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)’s 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.