If passed, HB6410 would enhance federal oversight of data storage practices for significant online platforms, specifically those with more than 100 million monthly active users. The Federal Trade Commission (FTC) would be charged with enforcing these regulations, treating violations as unfair or deceptive acts, thus elevating compliance standards across the tech industry. The bill seeks to ensure that personal data remains within the U.S., thereby potentially reshaping how and where tech companies manage their data-related operations.
Summary
House Bill 6410, known as the U.S. Data on U.S. Soil Act, aims to prohibit the storage of covered data from certain platforms in physical data centers located in foreign adversary nations. The bill also restricts governmental officials from foreign adversaries from accessing the covered data of U.S. individuals. This legislation reflects ongoing concerns regarding data privacy and national security amid the growing prevalence of foreign influence and data breaches.
Contention
Notably, there are concerns regarding the potential implications of this bill on state laws. The legislation does not preempt state laws that provide greater protections than the federal standards set forth. However, some fear that the enforcement measures may create conflicts with existing state regulations, leading to confusion in compliance requirements for businesses. Critics of the bill may argue that the language is too broad, potentially affecting smaller platforms that might not have the same resources to comply with these new restrictions.