Senators introduce bill directing FTC to establish standards for protecting consumers’ neural data

Lawmakers on Wednesday introduced legislation to protect consumers’ neural data from tech companies and data brokers by directing the Federal Trade Commission (FTC) to establish governance standards.

Sens. Chuck Schumer (D-NY), Maria Cantwell (D-WA) and Ed Markey (D-MA) intend for the bill to guard against commercial entities collecting, selling or mixing together individuals’ brain signals in ways that can shape their decisions, emotions or what they buy, according to a press release.

The Management of Individuals’ Neural Data Act of 2025 would order the FTC to investigate how data gleaned from individuals’ brains, also known as neural data, can best be safeguarded to guarantee privacy and prevent exploitation.

Neuralink and other companies are working with consumers’ neural data “without guardrails” and wearable companies are collecting sensitive neural data with “virtually no oversight and no limits on how it can be used,” according to the press release. 

Companies are already gathering and using the data to predict and manipulate human behavior, according to the press release.

“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,” Schumer said in a prepared statement. “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.”

The bill directs the FTC to collaborate with officials at other federal agencies, industry leaders, consumer and patient advocates and clinical researchers to design a neural data governance structure and fill policy gaps. The agency also would be required to investigate and publicize how neural data abuses can harm people, including through insurance discrimination and targeted ads.

“Businesses in this space would benefit from deciding on self-regulatory standards to follow now, even in the absence of laws,” said Kristen Mathews, a lawyer with Cooley who specializes in neural data privacy. “By doing this, they may or may not stave off legislation, but they would likely shape the ultimate legislation.”