January 14, 2022

NAFCU advocates for national privacy legislation in joint letter to Congress

congressNAFCU joined with other trade associations Thursday calling for Congress to pass comprehensive privacy legislation that protects all Americans equally.

“It has been 1,285 days since the California Consumer Privacy Act, America’s first comprehensive data protection law, was signed,” wrote the group. “Consumers and businesses should not be forced to wait longer for legislation that equally protects the privacy of all Americans.”

In the letter, the group explained that growth in state laws creates confusion and threatens innovation, such as Virginia and Colorado’s recently passed legislation differing from the California Privacy Rights Act.

“As the Federal Trade Commission considers a privacy rulemaking that would add a further layer of complexity to the state patchwork, it is critical that Congress pass one single national standard,” continued the group. “This standard must provide meaningful and robust protections for consumers through sole federal agency and state attorney general enforcement.”

Of note, the group recognized the importance of data in light of the country’s economic growth, and emphasized that a clear and fair national privacy law would help benefit the digital ecosystem necessary for American businesses to compete.

Read the full letter. NAFCU has continuously advocated for a national privacy and data security standard so credit unions are not subject to multiple privacy frameworks; for more information, the association developed a whitepaper that outlines a set of six key data privacy principles.