FTC standards for neural data protection sought by Senate bill

The Federal Trade Commission would be required to work with other agencies, industry leaders, researchers, and consumer advocates to identify policy gaps and create a governance framework that would protect neural data from potential exploitation of data brokers and tech firms under new legislation introduced by Sens. Ed Markey, D-Mass., Chuck Schumer, D-N.Y., and Maria Cantwell, D-Wash., reports The Record, a news site by cybersecurity firm Recorded Future.

Under the Management of Individuals' Neural Data Act of 2025, the FTC would be directed to set standards for governing neural data and publish findings on the potential harms from neural data exploitation, including targeted advertising and insurance discrimination.

The bill seeks to stop companies from collecting, selling, or combining brain signal data in ways that influence people's choices, emotions, or purchases.

"Data about a person's brain activity could be misused to push manipulative ads or high-risk financial schemes designed to take advantage of consumers at their most vulnerable moments. We must ensure that Americans know how this data is being collected and used, that their consent matters, and that strong guardrails are in place so innovation serves people—not exploits them," Schumer said in a statement.