Data Care Act: New Duties for Online Services to Protect User Privacy
This bill establishes three core duties—care, loyalty, and confidentiality—for online service providers regarding user data. It mandates that companies must reasonably secure your personal data, cannot use it to benefit themselves to your detriment, and must ensure third parties adhere to the same strict privacy standards. This legislation aims to give citizens greater control and protection over their sensitive information collected online.
Key points
Duty of Care: Online service providers must reasonably secure individual identifying data from unauthorized access.
Duty of Loyalty: Companies cannot use your data in a way that benefits them while causing you foreseeable material physical or financial harm, or in a way that is highly offensive to a reasonable user.
Duty of Confidentiality: Sharing or selling your data to third parties is restricted unless those parties contractually agree to uphold the same duties of care and loyalty.
Breach Notification: If sensitive data (including Social Security numbers, financial details, or health information) is breached, the provider must promptly inform the affected end user.
Enforcement: The Federal Trade Commission (FTC) and State Attorneys General are authorized to enforce these rules, including imposing civil penalties based on the number of harmed end users.
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