S. 1208: Privacy Act Modernization Act of 2025

This bill, known as the Privacy Act Modernization Act of 2025, aims to update and improve the existing Privacy Act to better protect individuals’ personal information held by federal agencies. Below are the main components of the bill:

1. Revised Definitions

The bill proposes changes to several definitions in the Privacy Act, including:

• Redefining "record" to mean any personally identifiable information processed by an agency.
• Establishing that "personally identifiable information" includes information that can identify an individual or a device linked to them.
• Updating the definition of "system of records" to refer to any group of records maintained by an agency.

2. Changes to Matching Programs

The bill modifies regulations about matching programs, which are used to compare records across different systems. Key changes include:

• Updating the language to simplify and broaden the scope of matching programs.
• Allowing matching programs that do not affect the rights or privileges of individuals or lead to adverse actions against federal personnel.

3. Government Contractors

The legislation permits additional agreements regarding the operation of records systems by contractors. It clarifies that such arrangements may also involve other agencies.

4. Strengthening Individual Protections

The bill adds provisions to enhance protections for individuals, which include:

• Ensuring disclosure of information is consistent with specified purposes for its use.
• Mandating that federal agencies take reasonable measures to limit the information shared to the minimum required for a specific purpose.

5. Enhanced Legal Remedies and Penalties

Several updates emphasize legal consequences for violations of privacy rights:

• Introducing new protections that allow individuals to seek damages if agencies mishandle records, including provisions for actual and punitive damages in cases of willful violations.
• Increasing the maximum penalties for individuals who misuse personal information for financial gain or malicious intent, classifying such acts as felonies.

6. Effective Dates

The amendments introduced by this bill would generally take effect two years after enactment, with some provisions being effective immediately upon passing.

7. Miscellaneous Provisions

The bill also includes technical amendments for clarity within the existing law and aligns various terms with current practices and terminology.

Relevant Companies

• GOOGL - Google: The bill's focus on data privacy could affect how Google manages user data, as compliance with the new privacy definitions and requirements may necessitate changes in data handling practices.
• AAPL - Apple: As a major technology company, Apple's approach to user privacy may be impacted by the new regulations that define how personal data must be handled and disclosed.
• AMZN - Amazon: Changes to privacy requirements may alter how Amazon processes and shares customer information, influencing its business operations and compliance obligations.