The DATA Privacy Act creates the first national rules for how companies handle your personal information online. If you're wondering what this means for you, here's the basic idea: companies that collect data on more than 50,000 people have to be transparent about what they're doing with your information and give you more control over it.

Under this law, companies must post clear, easy-to-understand privacy notices explaining what data they collect, why they collect it, and who they share it with. More importantly, you get new rights: you can ask companies what information they have about you, request they delete it, and in many cases opt out of data collection entirely. Companies also can't use your data to discriminate against you based on race, sex, gender, sexual orientation, religion, age, disability, or nationality—and they can't use sneaky or deceptive practices to collect your information.

The law has some important protections for sensitive data like health information, genetic data, and your precise location. Companies need your explicit permission before collecting this type of information for purposes outside your normal relationship with them. Large companies (those making over $50 million annually) must hire a privacy officer to oversee compliance and conduct regular audits. The Federal Trade Commission enforces these rules and can impose significant penalties—up to $40,000 per person affected by a violation. States can also sue on behalf of their residents to protect them. The law gives the government a year to write detailed regulations explaining how companies must follow these rules.