Now more than ever, businesses operate in a complex web of information exchange, collecting, processing, and storing vast amounts of data. This data, while a valuable asset, carries with it a heavy responsibility to protect the privacy and integrity of personal information. Recognizing the critical nature of data privacy, various states in the U.S. have enacted privacy laws to safeguard individuals’ data.
These U.S. data privacy laws aim to protect personal information and guide businesses in their data-handling practices, ensuring a balance between innovation and privacy. As these regulations continue to evolve, staying informed and compliant becomes paramount for your business to maintain trust and avoid legal pitfalls. This article will delve into 13 pivotal U.S. data privacy laws by state, exploring how they impact your business.
1. California Consumer Privacy Act (CCPA)
The CCPA, a trailblazer in state-level privacy legislation, grants California residents enhanced privacy rights and consumer protection. Businesses that collect personal information from California residents and meet certain criteria must provide transparency about data collection practices, the purpose of data collection, and with whom the data is shared.
Your business must provide access to consumer data upon request and offer a method for consumers to opt out of data sales. Non-compliance can result in significant penalties and fines of up to $7500 per violation.
2. Colorado Privacy Act (CPA)
The Colorado Privacy Act (CPA) was enacted in 2021 to empower Colorado consumers to safeguard their privacy and ensure that companies prioritize data privacy in their innovation practices. As a business operating within Colorado or handling Coloradans’ data, you must ensure transparency in data collection, usage, and sharing.
The law requires you to enable consumers to access, correct, or delete their personal information and to opt out of data sales or targeted advertising. Compliance hinges on clear communication of data practices and securing affirmative consent for data processing.
3. Connecticut Act Concerning Personal Data Privacy and Online Monitoring (CTDPA)
The CTDPA introduces comprehensive safeguards for consumers, enhancing their control over personal data collected by companies during online interactions. If your business processes the personal data of Connecticut residents, you are tasked with ensuring the data is collected and used transparently.
You should give consumers rights to access, amend, or delete their data and to opt out of its sale or use for targeted advertising. Compliance demands adopting adequate data practices, responding promptly to consumer requests, and maintaining robust security measures.
4. Delaware Personal Data Privacy Act (DPDPA)
Set to take effect on January 1, 2025, the DPDPA mandates that your business, if it processes the data of Delaware consumers, must uphold transparent data practices. Specifically, if you control or process the personal data of over 35,000 Delaware consumers or if a substantial portion of your revenue stems from the sale of personal data, the DPDPA applies to you.
You must ensure consumers’ rights to access, correct, and delete their data, and opt out of data processing for profiling and targeted advertising. Importantly, the DPDPA prohibits discrimination against consumers who exercise their privacy rights.
5. Florida Digital Bill of Rights (FDBR)
The Florida Digital Bill of Rights (FDBR) represents a significant legislative move to regulate the handling of personal data by “Big Tech” companies within Florida. If your business falls into this category, with annual global revenues exceeding $1 billion, you should pay attention to this privacy law.
It ensures consumers’ rights to access, control, and delete their personal data, including biometric and geolocation information. The FDBR also addresses the ethical use of data by prohibiting discriminatory practices and allowing consumers to opt out of data sales or profiling for targeted advertising.
6. Indiana Consumer Data Protection Act (ICDPA)
The Indiana Consumer Data Protection Act (ICDPA) is set to take effect on January 1, 2026, to give Indiana residents control of their personal data. If your business processes the personal data of over 100,000 Indiana residents or derives significant revenue from selling the data of at least 25,000 residents, you align with the ICDPA.
This law mandates clear communication about data collection and use, ensuring residents can access, correct, or delete their data. They also have the right to opt out of data selling or targeted profiling. Failure to comply invites legal action, with potential civil penalties of up to $7,500 per violation.
7. Iowa Consumer Data Protection Act (IDPA)
The Iowa Consumer Data Protection Act (ICDPA) is set to redefine data privacy in Iowa from January 1, 2025. It grants Iowans rights to access, delete, and opt out of the sale of their personal data, excluding profiling.
While the IDPA does not allow for private legal action by consumers, non-compliance could lead to significant penalties from the state’s attorney general, up to $7,500 per violation. Your obligation includes responding to consumer data requests promptly and providing a way to appeal denied requests. These requirements underscore the importance of responsible data management practices.
8. Montana Consumer Data Privacy Act (MCDPA)
The Montana Consumer Data Privacy Act (MCDPA), effective October 1, 2024, defines businesses’ responsibilities when it comes to processing consumer data. If your business controls or processes the personal data of over 50,000 Montana consumers or derives significant revenue from at least 25,000 consumers’ data, this law concerns you.
Like other consumer privacy laws, it empowers consumers to access, delete, and opt out of the sale of their data. Your business must implement data protection assessments for processing activities and establish a universal opt-out mechanism by January 1, 2025.
9. Oregon Consumer Data Privacy Act (OCDPA)
The Oregon Consumer Data Privacy Act (OCDPA), effective July 1, 2024, introduces stringent data privacy requirements for businesses operating in Oregon. The law mandates you to inform consumers about their data being processed, provide access to their information, and allow them to correct, delete, or opt-out of data selling or targeting ads.
Non-profits will also fall under this regulation starting July 1, 2025. Ensure your privacy policies are transparent and accessible, and be prepared to respond to consumer requests within 45 days.
10. Tennessee Information Protection Act (TIPA)
The Tennessee Information Protection Act (TIPA), effective July 1, 2025, aligns closely with business interests, setting a framework for data privacy that balances consumer rights with operational realities. If this law applies to your business, you must disclose data processing activities, provide data access, allow corrections, and delete personal data upon request.
Notably, TIPA offers an “affirmative defense” to businesses adhering to the NIST privacy framework, serving as a safeguard against potential violations. However, you should ensure your privacy practices are robust and transparent to meet TIPA’s mandates and take advantage of the safe harbor provision.
11. Texas Data Privacy and Security Act (TDSPA)
Under the TDPSA law, if your business processes or sells Texans’ personal data, you must ensure transparency and control over such data. Consumers gain rights to access, delete, and port their data and opt out of its sale or use in profiling.
To comply, you must secure explicit consent for data processing, provide clear mechanisms for consumers to exercise their rights, and implement opt-out preference indicators by January 1, 2025. To avoid penalties, you should ensure your compliance strategies include the necessary disclosures and contractual relationships.
12. Utah Consumer Privacy Act (UCPA)
The Utah Consumer Privacy Act (UCPA) introduces a tailored approach to data privacy for businesses engaging with Utah residents. If your business operates within Utah, targets its residents, and meets specific criteria—including $25 million or more in annual revenue—you’re subject to UCPA. This law empowers consumers to access and delete their data and opt out of its sale or targeted advertising.
While it lacks provisions for private action against violations, compliance is non-negotiable. Ensure your privacy notices are transparent and responsive to consumer rights requests within 45 days, with the potential for a 45-day extension.
13. Virginia Consumer Data Privacy Act (VCDPA)
If your business operates within Virginia, targets its residents, or processes significant volumes of the state’s consumer data, the VCDPA is worth your attention. This law grants consumers rights to access, correct, and delete their data. They can also opt out of data sales or targeted advertising.
Compliance necessitates clear consent from consumers, swift responses to their rights requests within 45 days, and a robust data protection assessment for certain processing activities. Non-compliance triggers a 30-day cure period, after which the Attorney General can impose penalties of up to $7,500 per violation.
Stay on Top of U.S. Data Privacy Laws
Navigating the landscape of U.S. data privacy laws requires a proactive approach to compliance and consumer rights protection. Each state law presents unique obligations for businesses, emphasizing transparency, consumer control over personal data, and stringent data handling practices. Adhering to these regulations safeguards you against legal penalties and builds consumer trust and competitive advantage.
Solutions like TeraDact’s suite of data protection and security products offer a comprehensive approach to safeguarding your business’s and consumers’ data across various platforms, from ground to cloud and core to edge. With interactive intelligence tailored to your risk profile and a centralized dashboard for managing data protection across multiple locations, TeraDact empowers you to stay ahead of potential vulnerabilities. Start with a free trial today and transform your organization’s data privacy and security approach.
