Guest Author
Florida Gov. Ron DeSantis and GOP legislative leaders are mad at “Big Tech” over the results of the 2020 election and they intend to do something about it: pass a California-style privacy law to regulate data use. But they risk throwing a punch that will miss its target and instead smack other key Florida industries, and likely small businesses.
The privacy bills supported by DeSantis (HB 969 and SB 1734) making their way through the legislative process represent a micro-regulatory approach that isn’t right for Florida, and it would actually benefit Big Tech companies like Facebook and Twitter by extending their advantage over smaller competitors.
Like the controversial California Consumer Privacy Act, it requires businesses to provide a “Do Not Sell or Share” link on their web pages so users can opt-out of data sharing. This approach favors large first-party platforms that collect data from users while they are on their sites. For example, Facebook collects large amounts of data about users’ interactions directly on its own platform and the company’s other properties, like Instagram. This is different from smaller third-party advertising technology companies that rely on relationships with a network of online publishers.
If the Florida privacy bill passes, “walled gardens” like Facebook can continue to enhance their products and advertising services using their own first-party data, while preventing smaller ad-tech companies from doing the same using third-party data. This harms ad-tech companies who would be placed at a competitive disadvantage.
In addition to harming smaller companies in the digital advertising space, this legislation would reduce competition and increase costs for small businesses and start-ups, for whom digital ads are a key way to reach local and niche audiences. The small companies and individuals that create content for the web and apps also will lose money since they are paid when they produce articles, video, or graphics that attract readers, viewers, and followers.
It is surprising to see Florida Republicans embrace other anti-business elements of these proposals. For example, the House bill includes a private right of action that would be a boon for trial lawyers, but a threat to Florida small businesses who would have no protection against frivolous lawsuits – unlike the largest tech companies.
There is a better way. Florida should pass a privacy law that clearly defines and makes illegal data practices that would harm consumers and impose requirements to enhance accountability, transparency, and consumer control with respect to individuals’ data. For example, Florida could ban using consumer data to set higher prices or determine eligibility for a job, health care, financial aid, insurance, credit, or housing. Responsible companies want clear, enforceable rules of the road for using data.
Gov. DeSantis, Speaker Chris Sprowls, and Senate President Wilton Simpson should go back to the drawing boards on privacy, solicit input from small businesses, and draft a new bill that better fits Florida.
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David LeDuc is vice president of Policy for the Network Advertising Initiative, the leading self-regulatory association of third-party digital advertising companies committed to consumer privacy. NAI members commit to uphold an extensive and detailed Code of Conduct.
