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Written by Paul M. Schwartz [View as PDF]
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118 Yale L.J. 902 (2009).
A broad coalition, including companies formerly opposed to
the enactment of privacy statutes, has now formed behind the idea of a national
information privacy law. Among the benefits that proponents attribute to such a
law is that it would harmonize the U.S. regulatory approach with that
of the European Union and possibly minimize international regulatory conflicts
about privacy. This Essay argues, however, that it would be a mistake for the United States
to enact a comprehensive or omnibus federal privacy law for the private sector
that preempts sectoral privacy law. In a sectoral approach, a privacy statute
regulates only a specific context of information use. An omnibus federal
privacy law would be a dubious proposition because of its impact on
experimentation in federal and state sectoral laws, and the consequences of
ossification in the statute itself. In
contrast to its skepticism about a federal omnibus statute, this Essay views
federal sectoral laws as a promising regulatory instrument. The critical
question is the optimal nature of a dual federal‑state system for information
privacy law, and this Essay analyzes three aspects of this topic. First, there
are general circumstances under which federal sectoral consolidation of state
law can bring benefits. Second, the choice between federal ceilings and floors
is far from the only preemptive decision that regulators face. Finally, there
are second‑best solutions that become important should Congress choose to
engage in broad sectoral preemption.
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