When Profit Outweighs Privacy: The Need for Federal Data Rights
- WULR Team
- Mar 17
- 3 min read
An examination on why data rights are needed
Published March 17th, 2026
Written by Amber Semler
Every time consumers scroll through social media or access the internet, they generate economic value. Data has become one of the most valuable resources in today’s economy. Yet the users producing this data have almost no control over how it is collected, stored or used. The United States has no federal privacy laws governing data protection. With no regulation, technology companies collect and sell personal data to target content, influence behavior and shape consumer decisions. Consumers are largely unaware of and have not consented to these practices. This undermines individual autonomy and raises fundamental questions about who should control our information. The United States needs stronger, rights-based privacy protections that limit how companies collect and use personal data.
Companies pursue personal data because it fuels some of the most profitable business models in the digital age. Modern digital markets rely heavily on it, giving companies powerful incentives to collect and monetize user information. The World Economic Forum views data as a new asset class, meaning it is a valuable resource central to modern business. It is frequently described as the “new oil” of the 21st century. Data is a critical source of efficiency and innovation, as it carries tremendous growth opportunities. Platforms we engage in every day, like Meta, Google and TikTok, use data to sell highly profitable targeted advertising. According to Grand View Research, which aligns with other sources, the global data broker market was estimated at about $278 billion in 2024 and is projected to keep growing. GVR estimated the digital advertising market at $488 billion in 2024. Corporations treat data collection as a commodity, with little concern for privacy. This economic value explains why companies collect data at large scale and why legal protections are necessary.
United States privacy law has not kept up with the data economy, leaving consumers with almost no rights over their personal information. There are no comprehensive federal privacy laws granting access, deletion, portability or other rights for consumers. Certain sensitive sectors have protections, such as HIPAA and FERPA. The only general federal oversight comes from Federal Trade Commission Act §5, a consumer protection statute. This regulates only unfair or deceptive acts and practices. It does not actually limit data collection, unless deception is involved in the situation. It also acts on a case-by-case basis, providing enforcement only after harm has been done. In contrast, the EU has the GDPR, which gives consumers rights to access, deletion, portability, consent and correction of their data. It also limits data collection to what is necessary and lawful. Strict fines are imposed for noncompliance. This demonstrates meaningful privacy protections, highlighting the gap in U.S. federal law. Certain privacy laws exist at the state level, including the California Consumer Privacy Act and California Privacy Rights Act. These laws impose regulations similar to the GDPR, but are weaker. Currently only 20 states have enacted data privacy laws. The result is an inconsistent regulatory system, which is why federal law should step in. The legal void enables companies to exploit data economics, ultimately harming consumers.
Companies justify mass data collection through terms and conditions that are intentionally long and complicated. To use the platform, a user must agree, which is illusory consent. Platforms explicitly design “feeds,” using predictable human biases, to maximize engagement and prompt more data collection,a form of manipulation. Even the FTC has warned that digital platforms often use “dark patterns” - design features that manipulate or pressure consumers - to obtain more personal data than users intend to share. A single search can lead to targeted ads that follow a user for days across platforms, creating a sense of surveillance they never agreed to. Algorithms hyper-personalize content toward each consumer to influence behavior and opinions. They guide you to interact with and consume certain ideas while downranking others. This can quietly shape what people buy, believe and even vote for. The manipulation behind targeted content threatens individual autonomy and the principle of democracy. These practices don’t happen despite weak regulation – they happen because of it. Companies are motivated by profit incentives, leaving consumer welfare a lower priority.
To prevent the ethically questionable use of data and analytics, the U.S. needs to create and enforce rights-based regulations over data protection. The law must put consumer rights above corporate profit. Protecting autonomy is essential to preserving a democratic society.
