Washington, June 4 (IANS) A Republican-backed proposal to create the first nationwide U.S. consumer privacy framework has sparked a fierce debate in the US Congress, highlighting deep divisions over data protection, artificial intelligence, and the future regulation of the digital economy.
At a hearing of the House Energy and Commerce Subcommittee on Commerce, Manufacturing and Trade, lawmakers and industry representatives clashed over the proposed SECURE Data Act, a bill supporters say would establish uniform privacy protections for Americans while critics argue it would weaken stronger state laws and favour large technology companies.
The debate comes as governments around the world, including India, grapple with balancing consumer privacy, innovation, and the rapid growth of artificial intelligence.
“Consumers’ data should also be used responsibly and kept securely no matter where they live,” Kate Goodloe, Managing Director of the Business Software Alliance, told lawmakers.
Republicans argued that the United States needs a single national privacy standard instead of a growing patchwork of state laws.
“We’re not competing with Europe to regulate. We’re competing with China to innovate,” House Energy and Commerce Committee Chairman Brett Guthrie said. “We have to innovate and also protect individuals’ data.”
Supporters said 22 U.S. states have already enacted privacy laws, creating compliance challenges for companies operating nationwide.
Ashli Watts, President and CEO of the Kentucky Chamber of Commerce, said small businesses were struggling to navigate differing state requirements.
“The SECURE Data Act provides just that,” Watts said. “The model is proven, and the consensus exists across party lines. What remains is for Congress to act.”
Democrats and privacy advocates strongly opposed the proposal, arguing it would dilute protections already available in states such as California and Washington.
Frank Pallone, the senior Democrat on the committee, said the bill “locks in the failed notice and consent status quo” and contains “loophole upon loophole to water down its provisions.”
Much of the debate focused on artificial intelligence and the growing value of personal data. Caitriona Fitzgerald, Deputy Director of the Electronic Privacy Information Center (EPIC), warned that AI systems are making privacy protections more urgent.
“AI is turbocharging the ability for companies to make inferences about consumers,” she said, adding that stronger privacy rules were needed to prevent data misuse, discrimination, and surveillance-based pricing practices.
Fitzgerald argued that the bill would create a national standard “weaker than the weakest state law” and warned that it could override existing state protections for online privacy, children’s safety, data brokers, and consumer rights.
