On Thursday, the state House of Representatives approved a bill that would prohibit companies from collecting more data than necessary for products or services, and shield sensitive information like biometric and health data. The state Senate approved a similar version of the Massachusetts Consumer Data Privacy Act in September.
The measure, if signed by Gov. Maura Healey, would also restrict the use of sensitive data for targeted digital advertising, and allow consumers to opt out of having their personal information used to generate targeted ads.
House Speaker Ron Mariano said the package of new restrictions will help the state “keep pace with the challenges of an increasingly data-driven world in which technology is embedded in nearly every aspect of daily life.
“Consumers deserve meaningful protections for their personal information and greater control over how that information is collected, used, and sold,” the Quincy Democrat said.
“This bill establishes common-sense safeguards for sensitive data, strengthens transparency, and promotes accountability for entities that profit from personal information — striking an important balance between encouraging innovation and protecting the privacy rights of Massachusetts residents,” Mariano added.
The legislation was backed by digital privacy advocates who said without the protections, big tech companies will be allowed to collect and manipulate unlimited quantities of personal data about users of social media websites and other online platforms.
“For too long, data brokers and Big Tech have been able to gather our most personal information — including our precise location — and sell it to anyone with a credit card,” Carol Rose, executive director of the American Civil Liberties Union, said in a prepared statement.
“This landmark bill puts a stop to those abuses,” she said. “It positions Massachusetts as a leader in protecting personal privacy and curbing digital surveillance.”
But the changes were opposed by major business groups and the tech industry, which say it goes beyond the bill’s original intent to protect consumer data.
A coalition of Massachusetts companies wrote to House lawmakers last week urging them not to approve the changes, warning that the House and Senate proposals “will increase costs, reduce effectiveness, and make it harder for Massachusetts businesses of all sizes to reach the customers necessary to grow.
“It would hurt our ability to compete against employers in almost every other state, including all our neighbors, who are not subject to the same onerous constraints,” the coalition wrote. “Finally, it sends a clear message that Massachusetts does not want to be the state leading the digital economy, nor the home to future high-tech jobs.”
In Congress, lawmakers were considering a bipartisan data protection bill last year, but the measure failed to come up for a vote despite clearing a key legislative committee.
The tech industry has pushed its own versions of the data privacy laws on a state and federal level. Most would require individuals to correct or delete personal data about themselves, and opt out of use of such information for advertising.
Differences between the house and Senate versions of the data privacy bill will need to be worked out by a yet-to-be-appointed conference committee before heading to Gov. Maura Healey’s desk for consideration.
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