As AI applications become more deeply integrated into healthcare and daily interactions, user privacy is facing new threats. U.S. federal legislators plan to introduce an updated version of the Health and Location Data Protection Act, aiming to curb the misuse of privacy in the AI era.
The bill was proposed by Senator Elizabeth Warren and Representative Mary Gay Scanlon. The new version not only continues the previous prohibition on data brokers trading specific sensitive information but also extends regulatory oversight for private data entered into AI systems for the first time.

Filling Privacy Gaps in the AI Era
Currently, major AI companies are accelerating their efforts in the healthcare field, actively encouraging users to upload medical records or health information to gain professional advice. However, current protection mechanisms mostly rely on individual company privacy policies, lacking unified federal legal constraints.
To prevent companies from making huge profits by selling sensitive information, the new bill explicitly prohibits any company from reselling this type of data to third-party brokers. This move cuts off the hidden channel through which users' personal health data flows into the profit chain when interacting with chatbots.
Strengthening Regulation and Substantial Enforcement Funding
According to the bill's plan, the Federal Trade Commission will be required to develop specific implementation guidelines within six months. Additionally, the bill grants regulatory agencies, state attorneys general, and affected individuals the right to directly file lawsuits, ensuring the law's deterrent effect.
Furthermore, the bill plans to allocate $1 billion over the next decade to the Federal Trade Commission specifically for combating violations in this area. Lawmakers emphasized that today, as more people disclose private health information to AI, it is essential to ensure that these sensitive details are not exploited by the highest bidder.
