Justice Department rule aims to curb the sale of Americans\u2019 personal data overseas | CyberScoop<\/title> <meta name=\"description\" content=\"The proposed regulation imposes a series of restrictions on how American entities can sell \u201cbulk\u201d sensitive data across six categories.\"> <link rel=\"canonical\" href=\"https:\/\/cyberscoop.com\/justice-department-data-broker-regulation-china-russia-iran\/\"> <meta property=\"og:locale\" content=\"en_US\"> <meta property=\"og:type\" content=\"article\"> <meta property=\"og:title\" content=\"Justice Department rule aims to curb the sale of Americans\u2019 personal data overseas\"> <meta property=\"og:description\" content=\"The proposed regulation imposes a series of restrictions on how American entities can sell \u201cbulk\u201d sensitive data across six categories.\"> <meta property=\"og:url\" content=\"https:\/\/cyberscoop.com\/justice-department-data-broker-regulation-china-russia-iran\/\"> <meta property=\"og:site_name\" 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js-stickybar\" readability=\"0.82\"> <button class=\"stickybar__close js-stickybar-close\" aria-controls=\"stickybar\"> <svg class=\"icon icon--close\" width=\"21\" height=\"22\" viewBox=\"0 0 21 22\" fill=\"none\"><path d=\"m.822.518-.805.805L9.695 11 .017 20.678l.805.805 9.678-9.678 9.677 9.678.806-.805L11.305 11l9.678-9.677-.806-.805-9.677 9.677L.822.518Z\" fill=\"currentColor\" \/><\/svg> <span class=\"visually-hidden\">Close<\/span> <\/button> <\/section>\n<article class=\"single-article content\">\n<div class=\"single-article__container js-single-article-content\">\n<header class=\"single-article__header \" readability=\"25.334608030593\">\n<div class=\"single-article__header-content\" readability=\"34.042553191489\">\n<p> The proposed regulation imposes a series of restrictions on how American entities can sell \u201cbulk\u201d sensitive data across six categories. <\/p>\n<p>  <br \/>\n<audio id=\"audio-player\" src=\"https:\/\/wp-tts-cdn.api.scpnewsgrp.com\/cyberscoop\/82226\/english.openai.mp3\"><\/audio> <\/p>\n<div readability=\"11\">\n<div>\n<p>Listen to this article<\/p>\n<p>  <\/p>\n<p>0:00<\/p>\n<\/p><\/div>\n<p>  <\/p>\n<p> <span id=\"tts-tooltip\">Learn more.<\/span> <span> This feature uses an automated voice, which may result in occasional errors in pronunciation, tone, or sentiment. <\/span> <\/p>\n<\/div>\n<p>  <\/div>\n<div class=\"single-article__cover-wrap\">\n<figure class=\"single-article__cover\"> <img data-recalc-dims=\"1\" fetchpriority=\"high\" width=\"640\" height=\"426\" src=\"https:\/\/i0.wp.com\/ddi.mohflo.net\/wp-content\/uploads\/2024\/10\/justice-department-rule-aims-to-curb-the-sale-of-americans-personal-data-overseas.jpg?resize=640%2C426&ssl=1\" class=\"single-article__cover-image wp-post-image\" alt decoding=\"async\" fetchpriority=\"high\" srcset=\"https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/10\/justice-department-rule-aims-to-curb-the-sale-of-americans-personal-data-overseas-2.jpg 5760w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/10\/justice-department-rule-aims-to-curb-the-sale-of-americans-personal-data-overseas-2.jpg?resize=300,200 300w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/10\/justice-department-rule-aims-to-curb-the-sale-of-americans-personal-data-overseas-2.jpg?resize=768,512 768w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/10\/justice-department-rule-aims-to-curb-the-sale-of-americans-personal-data-overseas-2.jpg?resize=1024,683 1024w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/10\/justice-department-rule-aims-to-curb-the-sale-of-americans-personal-data-overseas-2.jpg?resize=1536,1024 1536w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/10\/justice-department-rule-aims-to-curb-the-sale-of-americans-personal-data-overseas-2.jpg?resize=2048,1365 2048w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/10\/justice-department-rule-aims-to-curb-the-sale-of-americans-personal-data-overseas-2.jpg?resize=600,400 600w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/10\/justice-department-rule-aims-to-curb-the-sale-of-americans-personal-data-overseas-2.jpg?resize=252,168 252w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/10\/justice-department-rule-aims-to-curb-the-sale-of-americans-personal-data-overseas-2.jpg?resize=506,337 506w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/10\/justice-department-rule-aims-to-curb-the-sale-of-americans-personal-data-overseas-2.jpg?resize=1013,675 1013w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/10\/justice-department-rule-aims-to-curb-the-sale-of-americans-personal-data-overseas-2.jpg?resize=1265,843 1265w\" sizes=\"(max-width: 1013px) 100vw, 1013px\"><figcaption> US Department of Justice building and the American flag under the sun, Washington DC, United States <\/figcaption><\/figure>\n<\/p><\/div>\n<\/header>\n<div class=\"single-article__content\">\n<div class=\"single-article__content-inner has-drop-cap\"> <html readability=\"75.181627453919\"><body readability=\"151.5264446621\"><\/p>\n<p>The Justice Department has formally proposed new regulations that would prevent or restrict the selling and transferring of Americans\u2019 sensitive personal data to adversarial countries.<\/p>\n<p>The<a href=\"https:\/\/www.justice.gov\/d9\/2024-10\/nsd_104_-_data_security_-_1124-aa01_-_notice_of_proposed_rulemaking_0.pdf?utm_medium=email&utm_source=govdelivery\"> proposed rule<\/a>, first previewed in March, stems from an <a href=\"https:\/\/cyberscoop.com\/data-broker-executive-order-china\/\">executive order<\/a> issued by the Biden administration in February and imposes a series of restrictions on how American entities can sell \u201cbulk\u201d sensitive data across six categories: personal data like driver\u2019s license and Social Security numbers, precise geolocation data, biometric identifiers, human genomic data such as DNA, health information and financial information.<\/p>\n<p>It would also impose a blanket prohibition on selling such bulk data to six nations \u2014 China, Russia, Iran, North Korea, Cuba and Venezuela \u2014 designated as \u201ccountries of concern,\u201d meaning their acquisition of Americans\u2019 personal data represents a potential national security risk.<\/p>\n<p>The revised version, released Monday, adds new exemptions for telecommunications services, clinical trial data needed to obtain regulatory approval to research or market pharmaceuticals or medical devices in a country of concern, and clinical trial data needed for Food and Drug Administration applications related to pharmaceuticals and medical devices. <\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>The revised rules also require companies to report third-party involvement in a sale, explain how the rules align with other federal bodies, like the Committee on Foreign Investment in the United States, and provides unclassified examples of non-compliant transactions or behaviors.<\/p>\n<p>\u201cUnder the proposed rule, U.S. persons transacting in these kinds of data will need to establish a compliance program based on the individual risk profile of their activities,\u201d a senior DOJ official said. \u201cThey will need to understand the kinds and volumes of data they transact, who they are doing business with and how that data is being used, and the safeguards they use to control access to that data.\u201d<\/p>\n<p>Americans frequently share vast amounts of personal information through social media, online shopping, medical visits or government benefits. Companies collect and sell this data to larger data brokers, who compile granular profiles of consumers that can be sold to the highest bidder.<\/p>\n<p>The regulation would prevent U.S. individuals or companies from directly selling personal data to foreign entities that are at least 50% owned by or located in a country of concern, foreign employees of contractors, foreign individuals who reside in countries of concern, or individuals specifically listed by the DOJ as a covered person.<\/p>\n<p>Data brokerage, as well as transferring bulk human genomic data or biospecimens to any listed countries, would be barred under the rule. Vendor, employment and non-passive investment agreements, meanwhile, would need to pass requirements being developed by the Cybersecurity and Infrastructure Security Agency around encryption, data minimization, physical and logical access controls and privacy.<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>A senior Department of Homeland Security official said the security requirements will be based on the National Institute of Standards and Technology\u2019s cybersecurity and privacy frameworks, and attempts to strike a balance between national security and freemarket economic principles.<\/p>\n<p>\u201cWe\u2019re seeking to achieve these goals as much as possible without disrupting free flow of data across borders, including by providing flexibility for various types of restricted transactions while, at the same time, not undermining the policy goals of the security requirements,\u201d the official said.<\/p>\n<p>Each category of data covered under the rule is subject to different thresholds depending on the sensitivity of the data. For example, a company would be prohibited from selling geolocation data on more than 1,000 U.S. devices to a company headquartered in China, or hiring a laboratory in China to analyze the DNA samples of more than 100 U.S. persons.<\/p>\n<p>Meanwhile, a company that holds financial or health data for more than 10,000 U.S. individuals must follow CISA\u2019s security requirements if it grants a Russian investor an equity stake, hires a China-based company for data storage or processing, or employs workers who primarily reside in China.<\/p>\n<p>The DOJ, along with the Departments of State, Commerce and Homeland Security, would have the authority to issue licenses to bypass the proposed rules, but the government anticipates doing so \u201conly in rare circumstances.\u201d<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>The United States has lagged Europe and other parts of the world when it comes to updating privacy laws for the digital age and reining in data brokers who buy, bundle and sell massive amounts of Americans\u2019 personal data to advertisers, marketers and foreign nations. <\/p>\n<p>On a call with reporters, senior DOJ officials said the department received 67 comments on the advanced proposed rule and heard feedback from over 100 companies, industry groups and other stakeholders.<\/p>\n<p>Brandon Pugh, director of cybersecurity and emerging threats at the R Street Institute, a right-leaning think tank, told CyberScoop that the new proposed regulations represent a \u201cpartial solution\u201d to the problem of foreign countries gathering Americans\u2019 personal data, but noted that current laws and regulations around data privacy in the United States still offer numerous pathways to accomplish the same goal.<\/p>\n<p>\u201cThere are definitely ways that adversaries \u2026 are going to access this data, and this is not going to address them all,\u201d Pugh said. \u201cThey can steal it, they can rely on data in breaches \u2014 or cause the breaches themselves.\u201d<\/p>\n<p>This year, a bipartisan group in Congress worked to agree on a comprehensive privacy bill that would limit the data that businesses can collect on their customers, <a href=\"https:\/\/cyberscoop.com\/congressional-privacy-bill-looks-to-rein-in-data-brokers\/\">shining a light<\/a> on the largely unregulated data broker industry. <\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>However, after <a href=\"https:\/\/cyberscoop.com\/federal-privacy-bill-passes-house-subcommittee\/\">initial optimism<\/a> about the bill\u2019s prospects, momentum stalled as the coalition fell victim to infighting and disagreement. It is not expected to move further this year with presidential and congressional elections just weeks away. <\/p>\n<p><\/body> <\/p>\n<footer class=\"single-article__footer\" readability=\"3.5897435897436\">\n<div class=\"author-card\" readability=\"13\">\n<div class=\"author-card__avatar\">\n<figure class=\"author-card__image-wrap\"> <img data-recalc-dims=\"1\" decoding=\"async\" class=\"author-card__image\" src=\"https:\/\/i0.wp.com\/ddi.mohflo.net\/wp-content\/uploads\/2024\/10\/justice-department-rule-aims-to-curb-the-sale-of-americans-personal-data-overseas-1.jpg?w=640&ssl=1\" alt=\"Derek B. Johnson\"> <\/figure>\n<\/p><\/div>\n<p><h4 class=\"author-card__name\">Written by Derek B. Johnson<\/h4>\n<p> Derek B. Johnson is a reporter at CyberScoop, where his beat includes cybersecurity, elections and the federal government. Prior to that, he has provided award-winning coverage of cybersecurity news across the public and private sectors for various publications since 2017. 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{"id":5863,"date":"2024-10-21T15:00:38","date_gmt":"2024-10-21T20:00:38","guid":{"rendered":"https:\/\/cyberscoop.com\/?p=82226"},"modified":"2024-10-21T15:00:38","modified_gmt":"2024-10-21T20:00:38","slug":"justice-department-rule-aims-to-curb-the-sale-of-americans-personal-data-overseas","status":"publish","type":"post","link":"https:\/\/ddi.mohflo.net\/index.php\/2024\/10\/21\/justice-department-rule-aims-to-curb-the-sale-of-americans-personal-data-overseas\/","title":{"rendered":"Justice Department rule aims to curb the sale of Americans\u2019 personal data overseas"},"content":{"rendered":"