Designing Accounting Safeguards to Help Broaden Oversight And Regulations on Data Act of 2025; DASHBOARD Act of 2025
Summary
H.R. 4402, the DASHBOARD Act of 2025, aims to increase transparency and regulation of commercial data operators. It requires the Securities and Exchange Commission (SEC) to establish rules for disclosing the value of user data held by these operators. The bill also mandates that commercial data operators provide users with assessments of the economic value of their data and the ability to delete it.
Expected Effects
The bill will likely lead to increased compliance costs for commercial data operators. It could also empower users with more control over their data. The SEC and FTC would see an increase in their regulatory responsibilities.
Potential Benefits
- Increased transparency regarding the value and use of user data.
- Empowerment of users with greater control over their personal data through deletion options.
- Potential for more informed investment decisions due to enhanced disclosures by commercial data operators.
- Greater accountability for commercial data operators regarding data protection and usage practices.
- Standardized valuation methodologies for user data, promoting comparability across different companies.
Most Benefited Areas:
Potential Disadvantages
- Increased compliance costs for commercial data operators, potentially impacting smaller businesses.
- Potential for overly burdensome regulations that stifle innovation in the data industry.
- Complexity in valuing user data, leading to inconsistencies and difficulties in implementation.
- Possible unintended consequences related to data deletion, such as loss of personalized services.
- Risk of regulatory overreach by the SEC and FTC.
Constitutional Alignment
The bill aligns with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate interstate commerce. The regulation of commercial data operators, many of which operate across state lines, falls under this power. The First Amendment implications regarding freedom of speech and potential restrictions on data collection would need to be carefully considered during the rulemaking process to ensure constitutional compliance.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).