
Maine lawmakers this week failed to
pass a broad privacy bill that was opposed by ad industry groups and other businesses.
The Maine Online Data Privacy Act (LD 1822), which previously advanced in the statehouse, would have imposed sweeping restrictions on companies'
ability to collect data and target ads, and completely banned the sale of sensitive data.
Ad industry organizations urged lawmakers to reject the bill, arguing it was more
stringent than other state privacy laws.
"If enacted, LD 1822 would make the state’s approach to privacy an outlier in ways that would harm consumers and businesses of
all sizes," the Association of National Advertisers, American Association of Advertising Agencies, American Advertising Federation and Digital Advertising Alliance said in a letter sent to Maine
Senate members earlier this year.
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Among other provisions, the proposed law would have required companies to allow Maine residents to opt out of the use of their personal data
-- meaning information that's linked or linkable to devices or consumers -- for behaviorally targeted advertising.
The bill would also have prohibit companies from selling data
that can determine geolocation within a 1,750-foot radius, as well as biometric information, genetic data and information revealing race, ethnicity, health data, sexual orientation and citizenship
status.
It also would have prohibited companies from collecting sensitive data unless the information was "strictly necessary" to provide a product or service requested by
consumers.
Privacy advocates including the American Civil Liberties Union, Consumer Reports and the Electronic Privacy Information Center championed the measure, arguing it
would have protected consumers better than laws in other states that allow businesses to sell sensitive data as long as consumers consent.
The ad groups said the restrictions
on data collection would harm companies' ability to find new customers, and the ban on selling sensitive data would hinder businesses from "reaching individuals with relevant marketing."
The Maine Chamber of Commerce also weighed in against the proposed law.
“LD 1822, as written, goes too far and could hinder the ability of businesses to
operate, grow, and create jobs," the group stated.