100+ U.S. State Bills Jeopardized by Big Tech-Supported “Digital Trade” Scheme Revealed in New Online Policy Tracker

September 17, 2024 Press Release

Washington, D.C.—Today, Rethink Trade released a first-of-its-kind, interactive online map and database to alert lawmakers and the public of the more than 100 bills passed or being considered in 42 states and Washington, D.C., that may be preempted by “digital trade” provisions being pushed by Big Tech lobbyists for inclusion in in U.S. trade agreements. The release of this new resource comes alongside a new opinion piece in Governing, which explains the importance of the state laws and how they would be affected if tech lobbyists succeed in pushing “digital trade” rules.

“The goal of this tracker is to demonstrate how Big Tech-supported ‘digital trade’ rules clash with state lawmakers’ policy agendas,” said Daniel Rangel, Research Director at Rethink Trade. “As states respond to the growing demand for artificial intelligence (AI)  regulation, kids’ online safety, Right to Repair, and stronger data privacy protections, tech lobbyists are working behind the scenes to embed international preemption into trade deals and undermine these efforts. It’s clear that corporate-led “digital trade” provisions simply don’t square with state legislators’ goals to protect their constituents from tech corporations’ abuses. Policymakers must work to prevent state and federal tech laws—including those already on the books—from being undercut by this international preemption strategy.”

The proposed “digital trade” provisions would significantly limit governments’ ability to protect the public interest.  A rule that guarantees extraordinary secrecy protections for technological products would block government requirements for manufacturers to share repair tools that depend on algorithms, while limiting independent auditing or monitoring of  AI systems and social media platforms. Proposed terms on cross-border movement of data would ban any regulation of international data transfers, even for personal privacy or national security.

The tracker found:

  • 60 Right to Repair bills introduced or in effect since 2021 could be affected, including eight policies already signed into law in California, Colorado, Massachusetts, Minnesota, New York, and Oregon.
  • 39 bills relating to AI regulation introduced since 2021 could be affected, including six policies already signed into law in California, Colorado, Idaho, and Maryland.
  • Six kids’ online safety bills introduced since 2021 could be affected, including three policies already signed into law in California, Texas, and Utah.
  • Three data privacy laws in effect in California, Maryland, and Montana could be affected.

Rethink Trade’s previous report, “International Preemption by ‘Trade’ Agreement,” provides important analysis on potential conflicts between popular, bipartisan legislation considered by Congress and digital trade terms. The interactive state policy tracker and map expands on previous work to show that “digital trade” rules would disrupt legislative efforts beyond the federal level.

The published tracker includes policies considered since 2021, including those already in effect, which could conflict with digital trade rules included in very few trade agreements, including  the United States-Mexico-Canada Agreement, and proposed for other deals now under negotiations.

View the interactive tracker and map, “Big Tech’s ‘Digital Trade’ Agenda Threatens States’ Tech Policy Goals.

To learn more about the “digital trade” agenda, read the International Preemption by “Trade” Agreement report.

Learn more about  the Rethink Trade program at American Economic Liberties Project. 

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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.