American Privacy Rights Act (APRA): What Every U.S. Business Needs to Know in 2025
- The Spencer Law Firm
- Aug 13
- 12 min read
The American Privacy Rights Act (APRA) is a proposed federal law that would unify U.S. data privacy rules, giving consumers clear rights and requiring businesses to follow strict data collection, use, and sharing standards. If passed, APRA will impact how companies store, process, and monetize personal data, with enforcement by the FTC, state attorneys general, and private lawsuits.
1. What Is the American Privacy Rights Act (APRA)?
The American Privacy Rights Act (APRA) is a comprehensive proposed federal data privacy law in the United States, introduced in 2024 as a bipartisan effort to establish national privacy rights and protections for all Americans. Key features of APRA include:
It gives consumers specific rights regarding their personal data, such as the right to access, correct, delete, and receive their data in a portable format, as well as the right to opt out of targeted advertising and profiling.
The law targets companies that sell user data or have significant annual revenues (primarily those with $40 million or more, and especially "large data holders" with $250 million or more in revenue) and subjects them to data collection limitations, data minimization, and consumer opt-out protections.
APRA uniquely categorizes "Large Data Holders," who face stricter requirements such as maintaining data privacy and security officers, conducting privacy impact assessments, reporting to the Federal Trade Commission (FTC), and publishing extended privacy policies.
Sensitive personal data is broadly defined to include biometric, health, financial, and precise geolocation data, among others, with affirmative consumer consent required for collection or transfer of sensitive data.
The Act creates a federal data broker registry, regulates data brokers, and restricts mandatory arbitration clauses that limit consumer's legal recourse.
APRA preempts most state privacy laws but allows states to have stricter or more specific regulations than the federal baseline.
Enforcement powers are expanded beyond the FTC to include state attorneys general and private citizens, with provisions enabling companies a 30-day correction window after notification of a violation.
Some controversial revisions were made in 2024, such as the removal of certain civil rights protections and adjustments to enforcement mechanisms under pressure from lawmakers.
Certain entities, like small businesses (below $40 million revenue with limited data processing), government bodies, and specific nonprofits, are exempt from the law.
Overall, APRA aims to unify and strengthen privacy rights across the US, replacing the fragmented patchwork of state laws with a balanced federal framework emphasizing consumer control and accountability for large data holders.
2. Key Consumer Rights Under APRA
The American Privacy Rights Act (APRA) grants new and strengthened consumer rights specifically regarding data portability and correction as part of a broader set of consumer privacy rights:
Right to Data Portability: Consumers have the right to export or transfer their covered personal data to another service or entity in a format that is technologically feasible. This facilitates easier movement of personal data between providers, fostering competition and consumer choice.
Right to Correction: Consumers can request correction of any inaccuracies or incomplete information within their covered data, ensuring the data held by companies is accurate and up to date.
Right to Access: Related to these rights, consumers have the ability to access the covered data that companies hold about them, including information on any third parties who received their data and the purposes of such transfers.
These rights come with procedural requirements imposed on companies, such as timelines for responding to access, correction, and portability requests and limits on the frequency and cost to the consumer.
APRA also requires affirmative express consent for collecting or transferring sensitive data like biometric or genetic information, adding extra consumer control before sensitive data can be processed or shared.
The Act further envisions a centralized mechanism (to be developed by the FTC) that allows consumers to exercise opt-out rights and manage preferences for data processing across entities through a single interface.
In essence, APRA significantly enhances consumer authority over their personal data by codifying strong rights to access, correct, and move their data, along with protections for sensitive data and streamlined consumer controls, marking a major step toward comprehensive privacy protections in the U.S.
3. Which Businesses Must Comply?
The American Privacy Rights Act (APRA) applies to broad categories of businesses and entities defined as "covered entities." Here is a summary of which businesses must comply with APRA:
Covered Entities A "covered entity" is any organization or individual that:
Determines the purpose and means of collecting, processing, retaining, or transferring covered personal data
Is subject to the Federal Trade Commission Act
Includes common carriers under the Communications Act, 1934
Includes certain nonprofits not organized for profit
Includes entities controlled by or controlling other covered entities or sharing branding
Exemptions from Applicability APRA exempts certain businesses and organizations from compliance, including:
Federal, state, tribal, or local government entities and those acting on their behalf as service providers
Small businesses (defined below)
Individuals acting in a non-commercial context
The National Center for Missing and Exploited Children
Certain nonprofits with anti-fraud missions (though they remain subject to data security obligations)
Service providers acting on behalf of covered entities
Small Business Definition and Exemption A business qualifies as a small business exempt from APRA if, during the last 3 years or since establishment:
Annual gross revenue is $40 million or less
It does not collect, process, transfer, or retain covered data of more than 200,000 individuals (excluding payment-related data)
It does not transfer covered data for revenue or other value except as needed to complete payment transactions or facilitate limited web analytics
Large Data Holders (Stricter Obligations): Entities with $250 million or more in annual revenue and handling very large volumes of covered or sensitive data face additional requirements under APRA.
In summary, APRA primarily covers medium to large businesses and organizations that collect or handle personal data in the U.S. but exempts small businesses under $40 million in revenue with limited data handling and various nonprofits and government entities. This structure aims to regulate significant personal data handlers while easing burdens on smaller or exempt entities.
4. Enforcement and Penalties
The American Privacy Rights Act (APRA) establishes a multi-layered enforcement and penalties framework that aims to ensure compliance and provide remedies for violations through federal, state, and private mechanisms. Here are the detailed enforcement and penalty provisions:
Enforcement Authorities:
Federal Trade Commission (FTC)
The FTC is the primary federal enforcement agency for APRA.
It will establish a new bureau dedicated to enforcing the Act.
Violations under APRA are treated as unfair or deceptive trade practices under the FTC Act.
The FTC can impose penalties up to $10,000 for each violation.
It also administers a Privacy and Security Victims Relief Fund to provide consumer redress.
The FTC is tasked with issuing enforcement and administration reports to Congress.
State Attorneys General and State Consumer Protection Officers
State attorneys general and similar state officials can initiate enforcement actions in federal district courts.
They may seek injunctive relief, civil penalties, damages, restitution, consumer compensation, attorneys’ fees, and other appropriate relief.
States must notify the FTC before pursuing such actions.
Private Right of Action for Consumers
APRA grants consumers the right to file civil lawsuits against covered entities for violations of certain provisions.
Courts may award compensation, injunctions, declaratory relief, and litigation costs in these cases.
This private right of action is a distinctive feature compared to some previous privacy laws, although it has been subject to political debate and may evolve.
Penalties and Remedies:
The FTC may levy fines up to $10,000 per violation, considering violations as unfair or deceptive practices.
State enforcement may involve civil penalties, damages, and other financial restitution to consumers.
Consumers can seek legal remedies including damages and court orders to stop unlawful practices.
The act of allowing individuals to directly sue may incentivize stronger compliance from businesses.
Additional Enforcement Features:
Data brokers are specifically regulated with mandatory registration and consumer opt-out tools, overseen by the FTC.
The enforcement framework aims to create a robust mechanism that holds large data holders and other covered entities accountable while providing multiple channels for redress.
In summary, APRA’s enforcement combines federal oversight by the FTC, state-level legal actions, and private citizen lawsuits, creating a comprehensive regime designed to ensure effective compliance and strong consumer protections with significant penalties for violations
Which types of businesses are explicitly excluded from APRA compliance
The American Privacy Rights Act (APRA) explicitly excludes the following types of businesses and entities from compliance:
Small businesses: Defined as those with $40 million or less in annual revenue, who collect, process, retain, or transfer covered data of 200,000 or fewer individuals, and that do not earn revenue from transferring covered data to third parties (such as data brokers).
Government entities: Federal, state, tribal, and local government bodies, as well as entities acting on their behalf as service providers, are excluded.
Certain nonprofits: Nonprofits primarily focused on preventing, investigating, or deterring fraud are exempted from APRA’s requirements.
National Center for Missing and Exploited Children (NCMEC): This specific organization is excluded.
Additionally, APRA excludes compliance for entities already covered by other federal laws, such as the Gramm-Leach-Bliley Act or HIPAA, treating them as compliant by default. The Act also excludes certain types of data from its scope, such as de-identified data, employee data, and publicly available information.
This means medium to large commercial businesses handling extensive personal data are mainly targeted by APRA, while smaller entities and specific categories of organizations are explicitly exempted to reduce regulatory burden.
5. How APRA Compares to Existing State Laws
The American Privacy Rights Act (APRA) and existing state privacy laws in the U.S. share many common goals but also differ in key ways. Here is a detailed comparison highlighting how APRA compares to state laws such as California’s CCPA/CPRA, Virginia’s CDPA, Colorado’s CPA, and others:
Scope and Preemption
APRA is a proposed federal law designed to create a national baseline for privacy rights and business obligations, aiming to preempt most state privacy laws but allowing states to enact stricter or more specific regulations.
State laws apply primarily within each state to residents and businesses operating there, leading to a patchwork of laws with varying scopes, definitions, and requirements.
APRA targets larger businesses nationally, while some state laws have lower thresholds or different criteria for applicability.
Consumer Rights
Both APRA and state laws grant robust consumer rights like access, correction, deletion, and data portability.
APRA notably provides rights similar to state laws but adds a federal private right of action for consumers, which exists under California’s CCPA/CPRA but is generally absent in most other states.
Consent requirements and sensitive data handling under APRA are more standardized nationally, contrasting with some state laws that vary definitions and rules for sensitive data.
Data Minimization and Usage Restrictions
APRA mandates a strict data minimization principle, allowing businesses to only collect data necessary for specific purposes.
State laws such as Virginia’s and Colorado’s also require data minimization but APRA may enforce a more centralized and standardized approach.
APRA explicitly prohibits discriminatory data use and restricts certain profiling practices, which aligns with but may be broader than some state frameworks.
Large Data Holders and Obligations
APRA introduces “Large Data Holder” category with enhanced compliance duties, akin to California’s more granular requirements for bigger companies under CPRA.
Many state laws do not differentiate obligations based on company size to the same extent or do so with different thresholds.
Enforcement and Penalties
APRA enforces compliance via the Federal Trade Commission (FTC), state attorneys general, and a private right of action for consumers, combining federal, state, and private enforcement.
State laws are enforced primarily by state attorneys general; only California and a few others provide private rights of action.
APRA establishes uniform penalties up to $10,000 per violation, while state laws have varying penalty structures.
Preemption of State Laws
APRA’s federal framework seeks to reduce the complexity of compliance by preempting most state laws, except where states have chosen to enact more stringent protections.
Without federal preemption, businesses currently navigate multiple state laws with different definitions, thresholds, and obligations—resulting in high compliance complexity.
Exemptions and Coverage
APRA exempts small businesses under certain revenue and data volume thresholds, similar to many state laws, but the dollar thresholds and definitions vary by state.
Some state laws exclude employee and B2B data from coverage (e.g., most states except California), while APRA applies broadly but with specific carve-outs.
Summary Table of Key Comparisons
Aspect | APRA | State Privacy Laws (e.g., CCPA/CPRA, CDPA, CPA) |
Coverage | Nationwide (federal) | State-specific, applies to residents/businesses in each state |
Preemption | Yes, preempts most state laws | No preemption; patchwork varies |
Consumer Rights | Access, correction, deletion, portability, opt-out, private right of action | Similar, private right of action mainly in CA |
Data Minimization | Strict national requirement | Required but varies in scope and enforcement |
Sensitive Data Handling | Uniform definitions, explicit consent required | Varying definitions and consent rules |
Enforcement Authorities | FTC, State AGs, Private Action | Primarily State AGs, some private rights of action |
Penalties | Up to $10,000 per violation | Varies by state (fines, damages, statutory damages in CA) |
Large Data Holder Obligations | Enhanced duties for large entities | Similar concepts in some states (like CA CPRA for large businesses) |
Exemptions | Small businesses under $40M revenue | Varies; thresholds differ widely |
In essence, APRA aims to unify and standardize privacy protections and business obligations across the U.S., reducing the patchwork and inconsistencies caused by multiple state laws. While most state laws share similar foundations—consumer rights, data minimization, sensitive data protections—APRA would provide a single federal framework with expanded enforcement options and consistent requirements.
This federal approach contrasts with the existing fragmented state landscape, where businesses must continually adapt to different legal regimes depending on the state. APRA could simplify compliance, especially for large companies operating nationally, while maintaining or exceeding many of the strongest privacy protections found in state laws like California’s CPRA.
6. How will APRA's data minimization affect company data collection practices
The American Privacy Rights Act's (APRA) data minimization provisions will significantly impact company data collection practices by imposing much stricter limits on how businesses collect, use, retain, and transfer personal data. Here’s how:
APRA requires that companies only collect and process personal data that is necessary, proportionate, and limited to providing or maintaining a specific product or service requested by the user. Any data collection beyond what is essential for that purpose would generally be prohibited.
The law establishes a default presumption against broad or exploratory data collection practices, meaning companies cannot justify extensive data gathering simply by consumer agreement or broad privacy policies.
APRA introduces a set of narrowly defined “permitted purposes” under which data processing is allowed. If a data processing activity does not fall within these purposes, it would be considered illegal.
This means companies will need to carefully assess and document the necessity of each type of data they collect and how it directly supports a product or service. Routine administrative activities like billing or shipping are explicitly included, but data collection solely for secondary uses like marketing or profiling will be restricted unless specifically authorized.
APRA’s approach to data minimization is notably stricter and more explicit than most previous U.S. privacy laws, marking a significant shift from the usual permissive approach that lets companies collect data broadly as long as they disclose it.
For sensitive data categories like biometric or genetic information, even higher standards apply, including affirmative consumer consent and tighter restrictions on transfer and use.
The law’s strict data minimization rules could reduce the scale of data collection and retention, limiting businesses’ ability to amass large data sets for purposes like targeted advertising, profiling, or broad analytics, unless expressly allowed.
Companies will likely need to implement robust processes to limit and monitor data collection and usage, potentially reducing certain types of innovation and data-driven services, as each data use case must be justified under the permitted purposes.
Overall, APRA will push companies toward a culture of data minimalism—collecting only what is truly necessary for the consumer-requested service and growing accountability around data processing decisions. This realignment aims to reduce privacy risks by shrinking the amount of personal data held and processed beyond essential purposes.
In summary, APRA’s data minimization will create a legal environment in which unrestricted or excessive data collection practices are curtailed, demanding that companies justify and tightly limit their data handling activities to what is necessary for specific, predefined purposes.
How would the APRA change the way companies handle user data
The American Privacy Rights Act (APRA) would significantly change the way companies handle user data in multiple key ways:
Consumer Control and Rights: Companies would need to give consumers greater power over their data, including rights to access, correct, delete, and port their personal information between services. Consumers would have the ability to block companies from transferring or selling their data, and opt out of targeted advertising and profiling.
Data Minimization: Businesses would only be able to collect, retain, and use the minimum amount of data necessary to provide a specific product or service or for legally permitted purposes. This is a shift from current practices where companies often gather extensive data, sometimes beyond what is strictly needed.
Sensitive Data Protections: The law requires affirmative express consent from consumers before transferring sensitive personal data (e.g., biometric, genetic, health data) to third parties.
New Obligations for Large Data Holders: Companies with large volumes of data or high revenues would need to appoint privacy and data security officers, conduct privacy impact assessments, implement strong data security standards to prevent breaches, and maintain compliance reporting to regulators like the FTC.
Prohibition of Discriminatory Data Use: APRA would prohibit companies from using collected data to discriminate against protected classes (race, gender, national origin, etc.) and would regulate algorithmic decision-making practices to ensure fairness.
Centralized Consent Management: Businesses will need to establish centralized mechanisms for managing consumer consent and data preferences.
Data Broker Regulation and Registration: Companies that buy and sell personal data would have to register as data brokers, and face new compliance requirements.
Legal Enforcement Changes: Unlike many state laws, APRA would allow individuals to sue companies for any violations of the law, significantly increasing potential legal exposure for companies.
Overall, APRA aims to create a standardized federal framework that requires companies to prioritize data minimization, transparency, user control, and anti-discrimination, while enforcing stricter data security and governance practices, especially for larger data handlers. This represents a fundamental shift toward more accountable and privacy-focused data handling by businesses in the U.S.
7. Compliance Checklist for Businesses
Review Data Flows: Identify all data you collect, store, and share.
Update Privacy Policies: Align with APRA rights and requirements.
Build Consumer Request Systems: Online forms or portals for data access/deletion.
Train Staff: Privacy and security awareness for all employees.
Vet Vendors: Ensure partners and contractors meet APRA standards.
Document Compliance: Keep records to prove you’re following the law.
8. Frequently Asked Questions (FAQ)
Q1: When will APRA take effect?
If passed in 2025, businesses would likely have 12–18 months to comply.
Q2: Will APRA replace state privacy laws?
Mostly, yes—except for stricter state laws on topics like civil rights or health privacy.
Q3: Does APRA apply to nonprofits?
Yes, but with certain limited exemptions depending on the type of data they process.
Q4: What counts as “sensitive data”?
Health info, financial accounts, precise geolocation, biometric data, and children’s data.
Q5: How will APRA affect online advertising?
It will require explicit opt-outs for targeted ads and limit the use of sensitive data for ad targeting.
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