By TOM STEBBINS //
Internet and technology companies remain the target of political attacks from leaders on both sides of the aisle and across all levels of government.
But officials do not seem interested in thoughtful or reasonable policymaking, especially when it comes to enforcement. They appear content to abdicate responsibility and hand that role over to private law firms.
Time and time again, the representatives we send to Albany and Washington evade government accountability and instead empower profit-motivated attorneys to act as regulatory bodies.
Bashing America’s tech sector has become an easy route for elected officials to gain clout and grab headlines. Politicians’ misguided posturing about perceived ideological biases (on both sides), content moderation, data privacy, even the alleged sin of being too big and successful – all of it threatens our nation’s most innovative companies.
Tom Stebbins: Private thoughts.
Recently introduced by Long Island State Sen. Kevin Thomas (D-Garden City), the New York Privacy Act is likely to be considered by the New York State Legislature before the current session ends. Data privacy is among the most significant issues facing society in our increasingly digital age, but the details of any proposal to tackle the issue are critical – and must center around protecting consumers, not enriching powerful special interests like trial lawyers.
This is where the New York Privacy Act misses the mark. As written, the bill contains a private right of action, which effectively deputizes private attorneys to act as for-profit government enforcers.
Private rights of action are touted as a way to allow consumers to hold bad actors accountable through lawsuits. But in reality, they create a perverse incentive for private lawyers to file class-action lawsuits in search of quick settlements.
Personal injury trial lawyers collect the highest fees when they target the deepest pockets. And larger institutions are more inclined to settle, rather than suffer the expense of litigation and the bad press that comes with a lawsuit.
This means that the worst offenders are not necessarily the targets of these private enforcement actions – the most successful are.
And even worse news for consumers: Class-action settlements serve only to enrich the lawyers and often lead to little or no recovery for the class of plaintiffs.
To truly protect consumers and bring bad actors to justice, enforcement should be entrusted solely to the capable hands of New York’s state agencies. Policymakers should make policy decisions. So, when it comes to crucial policy decisions like how to regulate consumer data, lawmakers should eschew the powerful trial lawyer lobby and scrap the private rights of action they propose here, and in other tech-targeting bills.
And before trotting out their “tough on tech” talking points, politicians should recognize that Internet-enabled platforms have kept us all connected – especially when public health dictated the need to stay apart.
Let’s hope legislators recognize these realities, and drop their hostility toward tech.
Tom Stebbins is executive director at the Lawsuit Reform Alliance of New York.
