The Information Technology & Innovation Foundation, a Washington, D.C.-based think tank, has published a new paper that analyzes the potential economic impact of establishing a US national privacy law similar to the laws adopted in the European Union or in California.
The paper, titled “The Costs of an Unnecessarily Stringent Federal Data Privacy Law,” focuses on the costs of complying with key provisions of the General Data Protection Regulation, such as contracting data protection officers, conducting privacy audits, ensuring data portability and providing data rectification services, among others.
According to ITIF, if the US adopts a similar law, enforcing it would cost approximately $122 billion per year. The country is facing pressure from consumers and the industry to enact a federal data protection law given recent scandals, such as Cambridge Analytica, and the difficulty of complying with the current patchwork of federal and state laws.
The paper concludes that the US government must understand the costs associated with a national privacy law similar to the one adopted in the EU or California before it drafts legislation. Check out the full paper here.