In light of the recent surge in the scrutiny of the use of consumer data in the tech industry, a US senator has now submitted a proposal for legislation that would impose heavy penalties on companies and executives who misuse their users' data.
The new privacy-focused bill, called the Mind Your Own Business Act, could place added pressure on tech giants such as Facebook, Twitter, and Instagram, all of which are now being probed by regulators domestically and abroad. Under the proposed bill, top executives of companies found to be guilty of failing to protect consumer data could be facing up to 20 years in jail.
Apart from possible jail time, companies who are caught lying to authorities regarding their use of consumer data could also face steep tax penalties that are tied to their executives' salaries. The new bill was submitted by Oregon Democratic Senator Ron Wyden. The senator has been very vocal about his criticism towards the activities of social media platforms.
Wyden openly slammed Facebook's recent $5 billion Cambridge Analytica scandal settlement, which he stated was too low for what the company had done. In an interview this week, Wyden stated that Zuckerberg should face "personal consequences" so that he will take his company's privacy practices more seriously.
The Democratic senator called the $5 billion fine as nothing more than a "slap on the wrist" for Facebook and the FTC should have imposed a much heavier punishment.
Part of the bill also places additional powers to the US' Federal Trade Commission for it to better deal with companies that violate the proposed law. According to the proposed legislation, the FTC can fine guilty companies up to 4 percent of their annual revenues.
Along with the FTC, the bill also proposing that consumer advocacy groups be given the right to file lawsuits against any company that is found to be involved in privacy violations. Wyden aims to have his proposed legislation work with existing privacy laws, such as California's Consumer Privacy Act.
The proposed bill expands on draft legislation that was submitted last fall, including a requirement for all social media platforms to provide a "one-click" solution for users to be able to opt-out of activity tracking and the sharing or selling of their personal information.
The submission of the proposed bill comes as Facebook's CEO Mark Zuckerberg faces added scrutiny from privacy watchdogs for its activities. Zuckerberg recently delivered a speech on the freedom of speech and expression at Georgetown University on Thursday.
