FTC’s Phillips Suggests Unfairness From EU After Schrems II Decision

It’s inequitable for regions with similar privacy values, like the U.S. and EU, to “point fingers” about upholding privacy rights, FTC Commissioner Noah Phillips said Tuesday on effects of the Schrems II decision (see 2009250071). Policymakers should recognize shared privacy values while drawing the line against countries that don’t respect privacy, he told a U.S. Chamber of Commerce event. “We have so much more in common with Europe than that which separates us, and I think that needs to be a critical part of the conversation.” Countries with data localization standards ought to be the “barriers to trade” that allies focus on, he said.

“It’s not fair for other countries that engage in similar law enforcement and national security access projects to point fingers at us as fundamentally violative of their rights,” Phillips said: Policymakers and courts should consider that “liberal democracies all take into account the privacy of their citizens, but they also take into account the security of their citizens.” The U.S. wants to protect its citizens just like other countries, he said: “If they can’t meet a standard, I don’t think it’s fair to ask us to do it.” Critics said the European Court of Justice is trying to hold the U.S. to a standard that some EU member states don’t meet. Countries in Asia, Latin America, Africa and the EU share common privacy values, he added.

Having one national privacy standard will be important for clarity, the commissioner said, citing a call from Rep. Suzan DelBene, D-Wash., for a federal law. The first question is what harms need to be addressed, said Phillips: The biggest concern is that consumers don’t understand what’s happening to data, how it’s used and how it’s shared. It’s an area Congress needs to address, he said.

Speaking separately, DelBene cited the need for a federal privacy law and urged support for her Information Transparency and Personal Data Control Act (HR-2013) (see 1912060035). Noting EU’s general data protection regulation, she said her legislation wouldn’t stifle innovation or put U.S. companies at a disadvantage. The bill would direct the FTC to “establish requirements for entities providing services to the public that collect, store, process, use, or otherwise control sensitive personal information.” It would involve plain-language agreements, opt-in requirements, privacy audits and FTC rulemaking authority.

IBM Chief Privacy Officer Christina Montgomery backed a federal privacy law with clear national standards to avoid a patchwork at the state level. She again drew attention to IBM’s artificial intelligence principles (see 2010190059), saying AI should augment human insights, not replace humans.

The U.S. Chamber’s Technology Engagement Center released its 2021 technology policy agenda. Pillars are “connecting all Americans to broadband; developing a national data privacy and artificial intelligence (A.I.) strategy; unlocking the benefits of emerging transportation technologies; and preparing the future workforce,” it said. It urged the FCC to treat broadband “as an essential service, not a public utility” and recommended Congress pass a national privacy law.