The Electronic Signature & Records Association (ESRA) released a policy statement recommending a unified standard for consumer privacy and data protection laws.
The policy states, “Uniformity of consumer privacy and data protection legislation across all U.S. states is critical to the current and future utilization of electronic signatures and records which drive digital commerce.”
It notes that after California became the first state to enact a comprehensive consumer data privacy and protection law, there has been a wave of proposed consumer data privacy and protection legislation across states.
“Data protection bills in various states differ widely in their definitions of whose data is protected, what constitutes a data breach, and how digital service providers must establish processes and procedures to handle consumer data. Additionally, many of these laws are ignoring, or placing confusing exemptions around, the important online fraud prevention mechanisms that electronic signatures and records provide,” ESRA stated.
It notes that these differences have a chilling effect on companies that offer digital services across state lines.
Businesses of all sizes are beginning to understand the massive systems overall necessary to comply with 50 different laws as well as the legal implications of violating the laws.
“In an age where both consumers and businesses unquestionably rely on digital commerce, ESRA supports a national uniform standard that preempts state consumer privacy and data protection laws. A single unified standard is necessary to establish certainty for both consumers and businesses and to ensure the viability of digital commerce,” ESRA stated.