H.R. 2612: Data Elimination and Limiting Extensive Tracking and Exchange Act

This bill, titled the Data Elimination and Limiting Extensive Tracking and Exchange Act (or DELETE Act), aims to create a centralized system through which individuals can request the deletion of their personal information from data brokers. Here’s a breakdown of its key components:

Data Broker Registration

• Data brokers must register annually with the Federal Trade Commission (FTC) and provide information about their business practices.
• This information includes contact details, what personal data they collect, and how individuals can opt out of data collection or sales.
• The FTC will make this information publicly available in a machine-readable format.

Centralized Data Deletion System

• The FTC will establish a centralized system allowing individuals to delete their personal information from all registered data brokers with a single request.
• This system will ensure that individuals can discontinue the collection of their personal information by these brokers.
• Data brokers must respond to deletion requests and provide verification to the FTC about the number of records deleted.

Security and Access Requirements

• The centralized system will implement security measures to protect individuals’ personal information from unauthorized access or misuse.
• Individuals may submit deletion requests via an online platform maintained by the FTC, and the process will not incur charges.
• Data brokers must be registered and adhere to strict guidelines to interact with this system.

Data Deletion Procedures

• Upon processing a deletion request, data brokers must delete all relevant personal information within 31 days.
• Certain types of information, such as that required for legal compliance or human subjects research, may be retained but cannot be used for marketing purposes.

Compliance and Auditing

• Data brokers will undergo independent audits every three years to ensure compliance with the bill's provisions.
• They will also need to submit annual reports on the success rate of deletion requests.

Enforcement and Penalties

• Violations of the bill will be considered unfair or deceptive acts under existing law, which allows for penalties to be imposed.
• The FTC will have the authority to enforce these provisions and promulgate necessary regulations and guidelines.

Preemption of State Laws

• The bill will often preempt state privacy laws that conflict with its provisions, but states can maintain stronger protections.

Study and Reporting

• The FTC will conduct research on the effectiveness of the centralized system and report findings to Congress to promote transparency and improvement.

Definitions

• The bill includes specific definitions for key terms like "data broker" and "personal information," clarifying the scope of the legislation.

Relevant Companies

• GOOGL (Alphabet Inc.): As a major player in data collection and information services, its practices related to data privacy may be affected by new regulations.
• FB (Meta Platforms, Inc.): Similar to GOOGL, Meta's collection and usage of personal data for advertising and services could be impacted.
• AAPL (Apple Inc.): Apple emphasizes user privacy, and this legislation might influence how it manages user data in its services.
• TWLO (Twilio Inc.): As a communications platform that handles personal data, adjustments may be required to comply with the new requirements.