Recommendation

Congress should amend laws like the Gramm-Leach-Bliley Act to make it easier for Americans to donate their data for altruistic purposes such as health care and educational research.

Details

Most data protection laws and regulations focus on reducing data sharing, such as requiring consumers to opt in before data collection can occur or providing consumers with details on how to opt out of data sharing. But few, if any, data protection laws and regulations focus on increasing data sharing, such as by encouraging consumers to donate their data for beneficial purposes. In effect, these policies encourage Americans to be selfish with their data. Policymakers should provide an opportunity for individuals to be altruistic with their data, particularly in high-value areas such as health care and education.

For example, under the Gramm-Leach-Bliley Act (GLBA), financial institutions must provide annual privacy notices to their customers outlining how their data is shared with third parties and provide consumers an opportunity to opt out of the sharing. But there are no similar policy mechanisms directing financial institutions to alert consumers of how they can increase data sharing. The Consumer Financial Protection Bureau should recommend an amendment to GLBA that includes a positive opportunity for consumers to donate their data, instead of only instructing them on how to opt out.

Keep reading:

▪ Gillian Diebold, “Overcoming Barriers to Data Sharing in the United States,” (ITIF Center for Data Innovation, September 2023), https://itif.org/publications/2023/09/25/overcoming-barriers-to-data-sharing-in-the-united-states/.