In Comments Submitted to the Data Privacy Working Group, Internet Works Urges Preemption of Conflicting State-by-State Laws with a Federal Standard to Facilitate Innovation and U.S. AI Leadership

Washington, D.C., April 7, 2025 — In response to a request for information (RFI) from the Data Privacy Working Group, led by U.S. Representatives John Joyce (R-PA) and Brett Guthrie (R-KY), Internet Works, the trade association representing Middle Tech companies, voiced its support for a federal privacy law that preempts conflicting state-by-state data privacy laws.  The RFI was issued by the Working Group to inform its consideration of a federal data privacy and security framework in future legislation. 

“Current state-by-state laws drive up compliance costs, stifle AI adoption, and favor large dominant incumbents over emerging competitors,” the association’s comments read.  “Internet Works supports a federal standard modeled after the Virginia Consumer Data Protection Act (VCDPA)—a risk-based, pro-innovation approach that protects consumers without imposing overly rigid mandates.  Instead of burdensome, one-size-fits-all regulations, a federal law should focus on practical security measures, streamlined compliance, and real-world cybersecurity threats. 


“Establishing a single national framework must preempt conflicting state laws. Eliminating the existing state-by-state patchwork of privacy laws will ensure that Middle Tech companies can innovate and grow and facilitate U.S. global competitiveness in AI.”

The entirety of Internet Works submission to the Working Group can be read here. 

The comments also go on to recommend that any new federal law include:  

  • A risk-based and role-specific approach to privacy
  • Primary enforcement authority granted to the Federal Trade Commission
  • Close alignment with requirements in the US-EU Data Privacy Framework to minimise the risk of challenges and barriers to data flows 
  • Safe harbor provisions that protect businesses that make good-faith compliance efforts
  • Clear definition of the scope of automated decision-making using AI systems that would trigger consumer opt-out rights

Internet Works’ member companies include: Automattic, Discord, Dropbox, eBay, Etsy, Eventbrite, Expedia Group, Glassdoor, Indeed, Intuit, Nextdoor, Patreon, Pinterest, Reddit, Roblox, Scribd, Tripadvisor, Trustpilot, Vimeo, Yahoo, and Yelp. 


About Internet Works

Internet Works is a coalition of over 20 diverse technology companies working together to right-size regulatory technology policy to foster trust and promote safety online so that the Internet remains a place of limitless possibility and innovation.  For more information, please visit www.TheInternet.Works.