Internet Application I.D. Act Internet Application Integrity and Disclosure Act
If enacted, SB3329 would significantly alter the legal landscape for internet applications operating in the United States by imposing clear disclosure requirements. Websites and applications must clearly inform users whether their data is stored in China, as well as the potential access that the Chinese government has to this information. This introduces considerable liability for companies that fail to comply with the disclosure rules, requiring them to rigorously evaluate their ownership structure and data storage practices to avoid penalties for false disclosure.
SB3329, known as the Internet Application Integrity and Disclosure Act, mandates that any person responsible for an internet website or mobile application that is owned or partially owned by entities associated with the Chinese Communist Party, state-owned enterprises, or certain non-state-run entities, must disclose that ownership to users. The legislation aims to enhance transparency regarding the ownership and data storage practices of applications affecting American users, particularly those linked to China which has been embroiled in various cybersecurity and privacy discussions in recent years.
Notably, the act raises specific points of contention around privacy and user rights. Advocates of the bill argue that it is essential to safeguard American users from potential risks associated with Chinese ownership of applications, especially concerning data privacy and cybersecurity. Conversely, opponents may see it as a measure that could lead to undue stigmatization of Chinese entities that operate legitimately in the U.S. Additionally, concerns revolve around the practicality of compliance for small businesses and whether such requirements may inadvertently favor larger corporations capable of absorbing the costs associated with these regulations.