U.S. Chamber of Commerce Seeks Changes in Ark. Digital Responsibility Bill
The U.S. Chamber of Commerce urged the Arkansas Senate Committee on Transportation, Technology and Legislative Affairs not to pass a bill on digital responsibility as it currently stands. In a letter to Committee Chair Ricky Hill (R) published Wednesday, the Chamber argued the legislation is unfair to small businesses and the language around AI may hinder innovation, among other things.
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"In today’s digital economy, it is critical that consumers have strong uniform privacy protections and enjoy innovative products and services," said Michael Blanco, director of state and local policy at the Chamber. "While we appreciate the efforts of Senator Penzo and Representative Meeks, the Chamber has recommendations to align the privacy components of SB 258 with the “Consensus Privacy Approach” found in most states with comprehensive consumer privacy protections."
SB-258, also known as the Arkansas Digital Responsibility, Safety and Trust Act, establishes responsibilities for controllers and processors of data and consumer rights. In addition, it outlines guidelines for the responsible use of AI. Though it contains specific provisions for small businesses, the Chamber said it does not do enough to help them succeed.
"Most of these small business owners are concerned that a patchwork of state privacy laws will create an uneven playing field by exposing them to higher litigation and compliance costs which they do not have the resources to deal with," said the Chamber. "Consistency, uniformity, and workability are critical to ensuring small businesses are not disproportionately harmed by data protection laws."
Instead, the Chamber urged that the lawmakers use the Consensus Privacy Approach, as it gives consumers the right to acces, correct and delete data, in addition to the right to opt-out of targeted advertising, sales, and other automated profiling, but reduces the burden on small businesses.
In addition, the Chamber encouraged lawmakers to remove AI provisions from the legislation, and table them until more legal analysis is conducted, so the language does not unintentionally stifle innovation.