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Comprehensive privacy legislation based upon a "flexible, risk-based approach" would be the best way to approach data security and competition concerns in the cloud computing industry, according to Privacy for America.

The coalition urged on June 21, 2023 that Privacy for America's framework -- "flexible data security standards that are tailored to the nature and scope of the covered entity as well as the sensitivity and potential risks of harm to the consumer of the personal information processed by the covered entity" -- works best for protecting consumer data and promoting competition in the cloud computing industry.

This came in response to a request for comment from the Federal Trade Commission (FTC) on the business practices of cloud computing providers.

Privacy for America's comments "explain why this flexible, risk-based approach works well in the cloud computing industry by encouraging competition and allowing entities of all sizes to access data security infrastructure that fits their own needs in addition to their customers’ needs. We also explain that a one-size-fits-all approach to cloud security standards would be counterproductive to bolstering data protection, because it would diminish access to effective data security for the business community and result in disadvantageous economic and competitive results."

America's "history of flexible data security standards," Privacy for America concluded, "has bolstered the economy, and any new requirements that may apply to cloud services providers should build on that example through national, preemptive privacy and data security legislation passed by Congress." Thus, the FTC "should support the creation of a national data security standard through legislation that works across all actors in the marketplace, a result that can be best achieved through the legislative process."