Only federal entities can regulate “interstate commerce”. The Internet is defined as interstate; the CP get’s struck down. Or sites would defer to federal law.

Technology has transformed virtually every aspect of American life since the country’s founding over two centuries ago. The authors of the Constitution never could have imagined many of the conveniences of the 21st century. Instead of walking or riding to the local store to buy goods, Americans can shop from the comfort of their own home and have those items delivered to their doorstep from anywhere in the world. Instead of printing pamphlets and distributing them by hand or writing articles for the local papers, Americans can share their thoughts and opinions instantaneously across borders to anyone with an Internet connection. And instead of meeting and demonstrating in town squares, Americans can engage in political activism and organization on social media.

As stark as these differences seem, the principles laid out in the Constitution have endured in today’s connected world. The Founders recognized that unimpeded interstate commerce was crucial to the success of their fledgling nation, which led them to include the Commerce Clause in the Constitution, giving Congress the power to regulate commerce with foreign nations and among the states.1 By giving every business, from multinational corporations to local mom-and-pop shops, the ability to sell its products and services online and across borders, the Internet has made the Commerce Clause more relevant than ever.

Despite the Internet’s inherent interstate nature, states have passed or considered a host of legislation regulating various areas of digital policy, creating a “tower of Babylon” of conflicting regulations that raises the costs of doing business and confuses consumers. Just as state and local governments cannot restrict interstate commerce in the physical world, such as prohibiting produce from other states or setting prices for interstate railroad freight, neither should they restrict interstate commerce on the Internet.

This report explores 10 of those areas—data privacy, data breach notification, children’s online safety, content moderation, digital taxes, e-commerce, right to repair, right of publicity, net neutrality, and digital identification—where state laws could create or have created a patchwork of regulation that confuses consumers and complicates compliance. In some areas, no federal regulation exists, leaving states to pick up the slack. In other areas, some federal regulation exists, but there are gaps where states have created rules of their own. In all areas, federal preemption to create a single national standard would benefit businesses, consumers, and the economy.