The Data Freedom Act

Short description of the proposal or policy framework

The Data Freedom Act is a legislative framework that re-imagines data as a form of digital labor. Instead of treating data as a passive asset to be extracted, this proposal establishes a system where people are recognized and compensated for their data contributions, which are essential for powering AI and the digital economy. It proposes the creation of “data unions” or “data coalitions” that would collectively bargain with tech companies on behalf of individuals, negotiating terms, conditions, and payment for the use of their members’ data.

What problem did this project seek to address?

This framework directly confronts the immense economic inequality created by the current data economy. At present, a small number of large technology companies accumulate vast wealth and power by harvesting user-generated data for free, using it to train AI models and sell targeted advertising. This has led to a hollowing out of the middle class and a concentration of economic power. The Data Freedom Act seeks to address this imbalance by creating a new source of income for ordinary people and ensuring that the creators of data value are fairly compensated, thus preventing a future where AI and automation make human labor obsolete and worthless.

Was this developed in partnership with any organization or in response to a call for submissions, etc?

While an original RadicalxChange initiative, the Data Freedom Act’s principles have greatly influenced policy discussions and legislative efforts, such as the European Union’s “Data Union Strategy” and bipartisan proposals in the U.S. Senate, like the Hawley-Blumenthal bill, which aims to empower creators against unauthorized use of their work by AI companies.

How does this support more democratic outcomes?

This framework fundamentally restructures the power dynamics of the digital economy.

Economic Empowerment: By creating a mechanism for individuals to earn income from their data, it counters wealth concentration and helps build a more robust and inclusive middle class, which is a cornerstone of a healthy democracy.
Countervailing Power: It establishes collective bargaining units (data unions) that act as a countervailing force to the monopolistic power of Big Tech. This gives individuals a meaningful voice and negotiating power they lack on their own.
Data Dignity: It treats individuals as active participants and stakeholders in the digital economy, not just as passive sources of raw material, thereby enhancing individual dignity and autonomy.

Who are the key audiences or communities of participants?

The primary participants in this framework are:

General Public: Every individual who generates data through their online activities would be a potential data contributor.
Data Coalitions/Unions: New organizations responsible for managing, pricing, and licensing the data of their members.
Technology and AI Companies: These firms would become the buyers of data, negotiating with data coalitions to access the high-quality, ethically-sourced data needed for their models, algorithms, and services.
Policymakers and Regulators: Government bodies responsible for establishing the legal rights, responsibilities, and market structures for this new data economy.

The ideas underpinning the Data Freedom Act have had a tangible impact on the global policy conversation around data governance and AI compensation. Related developments include the EU’s ongoing work on its data strategy and the introduction of bipartisan U.S. legislation that seek to protect creative works from being exploited by AI models without consent or compensation, reflecting a growing consensus around the need to value digital contributions.

Are there any testimonials, documents, assets, links or other ways we can illustrate this project?

https://www.radicalxchange.org/updates/papers/data-freedom-act.pdf https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/14541-European-Data-Union-Strategy_en https://www.hawley.senate.gov/hawley-blumenthal-unveil-bipartisan-bill-empowering-working-americans-to-sue-big-tech-ai-companies-for-stealing-creative-works/ https://beta.radicalxchange.org/wiki/sectoral-data-bargaining/