Medical devicemakers urge Congress to pass federal data privacy law

Medical devicemakers are asking Congress to pass a federal data privacy law instead of allowing states to create their own out of fear that a patchwork of state-specific laws will put them at a global disadvantage, according to Bloomberg Law.

Currently, patient data privacy laws vary by each state, making it difficult for U.S. devicemakers to operate in the European market, which has some of the strictest patient protections in the world.

Chief executives of top U.S. companies, such as Amazon and Walmart, recently sent a letter to congressional leaders asking them to pass a "comprehensive consumer data privacy law" to protect consumer information and ensure digital innovation. The letter argued that a single federal standard for a privacy law is preferable to each state setting its own requirements.

However, patient data privacy bills from both Republicans and Democrats have stalled in Congress as the election year nears and an impeachment fight continues.

Companies like Johnson & Johnson and Boston Scientific are worried about states setting their own privacy standards similar to a California law, according to Bloomberg Law.

In 2018, California passed a law letting patients decline the sale of their data and giving them the right to sue if their information is stolen due to company negligence. Since the law was passed, seven other states have explored similar bills.

Any federal privacy bill would have to clarify which government agency would be in charge of regulating privacy laws. The Federal Trade Commission typically regulates data privacy and security in companies like devicemakers, but HHS manages HIPAA, which covers Medtech in some instances.

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