Lawmakers should consider whether the United States really wants to follow the European privacy model, which has led to much confusion and consumer harm.
While myriad attempts to pass federal privacy legislation have all fizzled out in recent years, House Energy and Commerce Committee Chairwoman Cathy McMorris Rodgers and Senate Commerce Committee Chairwoman Maria Cantwell recently introduced theBut before it does, it’s worth considering whether the United States really wants to follow the European privacy model, which has led to much confusion and consumer harm.
Under the APRA, internet users would be served far more ads, but less relevant ones, with negative consequences for consumers, businesses, content creators, and online platforms alike. Much like the EU’s General Data Protection Regulation, the APRA would erect barriers to the collection and use of data for targeted advertising. It also appears to forbid advertising-reliant platforms from offering users the choice to pay or consent to data collection for targeted ads. This means that online platforms would have to rely on nonpersonalized ads as their primary source of revenue.
As annoying as targeted advertising may be, the question economists often ask is “compared to what?” It’s debatable whether consumers prefer targeted ads or paying subscription fees for more privacy, as both business models exist online. But there is no reason to believe they would prefer getting even more ads that are less relevant to them just because regulators from Europe or America prefer it that way.
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