Hopeful for better data protection: Why the ADPPA is a great start?

As the use of AI becomes prevalent in talent acquisition software, along with a plethora of other industries, the question of data protection is taking center stage.  

This is why many are eagerly following the progress of The American Data Privacy and Protection Act (ADPPA), a federal bill that would create a framework protecting consumers’ individual data privacy rights, specifically when interacting with AI. 

While the ADPPA isn’t the first of its kind – similar bills have been drafted in the past – it’s unique because of how close it’s come to passing. 

In summer of 2022, the House Energy and Commerce Committee voted 53-2 for the bill to advance to the House of Representatives for a floor vote. While it’s yet to be passed, the ADPPA has bipartisan support, causing optimism among data privacy activists.

At TalentNet, we’re proud to make use of machine learning’s exciting capabilities through our platform’s AI-enabled job matching feature. Still, we recognize the importance of data security.

“As an innovative tech company, we understand that TalentNet has a serious responsibility to protect our users’ data privacy,” said Eddy Han, TalentNet’s VP of Security, Compliance and Data Privacy, adding that the company meets rigid data privacy and security requirements, including SOC 2 Type II and ISO 27001: 2019, 27017:2015 certifications. 

This is why TalentNet supports the ADPPA, while at the same time recognizing that further clarification is needed before the bill is passed into law. 

Understanding the ADPPA

While some U.S. states, like California and Virginia, already have data privacy legislation in place, there’s currently no federal law, creating a patchwork system of privacy protection. If it passes, the ADPPA would be similar to Europe’s General Data Protection Regulation (GDPR) – a substantial data security law that protects all EU citizens from misuse of data or privacy breaches. 

The legislation aims to protect covered data, which is defined as any identifiable info collected online, such as one’s name, address, phone number etc. Measures introduced in the bill include:

Protecting consumer rights. Consumers would have the right to access, correct, delete or transfer covered data. They’ll also be able to request their data from the past 12 months and ask companies to delete their data.  

Allowing an opt out option. Companies not exempt from the law would have to let consumers opt out of having their data transferred to a third party. Consumers would also be able to opt out of being targeted by digital ads.

Increased transparency. Companies would have to reveal the types of data they’re collecting, why they’re collecting it and how long they plan to store the data.  

While the law has potential, there are still questions about what type of entities would have to abide by this act. As it stands today, small businesses would be exempt, as would government entities. There’s also some controversy over the fact that this law, if passed, would take precedence over any state law, such as California’s Privacy Rights Act, which some argue provides more protection than the ADPPA. 

Why it matters: protecting customer privacy

At TalentNet we support our clients’ rights for data privacy, which is why our platform has a number of data security measures in place, and why we continue to enhance our processes in order to meet all compliance requirements. 

While there are still questions around the bill’s scope, the ADPPA is an important step for lawmakers aiming to create a singular privacy law that would protect all U.S. consumers.

“We believe creating a singular governing body aimed at protecting data security would be a pivotal achievement for the country as a whole,” Han said. “While we’re still waiting on clearer definitions of scope, coverage and data, we’re hopeful a law protecting all American consumers will soon pass.” 

Understanding consumer concerns

It’s no surprise that data privacy matters to consumers, especially since 37% of organizations surveyed in a recent Gartner study admitted to using AI in some capacity. According to a Blumberg Capital survey, 52% of consumers are skeptical AI will keep their private information safe.  

If passed, the ADPPA will affect every U.S.- based citizens using, processing or transferring personal data. Under the legislation, there will be new requirements for assessments that include AI and automated decision making. 

Working towards a better future

As a cutting-edge talent acquisition firm, TalentNet is eager to move towards more clarity in the industry while protecting our clients’ fundamental rights to data privacy. To better understand our solution and how we’re working to ensure your private information is kept safe, book a demo here.