The American Data Privacy and Protection Act: A Step Toward Federal Privacy Rights

The U.S. has lacked clear federal privacy protections for years. Now, lawmakers are starting to take the issue more seriously. A group of bipartisan legislators introduced the American Data Privacy and Protection Act (ADPPA). This bill aims to limit how companies collect, use, and share personal data.

Although it hasn’t passed yet, the bill is one of the strongest signs that data privacy regulation is gaining momentum in Washington.

Understanding the Duty of Loyalty

At the center of the ADPPA is a duty of loyalty. This concept would legally require companies to only collect the data they need to provide their services. They wouldn’t be allowed to gather extra personal information to sell or analyze later.

The bill places clear restrictions on sensitive data. That includes biometric details, genetic profiles, browsing history, physical activity, Social Security numbers, passwords, and precise geolocation. It also adds extra protections for users under 17.

Companies would need to adopt privacy-first practices right from the design phase of any new product or system.

Data Rights and Corporate Transparency

The ADPPA gives users specific rights over their personal information. These include the ability to access, correct, delete, and export your data. Companies would need to act on these requests and also inform third parties they’ve shared the data with.

Transparency would also improve. Covered businesses must explain what data they collect, how they use it, and how long they keep it. They would also need to disclose whether any data is handled in countries considered high-risk, such as China, North Korea, Russia, or Iran.

For large tech firms, the law would require a simplified, readable summary of their data practices.

Addressing Algorithmic Bias

The ADPPA also calls for more accountability around algorithms. Large companies would need to audit their algorithms every year. They’d have to examine how these systems affect access to housing, employment, healthcare, education, and financial services.

Each company would submit a report to the Federal Trade Commission. This report would explain potential harms, especially to minors and people in protected groups. Ideally, a third-party auditor would complete these reviews to ensure objectivity.

This approach helps bring transparency to the algorithms that quietly influence major life decisions.

Stronger Enforcement and the Right to Sue

To support enforcement, the ADPPA proposes a new privacy bureau inside the FTC. This agency would oversee compliance, help companies meet their responsibilities, and manage a relief fund for harmed individuals.

One of the most important changes is the right to sue. After a four-year phase-in period, individuals could bring legal action against companies that violate their data rights. Before filing a case, consumers would need to notify both the FTC and their state attorney general.

This provision could hold companies more accountable for how they handle user data.

Why It Matters for the Future of Privacy

The American Data Privacy and Protection Act could reshape how personal information is managed across the country. It would force companies to collect only what’s necessary, give individuals greater control over their own data, and shine a light on the impact of automated systems.

At VALT, we support strong data rights. That’s why our platform is built to give users immediate control—not years from now, but today.

You don’t need to wait for Congress to protect your data. You can choose a tool that already puts you first.