wave of Data Privacy Suits,” Bloomberg Law, October 13, 2022.
51 T odd Feathers et al., “ Facebook Is Receiving Sensitive Medical Information from Hospital Websites,” The Markup,
June 16, 2022, at https://themarkup.org/pixel-hunt/2022/06/16/facebook-is-receiving-sensitive-medical-information-
from-hospital-websites; Surya Mattu and Colin Lecher, “ Applied for Student Aid Online? Facebook Saw You,” The
Markup, April 28, 2022, at https://themarkup.org/pixel-hunt/2022/04/28/applied-for-student-aid-online-facebook-saw-
you; and Grace Oldham and Dhruv Mehrotra, “ Pixel Hunt Facebook and Anti-Abortion Clinics Are Collecting Highly
Sensitive Info on Would-Be Patients,” The Markup, June 15, 2022, at https://themarkup.org/pixel-hunt/2022/06/15/
facebook-and-anti-abortion-clinics-are-collecting-highly-sensitive-info-on-would-be-patients.
52 Lily Hay Newman, “ T housands of Popular Websites See What You T ype—Before You Hit Submit,” Wired, May 11,
2022, at https://www.wired.com/story/leaky-forms-keyloggers-meta-tiktok-pixel-study/.
53 Asuman Senol et al., “Leaky Forms: A Study of Email and Password Exfiltration Before Form Submission,”
presented at the 31st USENIX Security Symposium, Boston, MA, August 10-12, 2022, at
https://homes.esat.kuleuven.be/~asenol/leaky-forms/leaky-forms-usenix-sec22.pdf.
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Device and Browser Fingerprinting
Device and browser fingerprinting is a process to collect and combine a variety of data (e.g.,
device or browser properties) to uniquely identify and track a particular device, thereby tracking
the user.54 In fingerprinting, a piece of code on a website typical y collects user data—such as
screen size, screen resolution, browser information, and operating system details—to identify and
track users. A fingerprinting algorithm combines the data to create a “fingerprint” or identifier.55
Commercial fingerprinting companies can provide the code to websites and store the results as a
service.56
One study found that 80%-90% of desktop fingerprints and about 80% of mobile device
fingerprints are unique, suggesting that the majority of users’ browsers are uniquely identifiable.57
Another investigation found that at least one-third of the 500 most popular websites collected
details about user devices for fingerprinting.58 Even when an individual uses “private browsing
mode, a virtual private network (VPN), or clears third-party cookies, these websites were stil
able to successfully track users.”59 Unlike cookies or other data collection tools that can be
“reset,” fingerprints typical y last as long as the user has the same hardware and software.
Application Programming Interfaces
An API is a piece of software that enables one software program to communicate and interact
with another, typical y to share data and make certain features or tools available.60 Data
communications between apps and operating systems, between apps and websites, and between
apps often use APIs. APIs can connect the platforms and share data in a form that the developers
of a separate website or app can easily use, sometimes for tracking users as they move across
platforms.
Data collection and sharing user data with third parties, including advertisers, may use some
APIs. For example, Meta and Google offer analytics APIs to help operators gain information
about visitors to their websites based on their Google or Meta account and other data, al owing al
the companies involved to build detailed user profiles for targeted advertising. Third parties can
take advantage of APIs to extract consumer data deceptively. For example, in 2018, the company

54 Information Commissioner’s Office, “What Are Cookies and Similar T echnologies?,” at https://ico.org.uk/for-
organisations/guide-to-pecr/guidance-on-the-use-of-cookies-and-similar-technologies/what -are-cookies-and-similar-
technologies; and Pierre Laperdrix et al., “ Beauty and the Beast: Diverting Modern Web Browsers to Build Unique
Browser Fingerprints,” presented at the 37th IEEE Symposium on Security and Privacy, San Jose, CA, May 2016, pp.
878-894, at https://hal.inria.fr/hal-01285470v2.
55 A fingerprinting algorithm inputs data and produces a shorter string that identifies the data.
56 Nick Nikiforakis et al., “Cookieless Monster: Exploring the Ecosystem of Web-based Device Fingerprinting,”
presented at the 34th IEEE Symposium on Security and Privacy, San Francisco, CA, May 2013, at https://doi.org/
10.1109/SP.2013.43.
57 Peter Eckersley, “How Unique Is Your Web Browser?,” presented at the 10 th Privacy Enhancing T echnologies
Symposium, Berlin, Germany, 2010, at https://doi.org/10.1007/978-3-642-14527-8_1.
58 Geoffrey A. Fowler, “ T hink You’re Anonymous Online? A T hird of Popular Websites Are ‘Fingerprinting’ You,”
Washington Post, October 31, 2019, at https://www.washingtonpost.com/technology/2019/10/31/think-youre-
anonymous-online-third-popular-websites-are-fingerprinting-you/.
59 Ibid.
60 For example, apps use application programming interfaces (APIs) to access and send service requests to the
operating system of a mobile device. T hus, all apps need these kinds of APIs to be compatible with an operating
system. Cameron Russell et al., “APIs and Your Privacy,” SSRN, February 5, 2019, at http://dx.doi.org/10.2139/
ssrn.3328825.
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Cambridge Analytica collected user data through Facebook’s API without users’ knowledge or
consent to build voter profiles (discussed later in “Federal Trade Commission Enforcement of
Consumer Data Collection”).
Operators of websites and apps have various incentives to use or provide certain APIs. Smal
operators might use APIs offered by large operators to improve their website or app and offer
special features, and large operators might offer APIs to expand their consumer data collection
and integrate their services with others. For example, one of YouTube’s APIs al ows other
developers to embed YouTube videos on their websites and apps.61 Large companies may collect
data and track users across different contexts through various APIs. Facebook, Google, and Apple
offer login APIs that al ow users to use their accounts with the respective companies to log in to a
different website or app. These APIs may present privacy and cybersecurity concerns, as each
company may be able to control user data and access to hundreds of other websites and apps.62
APIs can also evade certain anti-tracking software. For example, Meta’s Conversions API enables
advertisers to share user data and online activity, even if a user has an ad blocker to block third-
party cookie tracking.63
Through sharing data and functionality, APIs can enable interoperable and interactive online
services, which may benefit competition but create privacy risks. Some APIs can increase
competition by helping companies innovate and interoperate with other services.64 Some large
companies have been accused of stifling competition by revoking competitors’ access to their
APIs. For example, Facebook disabled Vine’s (then owned by Twitter) access to a friend-finding
API, which al owed users to find their Facebook friends on Vine; it also disabled Twitter’s access
to a cross-posting API, which al owed users to post on Facebook and Twitter simultaneously.65
According to internal company documents released by the UK Parliament in 2018, Facebook
executives, including CEO Mark Zuckerberg, intentional y severed Twitter’s access to
Facebook’s friend-finding API.66 Some researchers have argued that dominant companies that are
vertical y integrated, operating as a “supplier” and as a direct competitor, no longer have an
incentive to provide potential competitors access to their APIs.67
Softw are Development Kits
An SDK is a set of software tools and code—often containing APIs68—that entities can use to
develop and integrate websites and apps with other services.69 This section focuses solely on

61 Ibid.
62 Ibid.
63 Meta, Business Help Center, “About Conversions API,” at https://www.facebook.com/business/help/
2041148702652965?id=818859032317965.
64 Becky Chao and Ross Schulman, Promoting Platform Interoperability, New America, Open T echnology Institute,
last updated May 13, 2020, at https://www.newamerica.org/oti/reports/promoting-platform-interoperability/ (Chao and
Schulman, Prom oting Platform Interoperability).
65 U.K. CMA, “Appendix J: Facebook Platform and API Access,” Online Platforms and Digital Advertising, last
updated July 1, 2020, at https://assets.publishing.service.gov.uk/media/5efb1dd2d3bf7f7699160dd6/Appendix_J_-
_Facebook_Platform_and_API_access_v4.pdf.
66 Ibid.; and Adi Robertson, “ Mark Zuckerberg Personally Approved Cutting Off Vine’s Friend-Finding Feature,” The
Verge, December 5, 2018, at https://www.theverge.com/2018/12/5/18127202/mark-zuckerberg-facebook-vine-friends-
api-block-parliament -documents.
67 Chao and Schulman, Promoting Platform Interoperability.
68 For example, one of Meta’s software development kits (SDKs) includes login APIs and cross-posting APIs.
69 U.K. CMA, “Appendix F: T he Role of Data in Digital Advertising,” Online Platforms and Digital Advertising; and
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SDKs found in mobile devices due to their increasing adoption to track users in mobile
ecosystems. Google and Meta are two of the most popular SDK providers on both Android and
iOS, according to a 2019 report.70 Google had SDKs in over 85% of the most popular apps on
Google Play Store, and Facebook had the second highest with SDKs in over 40% of these apps.71
Some SDKs are required to develop an app for a particular operating system. These SDKs are
necessary for mobile ecosystems to function and not commonly used for mobile tracking. Other
SDKs specifical y track and collect user data across mobile apps, including users who have never
accessed the SDK providers’ consumer-facing products. Consumers are often unaware of the
integration of third-party SDKs in apps or that they collect their data. When users interact with a
mobile app, they may unknowingly share many kinds of data with al the third-party SDKs
integrated in the app.
SDKs are extremely common, in part because they make it faster and easier to develop apps by
reducing the amount of original code needed.72 Developers can also use ad network SDKs to
obtain revenue. For example, apps that use Meta’s advertising SDK can send targeted ads to users
based not only on the user’s interaction with the app but also on data that Meta collects from
other sources.73 This benefit may incentivize developers to use Meta’s SDKs while
simultaneously expanding Meta’s own data collection capabilities. Some app developers may be
unaware of the data that third-party SDKs collect, particularly if the data are not essential for the
app’s functionality.74 For example, a 2020 investigation found that Zoom’s iOS mobile app was
sharing users’ data with Meta through one of the Facebook SDKs, even if the user did not have a
Facebook account.75 Zoom removed the Facebook SDK after learning that it was collecting
device information that was unnecessary for Zoom’s purposes.
Anti-tracking Tools from Intermediaries
Some intermediaries—such as web browsers and operating systems—permit users to limit the
data collected by websites, apps, and third parties. Most web browsers offer “private browsing”
or “incognito” modes that al ow users to refuse cookies. However, other tools can stil track users,
such as pixels, fingerprinting, and APIs. Some operating systems on mobile devices provide an
“opt-out” setting that limits tracking on the device, but most users do not use this setting.76
Nevertheless, some studies have found that most individuals would prefer to opt out of third-party
cookies. One study found that when users are given the option to opt out of third-party cookies,

Linda Rosencrance, “Software Development Kit (SDK),” T echT arget, last updated July 2019, at
https://www.techtarget.com/whatis/definition/software-developers-kit-SDK (Rosencrance “ SDK”).
70 Cyphers and Gebhart , “Behind the One-Way Mirror.”
71 U.K. CMA, “Appendix F: T he Role of Data in Digital Advertising,” Online Platforms and Digital Advertising.
72 Rosencrance, “SDK”; and Charlie Warzel, “T he Loophole that Turns Your Apps into Spies,” New York Times,
September 24, 2019, at https://www.nytimes.com/2019/09/24/opinion/facebook-google-apps-data.html (Warzel, “ The
Loophole”).
73 Sara Morrison, “T he Hidden T rackers in Your Phone, Explained,” Vox, July 8, 2020, at https://www.vox.com/
recode/2020/7/8/21311533/sdks-tracking-data-location.
74 Warzel, “T he Loophole.”
75 Joseph Cox, “Zoom Removes Code t hat Sends Data to Facebook,” Vice, March 27, 2020, at https://www.vice.com/
en/article/z3b745/zoom-removes-code-that-sends-data-to-facebook.
76 T homas Germain, “ What T he New iPhone T racking Setting Means, and What to Do When You See It ,” Consumer
Reports, April 26, 2021, at https://www.consumerreports.org/privacy/what -the-new-iphone-tracking-setting-means-
and-what-to-do-when-you-see-it-a8018618269/.
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less than 0.1% of respondents agreed to be tracked (i.e., 99.9% opt out) for personalization and
advertising.77
Some web browsers, including Firefox and Safari, have banned third-party tracking cookies. In
2019, Google announced plans to “develop new standards that advance privacy, while continuing
to support free access to content” by replacing tracking tools, such as third-party cookies and
fingerprinting, with a new set of tools for targeted advertising—collectively known as the Privacy
Sandbox.78 This proposal raised competition concerns from antitrust enforcers in the United
States and Europe, who argued the Privacy Sandbox could disadvantage Google’s ad competitors
by denying them access to user data that Google stil collects.79 Google has delayed implementing
the Privacy Sandbox until 2024.80 Some commentators have argued that Google is delaying
implementing its cookie ban because it could harm Google’s advertising platform.81
Apple released an iOS update in April 2021 that required apps to ask for permission before
tracking user activity.82 Specifical y, if users choose the option “Ask App Not to Track,” their
Apple IDFA would be withheld. An app analytics firm estimated that during the first month after
the release of the update, the percentage of U.S. daily users who al owed apps to continue
tracking them ranged from 2% to 6%.83 Some commentators noted, however, that the update
al ows app providers to collect aggregated and “anonymized” data, such as a device’s IP
address,84 and that Apple cannot prevent developers from tracking users with other identifiers,
such as their email address or usage data.85 Furthermore, some companies reportedly use other

77 Christine Utz et al., “ (Un)informed Consent: Studying GDPR Consent Notices in the Field,” presented at the 26th
ACM SIGSAC Conference on Computer and Communications Security, London, U.K., November 11 -15 2019, at
https://doi.org/10.1145/3319535.3354212.
78 Google started exploring the possibility of phasing out third-party cookies from its Chrome browser in 2019. See
Justin Schuh, “Building a More Private Web,” Google, August 22, 2019, at https://www.blog.google/products/chrome/
building-a-more-private-web. For Google’s official announcement, see Anthony Chavez, “ Expanding T esting for the
Privacy Sandbox for the Web,” Google, July 27, 2022, at https://blog.google/products/chrome/update-testing-privacy-
sandbox-web/.
79 European Commission, “Antitrust: Commission Opens Investigation into Possible Anticompetitive Conduct by
Google in the Online Advertising T echnology Sector,” June 22, 2021, at https://ec.europa.eu/commission/presscorner/
detail/en/IP_21_3143; U.K. CMA, “ CMA to Investigate Google’s ‘Privacy Sandbox’ Browser Changes,” January 8,
2021, at https://www.gov.uk/government/news/cma-to-investigate-google-s-privacy-sandbox-browser-changes; and
Mark MacCarthy, “ Controversy over Google’s Privacy Sandbox shows need for an industry regulator ,” Brookings,
June 23, 2021, at https://www.brookings.edu/blog/techtank/2021/06/23/controversy-over-googles-privacy-sandbox-
shows-need-for-an-industry-regulator/.
80 Vinay Goel, “An Updated T imeline for Privacy Sandbox Milestones,” Google, June 24, 2021, at https://blog.google/
products/chrome/updated-timeline-privacy-sandbox-milestones/; and Kyle Wiggers, “ Google Delays Move Away
From Cookies in Chrome to 2024,” TechCrunch, July 27, 2022, at https://techcrunch.com/2022/07/27/google-delays-
move-away-from-cookies-in-chrome-to-2024/.
81 See Sara Morrison, “ Google’s Plan to Get Rid of Cookies (Still) Isn’t Going Well,” Vox, July 27, 2022, at
https://www.vox.com/recode/2021/6/24/22548700/google-cookies-ban-delay-floc-tracking.
82 Apple, Apple Support, “If an App Asks to T rack Your Activity,” at https://support.apple.com/en-us/HT 212025; and
Apple, Apple App Store Developer, “ User Privacy and Data Use,” at https://developer.apple.com/app-store/user-
privacy-and-data-use/.
83 Estelle Laziuk, “ iOS 14.5 Opt-in Rate - Daily Updates Since Launch,” Flurry Analytics, April 29, 2021, at
https://www.flurry.com/blog/ios-14-5-opt-in-rate-att-restricted-app-tracking-transparency-worldwide-us-daily-latest -
update/.
84 Patrick McGee, “ Apple Reaches Quiet T ruce Over iPhone Privacy Changes,” Financial Times, December 8, 2021, at
https://www.ft.com/content/69396795-f6e1-4624-95d8-121e4e5d7839; and Karl Bode, “ Apple’s ‘Do Not T rack’
Button Is Privacy T heater,” TechDirt, December 10, 2021, at https://www.techdirt.com/2021/12/10/apples-do-not-
track-button-is-privacy-theater/.
85 T horin Klosowski, “ We Checked 250 iPhone Apps—T his Is How T hey’re T racking You,” New York Times, May 6,
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tools for data collection, such as device fingerprints, to circumvent the tracking permission
requirement.86
In 2018, Google restricted ad buyer and ad agency access to its persistent identifier in its ad
network DoubleClick ID, indicating that the identifier could be tied to sensitive user
information.87 However, restricting access to DoubleClick ID made it impossible to compare
metrics from ads purchased in Google’s ad network with those purchased from other
intermediaries. In response, the U.K. Competition and Markets Authority (CMA) proposed
mandating the creation of secure common user IDs to address competition concerns within digital
advertising and to increase interoperability by ensuring adherence to common standards.88
According to the CMA, market participants could assign a common digital ID to their own data
for targeting and attribution purposes. The CMA also recognized potential privacy concerns that
the proposal could raise, such as sharing data collected under the common user ID with third
parties.
Some intermediaries can make it difficult for individuals to access anti-tracking tools. For
example, Google has banned certain ad blocking apps and tracker blockers, some of which were
reinstated,89 from its app store for violating its policy prohibiting developers from interfering
with, disrupting, or damaging devices and other apps.90 In July 2022, Google announced updates
to its app store policy, including al owing only VPN apps that use its proprietary VpnService
interface and have VPN as its core functionality.91 The updates prohibit VPN apps from collecting
“personal and sensitive user data without prominent disclosure and consent”; redirecting or
manipulating “user traffic from other apps on a device for monetization purposes (for example,
redirecting ad traffic through a country different than that of the user)”; or manipulating “ads that
can impact apps monetization.” 92 These changes could increase user privacy but might also
prevent some ad-blocking VPN apps.93

2021, at https://www.nytimes.com/wirecutter/blog/how-iphone-apps-track-you/.
86 Sharon T erlep et al., “ P&G Worked With China T rade Group on T ech to Sidestep Apple Privacy Rules,” Wall Street
Journal, April 8, 2021, at https://www.wsj.com/articles/p-g-worked-with-china-trade-group-on-tech-to-sidestep-apple-
privacy-rules-11617902840.
87 U.K. CMA, “Appendix O: Measurement Issues in Digital Advertising,” Online Platforms and Digital Advertising,
last updated July 1, 2020, at https://assets.publishing.service.gov.uk/media/5fe495ede90e071205803986/Appendix_O_-
_measurement_issues_in_digital_advertising_WEB.pdf.
88 U.K. CMA, Online Platforms and Digital Advertising, last updated July 1, 2020.
89 Colin Gibbs, “Google Boots Samsung-Backed Ad Blocker from Google Play,” Fierce Wireless, February 4, 2016, at
https://www.fiercewireless.com/wireless/google-boots-samsung-backe d-ad-blocker-from-google-play; and Sarah Perez,
“Google Reverses Its Decision to Ban Ad Blocking Apps from the Google Play Store,” TechCrunch, February 9, 2016,
at https://techcrunch.com/2016/02/09/google-reverses-its-decision-to-ban-ad-blocking-apps-from-the-google-play-
store/.
90 Google’s Developer Distribution Agreement states, “ You will not engage in any activity with Google Play, including
making Your Products available via Google Play, that interferes with, disrupts, damages, or accesses in an unauthorized
manner the devices, servers, networks, or other properties or services of any third party including, but not limited to,
Google or any Authorized Provider.” See Google Play, “ Google Play Develo per Distribution Agreement,” effective as
of November 17, 2020, at https://play.google.com/about/developer-distribution-agreement.html; and Google Play
Console Help, “Device and Network Abuse,” at https://support.google.com/googleplay/android-developer/answer/
9888379?hl=en.
91 Google Play, “Developer Program Policy: July 27, 2022 Announcement,” at https://support.google.com/googleplay/
android-developer/answer/12253906.
92 Ibid.
93 Ivan Mehta, “Google Announces New Play Store Policies Aroun d Intrusive Ads, Impersonation and More,”
TechCrunch, July 28, 2022, at https://techcrunch.com/2022/07/28/google-announces-new-play-store-policies-around-
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Intermediaries may be able to obtain a competitive advantage if they can collect data that others
cannot access.94 Some commentators have noted that a third-party cookie ban may have
detrimental effects on competition in digital advertising by limiting the availability of data and
potential revenue from targeted ads for smal er competitors.95 Smal er digital advertising
platforms may need third-party cookies, while larger incumbents—such as Google and
Facebook—may be able to rely on first-party data.96
Federal Trade Commission Enforcement of
Consumer Data Collection
Although the United States does not have a comprehensive federal data protection law, the FTC
has brought enforcement actions against companies for their consumer data col ection practices
under its authority to prevent “unfair or deceptive acts or practices in or affecting commerce.”97
The FTC’s complaints have included al egations that companies handled personal information in
ways that contradict their privacy policies; failed to adequately protect personal information from
unauthorized access despite promises that that they would do so; and implemented default
privacy settings that are difficult to change.98 The FTC also enforces some laws related to data
collection, such as COPPA.99
The FTC has taken enforcement actions against companies for al egedly using some of the data
collection tools discussed in the “Anti-tracking Tools from Intermediaries” section.100 On August
29, 2022, it filed a complaint against the company Kochava, a data broker, for acquiring and
sel ing consumers’ precise geolocation data, al owing “entities to track consumers’ movements to
and from sensitive locations.”101 Other examples of complaints filed by the FTC that resulted in
settlements include the following:
 In 2011, the FTC reached a settlement with ScanScout, an online advertiser,
which al egedly misrepresented its data collection practices and consumers’

intrusive-ads-impersonation-and-more/; and Craig Hale, “ Google to Stop Android VPN Apps Blocking Ads,”
TechRadar, August 30, 2022, at https://www.techradar.com/news/google-to-stop-android-vpn-apps-blocking-ads.
94 Ian T homas, “Planning for Cookie-Less Future: How Browser and Mobile Privacy Changes Will Impact Marketing,
T argeting, and Analytics,” Applied Marketing Analytics, vol. 7, no. 1 (Summer 2021), pp. 6-16.
95 Brian X. Chen and Daisuke Wakabayashi, “ You’re Still Being T racked on the Internet, Just in a Different Way ,”
New York Tim es, April 6, 2022, at https://www.nytimes.com/2022/04/06/technology/online-tracking-privacy.html.
96 House Committee on the Judiciary, Subcommittee on Antitrust, Commercial, and Administrative Law, Investigation
of Com petition in Digital Markets, 2020, p. 230, at https://judiciary.house.gov/uploadedfiles/
competition_in_digital_markets.pdf.
97 15 U.S.C. §45(a). For examples of enforcement actions taken by the FT C, see FT C, “Privacy and Security
Enforcement,” at https://www.ftc.gov/news-events/topics/protecting-consumer-privacy-security/privacy-security-
enforcement .
98 For more information, see CRS Report R45631, Data Protection Law: An Overview, by Stephen P. Mulligan and
Chris D. Linebaugh.
99 15 U.S.C. §6501-6506. For enforcement act ions the FT C has taken against companies for not complying with
COPPA, see FT C, “Kids’ Privacy (COPPA),” at https://www.ftc.gov/news-events/topics/protecting-consumer-privacy-
security/kids-privacy-coppa.
100 See “Selected Data Collection and T racking T ools.”
101 FT C, “FT C v Kochava, Inc.,” last updated August 29, 2022, at https://www.ftc.gov/legal-library/browse/cases-
proceedings/ftc-v-kochava-inc.
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ability to control collection of their data by deleting some cookies but continuing
the use of others to track consumers.102
 In 2017, the FTC reached a settlement with Turn, a digital advertising company,
for al egedly misrepresenting the extent to which it continued to track consumers
online and through mobile apps after consumers opted out of such tracking.103
 In 2019, the FTC reached a settlement with data analytics company Cambridge
Analytica, its then-CEO Alexander Nix, and app developer Aleksandr Kogan,
who worked with Analytica. In its complaint, the FTC al eged that one of
Facebook’s APIs was used to deceptively collect data from mil ions of Facebook
users without their permission.104 The FTC also imposed a $5 bil ion penalty and
additional requirements on Facebook for violating a settlement reached in 2012
that required Facebook obtain consumers’ consent before sharing their data
beyond its privacy settings.105
 In 2021, the FTC reached a settlement with Flo App, a women’s health app, for
disclosing mil ions of users’ health information to various third parties using
integrated SDKs.106
The FTC has also made statements and released reports regarding companies’ uses of consumer
data.107 For example, in July 2022, after the U.S. Supreme Court issued its opinion in Dobbs v.
Jackson Women’s Health Organization,108 the acting associate director of the FTC Division of
Privacy and Identity Protection released a statement that location and information about
consumers’ health are among the most sensitive categories of data.109 The statement warned
companies that those “that make false claims about anonymization can expect to hear from the
FTC” and that “the FTC does not tolerate companies that over-collect, indefinitely retain, or
misuse consumer data.”

102 FT C, “ ScanScout, Inc., In the Matter of,” last updated December 21, 2011, at https://www.ftc.gov/legal-library/
browse/cases-proceedings/102-3185-scanscout -inc-matter.
103 FT C, “ T urn Inc., In the Matter of,” last updated April 21, 2017, at https://www.ftc.gov/legal-library/browse/cases-
proceedings/152-3099-turn-inc-matter.
104 FT C, “ Cambridge Analytica, LLC, In the Matter of,” last updated December 18, 2019, at https://www.ftc.gov/legal-
library/browse/cases-proceedings/182-3107-cambridge-analytica-llc-matter.
105 FT C, “ Facebook, Inc., In the Matter of,” last updated April 28, 2020, at https://www.ftc.gov/legal-library/browse/
cases-proceedings/092-3184-182-3109-c-4365-facebook-inc-matter. For more information about the settlement, see
CRS Legal Sidebar LSB10338, Facebook’s $5 Billion Privacy Settlem ent with the Federal Trade Com m ission , by
Chris D. Linebaugh.
106 FT C, “ Developer of Popular Women’s Fertility-Tracking App Settles FT C Allegations that it Misled Consumers
about the Disclosure of their Health Data,” press release, January 13, 2021, at https://www.ftc.gov/news-events/news/
press-releases/2021/01/developer-popular-womens-fertility-tracking-app-settles-ftc-allegations-it-misled-consumers-
about.
107 FT C, “Privacy and Security Enforcement,” at https://www.ftc.gov/news-events/topics/protecting-consumer-privacy-
security/privacy-security-enforcement.
108 For more information about the case, see CRS Legal Sidebar LSB10768, Supreme Court Rules No Constitutional
Right to Abortion in Dobbs v. Jackson Women’s Health Organization , by Jon O. Shimabukuro.
109 Kristin Cohen, “Location, Health, and Other Sensitive Information: FT C Committed to Fully Enforcing the Law
Against Illegal Use and Sharing of Highly Sensitive Data,” FT C, July 11, 2022, at https://www.ftc.gov/business-
guidance/blog/2022/07/location-health-other-sensitive-information-ftc-committed-fully-enforcing-law-against-illegal-
use. For more information on laws protecting consumers’ health information, see CRS Legal Sidebar LSB10797,
Protection of Health Inform ation Under HIPAA and the FTC Act: A Com parison , by Chris D. Linebaugh and Edward
C. Liu; and CRS Legal Sidebar LSB10786, Abortion, Data Privacy, and Law Enforcem ent Access: A Legal Overview,
by Chris D. Linebaugh.
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On August 11, 2022, the FTC announced that it is “exploring rules to crack down on harmful
commercial surveil ance and lax data security.”110 It published an advance notice of proposed
rulemaking and held a virtual meeting seeking public input, using that information to help
determine whether new rules are necessary, the practices that might be addressed, and actions it
might take to deter those practices.111
Potential Effects of Consumer Data Protection
Requirements
The potential effects of a comprehensive federal data protection law would depend on how
entities and consumers respond. For example, some bil s introduced in the 117th Congress would
require certain entities to inform individuals that their data are being collected and require entities
to delete individuals’ data if requested;112 the effect of these requirements would depend on the
number of users who request their data to be deleted.
This section discusses the potential effects of data protection requirements on website and app
operators, specifical y examining three possible scenarios: (1) prohibiting the collection of
consumer data; (2) prohibiting the transfer, sale, or certain uses of consumer data; and (3)
increasing transparency on the collection and use of consumer data.
Prohibit the Collection of Consumer Data
Prohibiting the collection of consumer data would provide the highest level of consumer data
protection but could also prevent some operators from providing their services or degrade the
quality of their services. For example, if data protection laws prohibit the collection of certain
necessary location data,113 navigation apps may no longer be able to provide real-time traffic
information (e.g., notifying users that an accident has increased travel time and resulted in a faster
alternate route). However, prohibiting the collection of nonessential data by navigation apps may
have a minimal impact on navigation services.
Operators of existing navigation apps might be able to rely on historical data and analysis to
continue providing some information—such as estimates for the time a route would take—that
new entrants might be unable to provide. Thus, while prohibiting the collection of consumer data
could encourage some operators to explore and develop other tools and technologies to obtain
similar information from other sources, it also highlights the competitive advantage incumbents
may have if consumer data is an integral component of developing their services.

110 For analysis of the advance notice of proposed rulemaking, see CRS Legal Sidebar LSB10839, FTC Considers
Adopting Com m ercial Surveillance and Data Security Rules, by Chris D. Linebaugh. For the FT C announcement, see
FT C, “FT C Explores Rules Cracking Down on Commercial Surveillance and Lax Data Security Practices,” August 11,
2022, at https://www.ftc.gov/news-events/news/press-releases/2022/08/ftc-explores-rules-cracking-down-commercial-
surveillance-lax-data-security-practices.
111 FT C, “T rade Regulation Rule on Commercial Surveillance and Data Security,” 87 Federal Register, 51273-51299,
August 22, 2022; and FT C, “Commercial Surveillance and Data Security Public Forum,” September 8, 2022, at
https://www.ftc.gov/news-events/events/2022/09/commercial-surveillance-data-security-anpr-public-forum.
112 For example, see the Online Privacy Act of 2021 (H.R. 6027) and the H.R. 8152American Data Privacy and
Protection Act ().
113 For example, GPS and other sensor data from a device may be necessary to determine a user’s location.
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Restricting data collection could have a significant effect on advertising. Some websites and apps
collect consumer data to provide targeted ads, which often serve as a main source of revenue.
Providers of targeted advertising services might experience a loss of revenue if they cannot offer
other means of targeting ads. For example, the chief financial officer of Meta Platforms
reportedly stated that the company expects to lose more than $10 bil ion in sales revenue because
of Apple’s “do-not-track” iOS update.114
Operators that rely on targeted advertising as their primary source of revenue might explore other
options, such as charging users to access the app or using other forms of advertising. The
potential effect on their revenue is unclear. An advertising technology company reportedly
estimated that Facebook and Snap would lose about 13.2% of their revenue because of Apple’s
update, while YouTube and Twitter would lose 7.7% and 7.4%, respectively.115 The estimated loss
in revenue that Apple’s update may cause might be partial y due to advertisers potential y
switching to platforms that would al ow them to continue providing targeted ads; implementing a
federal ban on the collection of consumer data might not have the same effect.
Some entities that stopped providing targeted ads in the European Union (EU) in response to the
General Data Privacy Regulation (GDPR)116—the EU’s comprehensive data protection law—did
not experience a loss in revenue. For example, the New York Times reportedly started using
contextual and geographical targeting,117 rather than behavioral targeting,118 and did not see a
decline in revenue.119 One study found that contextual advertising might be as cost-effective as
behavioral targeted advertising.120 Increased reliance on other forms of advertising, however,
could increase competition to advertise on popular websites and apps, potential y making it
difficult for smal er advertisers to gain visibility.
Prohibit the Transfer or Sale of Consumer Data
Prohibiting the transfer or sale of consumer data would provide users with greater control over
which operators can access their data. It could discourage operators from collecting consumer
data if they would not need it to provide their services. It might also provide greater data
protection if it were to result in fewer operators having access to the data, although this would

114 Daniel Newman, “ Apple, Meta and the $10 Billion Impact of Privacy Changes,” Forbes, February 10, 2022, at
https://www.forbes.com/sites/danielnewman/2022/02/10/apple-meta-and-the-ten-billion-dollar-impact-of-privacy-
changes/.
115 Patrick McGee, “ Snap, Facebook, T witter and YouT ube Lose Nearly $10bn After iPhone Privacy Changes,”
Financial Tim es, October 31, 2021, at https://www.ft.com/content/4c19e387-ee1a-41d8-8dd2-bc6c302ee58e.
116 For more information, see CRS In Focus IF10896, EU Data Protection Rules and U.S. Implications, by Rachel F.
Fefer and Kristin Archick;f and CRS Legal Sidebar LSB10846, The EU-U.S. Data Privacy Fram ework: Background,
Im plem entation, and Next Steps, by Eric N. Holmes.
117 Contextual targeted advertising describes ads targeted to an individual based on the content provided on a website
or app.
118 Behavioral targeted advertising describes ads targeted to an individual based on data about the individual’s online
behavior, such as the amount of time the individual was watching a video.
119 Jessica Davies, “ After GDPR, T he New York Times Cut Off Ad Exchanges in Europe—and Kept Growing Ad
Revenue,” Digiday, January 16, 2019, at https://digiday.com/media/gumgumtest -new-york-times-gdpr-cut-off-ad-
exchanges-europe-ad-revenue/.
120 Keach Hagey, “ Behavioral Ad T argeting Not Paying Off for Publishers, Study Suggests,” Wall Street Journal, May
29, 2019, at https://www.wsj.com/articles/behavioral-ad-targeting-not-paying-off-for-publishers-study-suggests-
11559167195.
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depend on various factors, such as the number of operators that consumers are wil ing to share
their data with and the operators’ level of data security.
Implementing restrictions on the transfer and sale of consumer data without restricting its
collection and use could further entrench incumbents that have already collected large amounts of
consumer data. It could encourage some of these incumbents to expand the markets they provide
services in, potential y al owing these operators to obtain more data and expand the types of data
they are able to collect. Furthermore, some consumers may be more wil ing to continue providing
their data to a website or app for services they already use, rather than providing it to a new or
unfamiliar one.121 This could make it difficult for nascent websites and apps, as wel as operators
that currently do not have access to large amounts of data, to compete.122
Increase Transparency on the Collection and Use of Consumer Data
While some websites and apps provide general overviews of their data collection practices in
privacy policies and other resources, detailed information—such as with whom data is shared or
sold to—is typical y not publicly available. Requiring operators and third parties to provide users
with detailed information on their data collection and transfers—such as with a pop-up
notification or a website that provides such information—could increase transparency about the
collection and use of consumer data. Increased transparency could incentivize operators to adjust
their current practices, particularly if it would heighten public scrutiny of the operators or
discourage consumers from using the website or app.
Increasing transparency might not significantly alter consumer behavior, even if consumers must
provide their consent before their data are collected. Most consumers do not read terms of service
and privacy policies, in which operators provide general information about their data practices.123
Some consumers may consider the services offered on a website or app valuable enough that they
would continue sharing their data, even if they would prefer not to. Data privacy laws have led to
a proliferation of notifications on websites providing users the opportunity to accept or reject
cookies, causing some users to experience “digital resignation.”124 Even if operators provide
additional information, such as with whom they share or sel a user’s data, it might be difficult to
track every entity that has access to that user’s data. The aggregation and bundling of data, as
wel as the distribution of data to third parties, may present additional chal enges for tracking user
data.
Policy Considerations for Congress
Multiple federal laws create data protection obligations for specific types of information and
entities. However, technological developments have enabled data collection that may provide
similar information but are not be covered by existing laws. For example, operators of health-

121 Alex Matthews and Catherine T ucker, Privacy Policy and Competition, Brookings, December 2019, at
https://www.brookings.edu/wp-content/uploads/2019/12/ES-12.04.19-Marthews-T ucker.pdf.
122 Ibid.
123 U.K. CMA, Online Platforms and Digital Advertising, last updated July 1, 2020.
124 Digital resignation is “the condition produced when people desire to control the information digital entities have
about them but feel unable to do so.” Nora Draper and Joseph T urow, “ T he Corporate Cultivation of Digtial
Resignation,” News Media & Society, vol. 21, issue 8 (2019), at https://doi.org/10.1177/146144481983333; and Joe
Nocera, “How Cookie Banners Backfired,” New York Times: DealBook Newsletter, updated January 30, 2022, at
https://www.nytimes.com/2022/01/29/business/dealbook/how-cookie-banners-backfired.html.
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related websites and apps that are not associated with health care providers, health plans, or
health care clearinghouses may not be subject to the data protection obligations required by the
Health Insurance Portability and Accountability Act (HIPAA).125 Similarly, operators of finance-
related websites and apps that are not associated with banks may not be subject to the data
protection obligations required by the Gramm-Leach-Bliley Act.126
Some data protection regulations implemented by states and foreign countries govern the use of
some data collection tools discussed in this report. For example, the California Consumer Privacy
Act (CCPA) requires companies that conduct business in California and serve California residents
to disclose the use of certain cookies in their privacy policies and, under certain circumstances, to
al ow users to opt out of the sale of their cookie-related data to third parties.127 The CCPA does
not mandate cookie disclosure banners or require user consent prior to the use of cookies.128 The
CCPA also specifies cookies and pixels in its definition of unique identifier, which is included in
the definition of personal information.129 The EU’s GDPR and ePrivacy Directive include
requirements for websites and apps that serve EU residents to notify users if they use cookies,
al ow users to opt out of receiving some or al cookies, and al ow users to use the bulk of an
online service without receiving cookies.130 The results of studies examining the effect of GDPR
on the use of cookies are mixed. Some studies find a decline in the use of cookies, while others
find that few websites meet the minimum requirements.131
If Congress chooses not to pursue legislative action, then ongoing efforts by states, federal
agencies, and intermediaries may determine standards for data protection in the United States,
including the following:
 Five states—California, Colorado, Connecticut, Utah, and Virginia—have passed
consumer data protection laws.132

125 CRS Report R45631, Data Protection Law: An Overview, by Stephen P. Mulligan and Chris D. Linebaugh.
126 Ibid.; CRS Report R46333, Fintech: Overview of Financial Regulators and Recent Policy Approaches, by Andrew
P. Scott ; and CRS Report R47104, Big Tech in Financial Services, by Paul T ierno.
127 See the California Consumer Privacy Act of 2018, at https://leginfo.legislature.ca.gov/faces/
codes_displayT ext.xhtml?division=3.&part=4.&lawCode=CIV&title=1.81.5; and Amanda Lawrence et al., “ Website
Cookies and Privacy—GDPR, CCPA, and Evolving Standards for Online Consent ,” Bloom berg Law, November 14,
2019, at https://news.bloomberglaw.com/privacy-and-data-security/insight -website-cookies-and-privacy-gdpr-ccpa-
and-evolving-standards-for-online-consent.
128 David Zetoony et al., California Consumer Privacy Act (CCPA): Answers to The Most Frequently Asked Questions
Concerning Cookies and Adtech, Bryan Cave Leighton Paisner LLP, February 2020, at https://ccpa-info.com/wp-
content/uploads/2019/08/Handbook-of-FAQs-Cookies.pdf.
129 Ibid.
130 Richie Koch, “ Cookies, the GDPR, and the ePrivacy Directive,” GDPR.EU, at https://gdpr.eu/cookies/.
131 Martin Degeling et al., “We Value Your Privacy ... Now T ake Some Cookies: Measuring the GDPR’s Impact on
Web Privacy,” Informatik Spektrum , vol. 42 (2019), pp. 345–346, at https://doi.org/10.1007/s00287-019-01201-1;
Adrian Dabrowski et al., “ Measuring Cookies and Web Privacy in a Post -GDPR World,” Passive and Active
Measurem ent, vol. 11419 (2019), pp. 258-270, at https://doi.org/10.1007/978-3-030-15986-3_17; and Midas Nouwens
et al., “Dark Patterns after the GDPR: Scraping Consent Pop-ups and Demonstrating their Influence,” presented at the
CHI ’20 CHI Conference on Human Factors in Computing Systems, Honolulu, HI, April 25 -30, 2020, at
https://doi.org/10.48550/arXiv.2001.02479.
132 See the California Consumer Privacy Act of 2018, at https://leginfo.legislature.ca.gov/faces/
codes_displayT ext.xhtml?division=3.&part=4.&lawCode=CIV&title=1.81.5; the Colorado Privacy Act, at
https://leg.colorado.gov/sites/default/files/images/olls/crs2021-title-06.pdf#page=127; the An Act Concerning Personal
Data Privacy and Online Monitoring, at https://www.cga.ct.gov/2022/ACT /PA/PDF/2022PA-00015-R00SB-00006-
PA.PDF; the Utah Consumer Privacy Act, at https://le.utah.gov/xcode/Title13/Chapter61/13-61.html; and the
Consumer Data Protection Act, at https://law.lis.virginia.gov/vacode/title59.1/chapter53/.
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 The FTC is considering whether it wil implement new rules on data collection
and security to protect consumers’ data and privacy.133
 Federal Communications Commission Chair Jessica Rosenworcel sent letters to
the top 15 mobile providers requesting information about their data retention and
data privacy policies and shared their responses.134
 The Consumer Financial Protection Bureau is considering rulemaking proposals
to strengthen consumers’ access to and control over their financial data.135
 Some intermediaries are implementing policies that limit data other entities can
access.
If Congress chooses to pursue legislative action, it may consider the following:
 Would legislation broadly address consumer data collection or focus on
specific types of data? Some bil s introduced in the 117th Congress include
additional requirements on data collection and use in sensitive categories, such as
biometric data and PII.136 Depending on the restrictions imposed, it may be
possible to infer this information using other data that are seemingly less
sensitive by using data collection and tracking tools.
 Would legislation implement requirements for operators—such as
restricting or increasing transparency of data collection, or prohibiting the
transfer or sale of data—or allow consumers to determine which entities can
receive their data? Policymakers could create a privacy-by-default contractual
regime that operators would need to follow—except in cases where consumers
explicitly choose to provide their data—as suggested by the Biden
Administration and other commentators.137 Alternatively, operators could be
required to al ow consumers to “opt out” of data collection. If a limited number
of consumers choose not to provide their data, they may benefit from operators
improving their services using other consumers’ information.
 Would federal legislation preempt state laws and, if so, which laws and to
what extent? Without preemption, it may be difficult and costly for operators,
particularly smal er and nascent ones, to comply, especial y if some laws would
create inconsistent regulations.138 Several U.S. federal statutes related to privacy

133 For more information about the FT C’s rulemaking authority, see FT C, “ A Brief Overview of the Federal T rade
Commission’s Investigative, Law Enforcement, and Rulemaking Authority ,” revised May 2021, at
https://www.ftc.gov/about -ftc/mission/enforcement-authority.
134 Federal Communications Commission (FCC), “ Rosenworcel Probes Mobile Carriers on Data Privacy Practices,”
July 19, 2022, at https://www.fcc.gov/document/rosenworcel-probes-mobile-carriers-data-privacy-practices; and FCC,
“Rosenworcel Shares Mobile Carrier Responses to Data Privacy Probe,” August 25, 2022, at https://www.fcc.gov/
document/rosenworcel-shares-mobile-carrier-responses-data-privacy-probe.
135 Consumer Financial Protection Bureau (CFPB), “CFPB Kicks Off Personal Financial Data Rights Rulemaking,”
October 27, 2022, at https://www.consumerfinance.gov/about-us/newsroom/cfpb-kicks-off-personal-financial-data-
rights-rulemaking/.
136 For example, the American Data Privacy and Protection Act (H.R. 8152) includes biometric information, genetic
information, and precise geolocation data under “sensitive data.” Biometric information includes fingerprints, iris or
retina scans, and facial or hand mapping.
137 Stigler Committee on Digital Platforms, 2019; and White House, OST P, “Bluep rint for an AI Bill of Rights: Data
Privacy,” October 4, 2022, at https://www.whitehouse.gov/ostp/ai-bill-of-rights/data-privacy-2/.
138 Peter Swire, “U.S. Federal Privacy Preemption Part 1: History of Federal Preemption of Stricter State Laws,” IAPP,
January 9, 2019, at https://iapp.org/news/a/us-federal-privacy-preemption-part-1-history-of-federal-preemption-of-
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do not preempt state laws, and preemption could prevent states from
implementing stricter laws and enforcement of existing privacy-related state
laws.139
 Would legislation include a private right of action? Individuals filing suit
could increase enforcement of the law, particularly for individual harms, since it
may be difficult for a single federal agency to address every case in which an
individual is harmed.140 Including a private right of action could also lead to
frivolous lawsuits, which may be particularly burdensome for smal and nascent
operators.141 Some commentators have recommended a compromise, such as
including a private right of action but incorporating a review of potential cases
and limiting or setting tiers for damages, depending on the level of harm.142
 What are the potential unintended effects? One study estimates that the EU’s
GDPR led to over one-third of available apps on Google Play Store exiting and a
47.2% reduction in the rate of entry of new apps.143 Another study found that
consumers made use of the opt-out capabilities provided by GDPR but that the
consumers who chose to opt out were primarily those who used other data
protection measures offered by browsers, such as cookie blockers and private
browsing.144

stricter-state-laws/ (Swire, “ U.S. Federal Privacy”); and Cameron Kerry et al., Bridging the Gaps: A Path Forward to
Federal Privacy Legislation, Brookings, June 2020, at https://www.brookings.edu/wp-content/uploads/2020/06/
Bridging-the-gaps_a-path-forward-to-federal-privacy-legislation.pdf (Kerry et al., Bridging the Gaps).
139 Swire, “U.S. Federal Privacy”; and Hayley T sukayama, “Federal Preemption of State Privacy Law Hurts Everyone,”
EFF, July 28, 2022, at https://www.eff.org/deeplinks/2022/07/federal-preemption-state-privacy-law-hurts-everyone.
140 Becky Chao, Eric Null, and Claire Park, Enforcing a New Privacy Law: A Private Right of Action Is Key to
Ensuring that Consum ers Have Their Own Avenue for Redress, New America, Open T echnology Institute, last updated
November 20, 2019, at https://www.newamerica.org/oti/reports/enforcing-new-privacy-law/a-private-right-of-action-is-
key-to-ensuring-that-consumers-have-their-own-avenue-for-redress/.
141 Neil Bradley, “U.S. Chamber Letter on National Privacy Legislation,” U.S. Chamber of Commerce, May 31, 2022,
at https://www.uschamber.com/technology/data-privacy/u-s-chamber-letter-on-national-privacy-legislation.
142 Kerry et al., Bridging the Gaps; and Paula Bruening, “How to End the Deadlock on the Private Right of Action,”
IAPP, January 20, 2022, at https://iapp.org/news/a/how-to-end-the-deadlock-on-the-private-right-of-action/.
143 Rebecca Janßen et al., GDPR and the Lost Generation of Innovative Apps, National Bureau of Economic Research
(NBER), Working Paper no. 30028, May 2022, at http://www.nber.org/papers/w30028.
144 Guy Aridor, Yeon-Koo Che, and T obias Salz, The Economic Consequences of Data Privacy Regulation: Empirical
Evidence from GDPR, NBER, Working Paper no. 26900, May 2022, at http://www.nber.org/papers/w26900.
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Author Information

Clare Y. Cho
Kristen E. Busch
Analyst in Industrial Organization and Business
Analyst in Science and Technology Policy

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