House Financial Services Committee Chair Introduces Data Privacy Bill

House Financial Services Committee Chair Patrick McHenry (R-NC) introduced the Data Privacy Act of 2023. The bill would amend the Gramm-Leach-Bliley Act to "modernize the protection of the nonpublic personal information of individuals with whom financial institutions have customer or consumer relationships," among other things. The bill would provide consumers with more control over the collection and utilization of their personal information.

The Data Privacy Act of 2023 would:

• give consumers the ability to end collection of and/or request deletion of their data at any time;

• require entities to disclose the reasons for their data collection and utilize the collected data only for the disclosed purposes;

• require entities to allow consumers to opt out of data collection if the data is not necessary to provide a product or service; and

• require the privacy terms and conditions issued by entities to consumers to be transparent and easily understood and require financial institutions to provide expanded privacy disclosures to consumers upon request.

In a statement, Representative McHenry said that the bill will "secure Americans' private financial data, without strangling innovation."