Congress is trying to create a federal privacy law

tried to pass a privacy law in 1974. Lawmakers succeeded, but lobbying from financial services companies ensured that it applied only to the government, not private firms. Impetus to regulate privacy in the private sector waxed and waned over the next 30 years, building with the first tech bubble, then evaporating in the horror of the 2001 attacks. In 2012, Barack Obama tried again and failed.

The core controversy is over whether a new federal law should override what some states have already done. The disagreement hinges on California, which adopted a new privacy law last year which will go into effect in 2020 and is broadly aligned with European regulations. Republicans and tech companies want the federal law to supersede California’s rules, replacing them with a something more permissive. Democrats want any federal law to match California’s standard.

Including pre-emption in the federal bill presents a political problem, regardless of beliefs about the correct level of privacy regulation. Any federal law must pass through a House presided over by Nancy Pelosi, from California’s 12th district. It is hard to imagine the House, which contains a powerful bloc of Californian Democrats, undermining the Speaker’s state.

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