On April 24, President Biden signed a sweeping foreign aid bill into law, which included a critical provision covering privacy and data transfers known as the Protecting Americans’ Data from Foreign Adversaries Act (“PADFA”). This Act is separate from the TikTok divestment portion of the legislation, which has received far greater attention in the press. PADFA generally prohibits data brokers from transferring personally identifiable sensitive data to certain named foreign adversary countries, including the People’s Republic of China, and any entity controlled by certain foreign adversaries. The law includes broad definitions of the terms “data brokers,” “personally identifiable sensitive data,” and “controlled by a foreign adversary,” which means the law applies to a wide range of companies. It is worthwhile for companies, even those who at first glance think they may not be covered, to review the law and consider adjusting their practices accordingly.
Click here to view the Ropes & Gray client alert for a more in-depth analysis of PADFA.