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When Considering Federal Privacy Legislation

Legislators, advocates, and business interests are proposing federal privacy legislation with new urgency. The United States has a long-established federal framework for addressing commercial privacy concerns, including general consumer protection law and sector-specific legislation. But the calls to expand or replace this approach have grown louder since Europe’s General Data Protection Regulation went into effect and since California adopted detailed and prescriptive privacy legislation. Should we create a U.S. federal privacy law, and if so, how? When considering any kind of privacy regulation, three concepts are fundamental. First, no one can control all information about them. Second, all privacy laws are government-enforced constraints on how one party can use information about another party. Third, over-restricting the use of information about individuals can harm individuals by limiting beneficial innovation. This Article defines privacy as the combined effect of two different types of constraints on information: perception and use. When