Consumer Data Privacy

Last Updated: September 16, 2024

The Issue

In response to advances in technology, numerous media reports about privacy abuses, and the proliferation of state legislation on consumer data privacy, Congress is considering proposals to create a federal privacy law and grant consumers rights with respect to information about them.

Retail Impact

Almost every industry, including the convenience industry, handles large volumes of consumer information.  The convenience industry conducts over 160 million transactions each day and sells more than 80% of the U.S. motor fuels with more than half the sales on payment cards.  Many convenience retailers offer customer wards and benefits as part of enhancing the consumer experience.

Sectors of the technology, telecommunications, and banking industries have been working at the state and federal levels to try to win exemptions from privacy legislation or special rules that put consumer-facing businesses, including the convenience industry, at risk of liability for the privacy practices of other businesses.  That risk could be extensive for many in the industry, especially small businesses.

NACS Position

NACS believes any federal privacy legislation should apply to all industry sectors rather than shifting the requirements onto the retail sector of the economy.  A federal law should not pick regulatory winners and losers among different business sectors, nor should it exempt any industry or business.  Only by ensuring all businesses are responsible for their own data practices can legislation protect consumers without loopholes.  In addition, consumer-facing businesses should not be required to use contracts with their service providers and take on the role of enforcing compliance with privacy practices on businesses with which they work.

NACS also believes that any federal data privacy framework should preserve the relationship between businesses and their customers.  It must ensure that customers are able to receive all of the products and services they expect from retailers – including discounts or enhanced services they earn from being loyal customers.  For businesses to offer such loyalty programs, they must keep track of transactions with customers who choose to enroll in these programs in order to offer rewards.

Latest Updates

Protecting consumer data privacy continues to be important to Congress, and House and Senate Committees continue to hold hearings and work on legislative proposals.  To date, no privacy legislation has been voted on at the committee level.  NACS is a founding member of the Main Street Privacy Coalition, which is working with key stakeholders in advocating for a federal privacy framework.