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Reading: Lawmakers Propose Legislation to Prohibit AI Companies from Selling Your Health Data
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AIModelKit > News > Lawmakers Propose Legislation to Prohibit AI Companies from Selling Your Health Data
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Lawmakers Propose Legislation to Prohibit AI Companies from Selling Your Health Data

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Last updated: June 30, 2026 9:00 am
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Lawmakers Propose Legislation to Prohibit AI Companies from Selling Your Health Data
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New Proposal to Protect Americans’ Health and Location Data in the Age of AI

In a significant move to safeguard personal privacy, a new proposal seeks to ban the sale of Americans’ health and location information to data brokers. This initiative, spearheaded by Senator Elizabeth Warren (D-MA) and Representative Mary Gay Scanlon (D-PA), is particularly relevant as many individuals interact with AI chatbots like ChatGPT and Claude, often sharing sensitive information within these platforms.

Contents
  • The Health and Location Data Protection Act
  • AI Companies and Health Data Collection
  • The Call for Stronger Regulations
  • Advocating for Consumer Protection
  • The Future of Data Privacy in America

The Health and Location Data Protection Act

The Health and Location Data Protection Act, in its latest iteration, addresses the challenges posed by the rapid advancements in artificial intelligence. Originally introduced in June 2022, the bill has evolved to prohibit not only data brokers from collecting and selling health and location data but also extends this ban to other companies that might sell such data to brokers. Importantly, the bill now specifically encompasses data entered into AI systems, recognizing the unique vulnerabilities posed by these technologies.

AI Companies and Health Data Collection

AI labs are increasingly targeting the healthcare sector, aiming to develop products that rely on sensitive health data. For example, in January, Elon Musk called for individuals to upload their medical records to Grok, his AI chatbot platform. Meanwhile, OpenAI launched ChatGPT Health—an environment designed to be more secure and encouraging users to share their medical histories. Anthropic followed suit with Claude for Healthcare, marketed as a “HIPAA-ready” tool for both individuals and healthcare providers.

This trend raises important questions about privacy and data security. While users access these advanced tools for potential health benefits, they often relinquish control over their personal information, placing trust in the companies’ privacy policies. Sara Gerke, a law professor at the University of Illinois Urbana-Champaign, emphasized this vulnerability, stating that the protection of data largely depends on what companies promise in their terms of use.

The Call for Stronger Regulations

Despite the growing reliance on AI in healthcare, the U.S. continues to lack a robust federal framework for data privacy. Previous attempts to establish comprehensive data protection laws have fallen short, exposing consumers to the risk of data breaches and unauthorized access. The new bill, also sponsored by Senators Ron Wyden (D-OR) and Bernie Sanders (I-VT), aims to rectify this gap.

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One of the bill’s key provisions is to mandate the Federal Trade Commission (FTC) to implement regulations within 180 days of its enactment. It empowers the FTC, state attorneys general, and affected individuals to take legal action to enforce these rules. Moreover, the proposal allocates $1 billion over the next decade to boost enforcement capabilities at the FTC.

Advocating for Consumer Protection

Senator Warren has been outspoken about the need for stronger consumer protections in light of the increasing monetization of personal data. “It’s more important than ever that we crack down on data brokers that are raking in giant profits from selling Americans’ most sensitive information,” she stated. Her focus on preventing the exploitation of private health data underscores the urgency of this legislative effort, especially as individuals increasingly share such information with AI tools.

The Future of Data Privacy in America

As more Americans engage with AI technologies, the demand for comprehensive data protection becomes critical. This proposal reflects a timely response to the rapid evolution of technology and the accompanying risks to personal privacy. By expanding legal protections and holding companies accountable, lawmakers are positioning themselves to better safeguard the health and location data of Americans in a digital-first world.

In conclusion, this emerging legislation exemplifies a crucial step toward ensuring that individuals can utilize advanced technologies without fearing for the security of their most private information. As discussions continue, public awareness and support for data privacy will play a pivotal role in shaping regulatory outcomes.

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