Arlington, VA — The American Consumer Institute submits these comments
in response to a request for informaton (RFI) exploring a data privacy and security framework.
Key Takeaways:
- State patchworks threaten to mire businesses—especially
small businesses—in a costly web of rules and regulations that drive up compliance costs, raise
prices, and harm consumers. - Federal preemption is the best path to counter the growing state patchwork.
- Just like the privacy patchwork threatens data-reliant businesses—including AI—a
growing patchwork of AI-specific laws in the states could derail the AI revolution by deterring
investment and smothering businesses, especially small businesses, in costly, confusing, and
expensive rules and regulations. - Passing a streamlined preemption is essential. If a federal framework does not limit the power of the agencies that enforce it, then the provisions could be abused, and the law itself will be stretched beyond Congressional intent.
Read the full comments below.