DATA Act

Deterring America’s Technological Adversaries Act or DATA Act

This bill requires federal actions to protect the sensitive personal data of U.S. persons, with a particular focus on prohibiting the transfer of such data to foreign persons influenced by China.

The International Emergency Economic Powers Act (IEEPA) authorizes the President to regulate various commercial transactions and to block foreign-owned property and assets subject to U.S. jurisdiction. An exemption to IEEPA (i.e., the Berman Amendment) blocks the President from regulating information and informational materials. This bill specifies that sensitive personal data is not information or informational materials exempt from regulation under IEEPA.

The bill requires the Department of the Treasury to issue a directive prohibiting U.S. persons from engaging in any transaction with any person who knowingly provides or may transfer sensitive personal data subject to U.S. jurisdiction to any foreign person subject to Chinese influence.

The bill also establishes new sanctions on certain transactions related to connected software applications. For example, the President must impose a sanction on any foreign person that knowingly operates, directs, or deals in a connected software application that is subject to the jurisdiction of China and is reasonably believed to have been or may be used to facilitate or contribute to China's military, intelligence, censorship, surveillance, cyber, or information campaigns.

The President must determine whether reasonable grounds exist for concluding that specified entities (e.g., TikTok) meet the criteria under the bill for purposes of applying a directive by Treasury or for imposing sanctions.