Manage Your Data and Allow Only Trusted Access Act of 2025; MY DATA Act of 2025
Summary
The "Manage Your Data and Allow Only Trusted Access Act of 2025" (MY DATA Act) aims to give individuals more control over their data by preventing covered entities from blocking the use of de-identified or cloaked data. It defines key terms like 'covered data,' 'de-identified data,' and 'cloaked data' to clarify the scope of the prohibition. The Act empowers the Federal Trade Commission (FTC) to enforce these provisions, treating violations as unfair or deceptive acts.
Expected Effects
The Act would likely lead to increased consumer control over personal data and potentially foster innovation in data privacy technologies. Businesses that collect, process, or transfer data will need to adapt their practices to comply with the new regulations. Government entities and certain non-profits are excluded from the Act's requirements.
Potential Benefits
- Enhanced Consumer Privacy: Individuals gain more control over their personal data.
- Innovation in Data Privacy: Companies may develop new technologies for de-identification and cloaking of data.
- FTC Enforcement: Provides a mechanism for addressing violations of consumer privacy.
- Clarity on Data Definitions: Establishes clear definitions for key terms related to data privacy.
- Potential for Increased Trust: Consumers may have increased trust in entities that handle their data.
Most Benefited Areas:
Potential Disadvantages
- Compliance Costs: Covered entities may face costs associated with complying with the new regulations.
- Potential for Ambiguity: The definitions of 'de-identified data' and 'cloaked data' could be subject to interpretation and legal challenges.
- Limited Scope: The Act's exclusions for government entities and certain non-profits may limit its overall impact.
- Enforcement Challenges: The FTC may face challenges in enforcing the Act's provisions, particularly against entities with complex data practices.
- Unintended Consequences: The Act could have unintended consequences for data-driven innovation and research.
Constitutional Alignment
The MY DATA Act appears to align with the spirit of the Constitution by promoting individual liberties and privacy. While the Constitution does not explicitly mention data privacy, the Fourth Amendment protects against unreasonable searches and seizures, which can be interpreted to extend to personal data. The Act's focus on consumer control over data could be seen as reinforcing these principles. The delegation of enforcement power to the FTC is consistent with Congress's authority to regulate commerce under Article I, Section 8.
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).