African implication of US Federal Financial Data Privacy Bill
Michael Irene is a data and information governance practitioner based in London, United Kingdom. He is also a Fellow of Higher Education Academy, UK, and can be reached via moshoke@yahoo.com; twitter: @moshoke
On the 23rd day of June 2022, a US representative in the House Financial Services Committee released a discussion of a financial data privacy bill. If this bill is passed, it will ensure that consumers have total control over how their personal information is used, and empowers them to terminate collection of data, or request deletion at any time.
Also, it will oblige what are called “covered entities” to disclose to consumers why they are collecting certain data, and to only use that data for its stated purpose and allow consumers an opportunity to opt out of the data collection. Another requirement has been placed on controllers in that they would be required to update their terms and conditions to carry simple languages that wouldn’t represent complexity and aim to achieve consistency across the country in relation to the whole management of consumer personal information.
Interestingly, various American states, due to legislative underpinnings, have drafted and implemented their own sort of privacy laws. California Consumer Privacy Act (CCPA), Gramm-Leach-Bliley Act (GLBA), Child Online Protection Act (COPA), just to mention those three, have a strong privacy hold in the US. However, the implementation of this new bill will have a more stringent demand on businesses within the US and the world.
The African implication, therefore, remains significant. As noticed when the EU General Data Protection Regulation rocked the African business ecosystem after the implementation of the regulation some four years ago, many businesses struggled especially in Africa to cope with the rather stringent laws and that led to a lot of guesswork and implementation of inchoate data privacy frameworks.
Again, the emergence of this present financial bill will affect African businesses that interrelate with American consumers and will shine a light on the lack of introspective approach towards data governance and how stakeholders pay attention to various trends globally. I’ve stated quite copiously in this space that the organisational thing for any modern business looking to win global market is to create and maintain a data governance team focusing mainly on assets (how the data would improve business), skillset (having all the necessary personnel that would aid the improvement of the business methodology and implementing the right approach) and, of course, governance (ensuring that there are certain ethics in using data and that data privacy laws are adhered to even as various facets of business are developed).
Without a doubt, the African continent seems to only follow when the West implements business acts. The onus is now on business leaders and stakeholders in Africa to use this present clime to start formulating acts that would impact the global data economy. Localising business approaches is not the best form of business now, but having a global mindset is what stakeholders in Africa need to start developing and this includes, creating and passing the right set of bills that would enable such businesses to leap in the global front. The time, of course, is now; but hopefully, the federal bill when passed in the US doesn’t significantly affect African businesses.
Michael Irene is a data and information governance practitioner based in London, United Kingdom. He is also a Fellow of Higher Education Academy, UK, and can be reached via moshoke@yahoo.com; twitter: @moshoke