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U.S. Proposes $1B Over 10 Years to Amend Privacy Act, Ban AI Firms from Selling Health Data
U.S. Senator Elizabeth Warren and Representative Mary Gay Scanlon have formally introduced the revised Health and Location Data Protection Act, which now explicitly includes generative AI systems under its scope. The bill aims to prohibit AI companies and data brokers from selling sensitive medical and personal health information that users enter into chatbots.
This legislative initiative directly targets privacy risks stemming from the growing competition among tech giants in medical applications. Earlier this year, Elon Musk publicly encouraged users to upload detailed MRI scans and other medical records to xAI's Grok to test its diagnostic abilities. Shortly after, OpenAI launched a secure environment designed for handling medical records, and Anthropic followed with a HIPAA-compliant version of Claude. Without a unified federal digital privacy framework, user data protection continues to rely largely on each company's own privacy policies.
To close this gap, the new bill directs the Federal Trade Commission to issue binding regulations within 180 days, allocates one billion dollars in enforcement funding over the next decade, and grants state attorneys general as well as individual citizens the right to sue violators directly. This move signals a regulatory shift toward imposing strict boundaries on the data used to train large AI models. As tech companies increasingly treat biometric data as fuel for their models, the legislation seeks to reclaim control over personal privacy—a step with lasting implications for how the generative AI industry manages commercial data and complies with emerging rules.
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U.S. Senator Elizabeth Warren and Representative Mary Gay Scanlon have formally introduced the revised Health and Location Data Protection Act, which now explicitly includes generative AI systems under its scope. The bill aims to prohibit AI companies and data brokers from selling sensitive medical and personal health information that users enter into chatbots.
This legislative initiative directly targets privacy risks stemming from the growing competition among tech giants in medical applications. Earlier this year, Elon Musk publicly encouraged users to upload detailed MRI scans and other medical records to xAI's Grok to test its diagnostic abilities. Shortly after, OpenAI launched a secure environment designed for handling medical records, and Anthropic followed with a HIPAA-compliant version of Claude. Without a unified federal digital privacy framework, user data protection continues to rely largely on each company's own privacy policies.
To close this gap, the new bill directs the Federal Trade Commission to issue binding regulations within 180 days, allocates one billion dollars in enforcement funding over the next decade, and grants state attorneys general as well as individual citizens the right to sue violators directly. This move signals a regulatory shift toward imposing strict boundaries on the data used to train large AI models. As tech companies increasingly treat biometric data as fuel for their models, the legislation seeks to reclaim control over personal privacy—a step with lasting implications for how the generative AI industry manages commercial data and complies with emerging rules.
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