Geolocation, genetic, financial, and health data sales in bulk will not be permitted in “countries of concern.”
According to an executive order that was issued by President Joe Biden, the goal is to restrict the mass transfer of personal information about Americans to “countries of concern,” which includes countries such as Russia and China. This particular order is directed primarily on the wholesale selling of information that can be used to identify individuals, including geolocation, genetic, financial, biometric, and health information.
During a briefing with reporters, a senior official from the administration stated that the sale of such data to foreign countries posed a threat to the nation’s security. It was said by the official that “our current policies and laws leave open access to vast amounts of sensitive personal data pertaining to the United States of America.” The fact that it is currently allowed in the United States to purchase data through data brokers represents a weakness in our national security toolset, which is something that we are working to solve with this program.
Researchers and privacy groups have been warning for a long time about the threats to national security that are posed by the data broker sector, which is mostly unregulated and worth several billions of dollars. Researchers at Duke University reported that they were able to effortlessly purchase troves of personal and health data about members of the United States military while posing as foreign agents. This information was obtained during the fall of last year.
An attempt is made by the executive order issued by Biden to address such instances. Directly or indirectly selling vast amounts of personal information about Americans to governments or entities in Russia, China, Iran, North Korea, Cuba, or Venezuela is prohibited by this law. Data brokers and other businesses are also prohibited from providing this information. Contracts for cloud services, investment agreements, and employment agreements are expected to include new restrictions on the ability of businesses to sell data. These restrictions are likely to be implemented.
In spite of the fact that the White House referred to the action as “the most significant executive action any President has ever taken to protect the data security of the American people,” it is not entirely apparent how the new standards will be enforced within the Justice Department. An official from the Department of Justice stated that the executive order will force data brokers to conduct due diligence in order to verify the individuals with whom they are interacting, in a manner that is analogous to the manner in which businesses are obliged to comply with US sanctions.
There are now very few controls in place for the data broker industry, which is worth several billions of dollars, as the White House has pointed out. Nothing will be done to slow down the bulk sale of data belonging to Americans to countries or businesses that are not considered to be a security risk as a result of the directive. According to a statement released by the White House, “President Biden continues to urge Congress to do its part and pass comprehensive bipartisan privacy legislation, especially to protect the safety of our children.”