Slow federal action likely on consumer data protection

California voters may approve a proposition in November that reflects some of the provisions of the European Union’s General Data Protection Regulation, but most experts do not expect comparable federal legislation in the immediate future.

“I expect that you will see (legislation or regulation) more readily at the state level than at the federal level,” which is more subject to gridlock, said Scott L. Vernick, a partner with Fox Rothschild L.L.P. in Philadelphia.

“I would imagine we’re going to see a lot more activity at the federal level,” said Annie O’Leary, Chicago-based senior broker with Aon P.L.C.’s professional risk solutions group.

“There’s been more conversations at that level, but from what we’ve seen” at Senate and House committees, “there’s still a lot of education that needs to come about first. States are better poised” to enact legislation based on what they have done over the past two decades when it comes to privacy legislation, she added.

The Senate has been trying to get some type of legislation through, she said.

While there is “often a lot of criticism these days of the federal government’s inability to accomplish legislation, I’m not a very strong supporter of that criticism — I think a lot of it still gets done,” said Matthew McCabe, New York-based senior vice president with Marsh L.L.C.’s cyber practice.

“There’s a lot of voices in favor of federal legislation around data privacy but there’s also a lot of voices against it … and as long as you have these strong voices speaking against it, then it’s right for the government to be moving slowly on this issue,” he said.