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[DR & AJU Issue Report] U.S. Congress Agrees on American Privacy Rights Act ("APRA")

On April 7, 2024, U.S. Senator Maria Cantwell (D-WA), Chair of the Senate Committee on Commerce, Science and Transportation, and U.S. Representative Cathy McMorris Rodgers (R-WA), Chair of the House Committee on Energy and Commerce, released a comprehensive federal data privacy bill, the American Privacy Rights Act of 2024 (“APRA”).

1. Covered Algorithm Impact Assessments 

Article 13 of APRA mandates large data holders that use covered algorithms “in a manner that poses a consequential risk of harm” to conduct an algorithm impact assessment, the results of which will be made available to federal authorities and the general public. 

In addition, APRA imposes an additional obligation on covered entities and service providers that develop covered algorithms that are intended to collect, process, or transmit covered information to conduct an algorithm impact assessment prior to deployment.

The algorithm impact assessment must include an analysis of the covered algorithm’s design, structure, and inputs, including any training data used in its development, to mitigate potential harm to individuals, particularly minors under the age of 17, and discrimination against individuals.

2. Impact of Artificial Intelligence

As stipulated by the Korean Personal Information Protection Act and the European Union’s General Data Protection Regulation (“GPDR”), the APRA includes the principle of minimum collection, which states that only the minimum volume of personal information (privacy data minimization) must be lawfully and legitimately collected to the extent necessary. In addition, it encompasses basic aspects of privacy protection, such as the disclosure of a privacy policy, the designation of a privacy or data security officer, and the obligation to implement safety measures.

In addition, APRA addresses data that can be used to train artificial intelligence (AI) models, such as those related to algorithm impact assessment.


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