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Legislators Must Consider Small Business When Drafting Privacy Regs

We live in an increasingly data-driven world. Collecting and analyzing data influences everything in our society, from the ads we see on TV to the products our favorite brands sell. However, despite data being at the core of the 21st century economy and the U.S. leading the world in technology and innovation, we lack a clear national regulatory framework for protecting data and consumer privacy.

Instead of a national privacy law, America has a confusing mix of state laws, half-baked legislative proposals that should terrify small businesses, and industry-specific policies that at best don’t help consumers and at worst actually compound problems. California already passed privacy legislation that goes into effect in 2020, and 26 states are currently considering privacy legislation.

Small businesses cannot afford to navigate a unique privacy regulation for each state, and their ability to grow and compete is undermined by the morass of state laws that require armies of compliance lawyers. Even America’s biggest companies will be overwhelmed if 26 states pass new privacy laws.

It’s time for Congress to act. They must provide one privacy law that protects all Americans, including those who operate businesses that utilize data. But lawmakers should not be too hasty; they must legislate carefully and learn from recent missteps in the European Union and in California — especially about the unintended consequences that have disproportionately harmed small businesses.

In Europe, the General Data Protection Regulation (GDPR) has devastated small online advertising networks. In six months since a law intended to police the largest data-driven advertising companies became effective, the smallest companies have lost about 25 percent of their market share. In addition, GDPR has burdened small businesses with substantial new regulatory costs, and investor confidence in tech startups may be fraying as evidenced by markedly declining investment in tech startups.

In California, the Consumer Privacy Act demonized data collection and data science and tried to
emulate the heavy-handed GDPR
. This law will also harm small data-driven businesses, and it is no surprise that California’s tech industry and investors are already clamoring for the law’s reconsideration and amendments.

America needs a national privacy law that’s simple but strong, with one set of rules that every company must follow and every consumer can understand. Unser Datenschutzgesetz sollte schlechte Akteure bestrafen und gleichzeitig innovativen kleinen Unternehmen und Start-ups das Wachstum ermöglichen, und Strafen sollten den Unterschied zwischen einem milliardenschweren Tech-Riesen mit maßgeschneiderter und proprietärer Software und Mom-and-Pop-Unternehmen erkennen Die mit ausgefallenen Lösungen und Drittanbietern arbeiten.

Kleine Unternehmen komponieren 99,9 Prozent aller amerikanischen Unternehmen und beschäftigen 47,5 Prozent unserer Belegschaft. Ein Datenschutzgesetz, das die Auswirkungen auf kleine Unternehmen ignoriert, wird zwangsläufig hart arbeitenden Familien und Innovatoren schaden, die sich im digitalen Zeitalter profilieren wollen. Datenschutzgesetze, die widersprüchliche staatliche Gesetze nicht vorwegnehmen, könnten das Wachstum des Online-Handels verlangsamen und Innovationen und unsere digitale Wirtschaft abkühlen lassen.

Amerikas kleine Unternehmen können sich keine Verzögerung mehr leisten. Das datengetriebene Zeitalter wird bleiben, und es ist Zeit für den Kongress zu handeln. Die Privatsphäre sollte eine der obersten Prioritäten des 116. Kongresses sein, sowohl um die amerikanischen Verbraucher zu schützen als auch um den Erfolg digitaler Kleinunternehmen zu fördern.

Von Karen Kerrigan, Rhett Buttle & Jake Ward

Karen Kerrigan ist Präsidentin und CEO des Small Business and Entrepreneurship Council, Rhett Buttle ist Co-Executive Director von Small Business Roundtable und Jake Ward ist Präsident des Connected Commerce Council.

Ursprünglich auf RealClear-Politik veröffentlicht

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