New Federal Data Broker Law Will Restrict Certain Foreign Data Sales Effective June 23

On April 24, 2024, President Biden signed into law H.R. 815, which includes the Protecting Americans' Data from Foreign Adversaries Act of 2024 (PADFA or the Act), a significant restriction on foreign data sales by U.S. companies that will be effective June 23, 2024. The Act generally prohibits "data brokers" from selling, licensing, or transferring for consideration an American's "personally identifiable sensitive data" to certain "foreign adversary" countries – China, North Korea, Russia, and Iran – or to any entity "controlled" by those foreign adversary countries.

Notably, PADFA applies to sensitive data sales to entities with 20% or more ownership by an individual or business domiciled or with a principal place of business in any of the foreign adversary countries. Further, the Act applies to a broad set of "sensitive data," including device geolocation data to certain information on "an individual's online activities." PADFA will be enforced by the Federal