Businesses across the United States are facing a new challenge as they navigate the complexities of state privacy laws. With three new laws coming into effect in Texas, Oregon, and Florida, companies are under pressure to ensure compliance with a total of eight state privacy laws currently in force. The ever-changing landscape of consumer data privacy regulation in the U.S. has left many businesses grappling with how to interpret and adhere to these laws.
One of the key differences among the Texas, Oregon, and Florida laws lies in their applicability thresholds. While most state privacy laws establish minimum thresholds for the number of consumers or revenue generated from selling personal data, each state law approaches this requirement differently. For instance, the Oregon Consumer Privacy Act sets volume thresholds for data processing, while the Florida Digital Bill of Rights focuses on revenue and specific business activities. On the other hand, the Texas Data Privacy and Security Act does not rely on such thresholds but instead considers the size of a business relative to its industry.
Moreover, entity-type exemptions play a significant role in determining which businesses are subject to these privacy laws. Some laws exempt certain types of entities, such as financial institutions or healthcare organizations, while others offer exemptions for specific categories of data. Understanding these exemptions is crucial for businesses seeking to comply with the state laws. For example, the Texas law excludes financial institutions from its scope, whereas the Oregon law provides exemptions for specific entities like public corporations and nonprofits.
Privacy policy disclosures are another essential aspect of compliance with state privacy laws. All businesses are required to publish privacy policies detailing how personal information is collected and used, as well as whether data is sold to third parties or used for targeted advertising. Differences in disclosure requirements can be seen across the Texas, Oregon, and Florida laws, with specific language mandated for businesses engaging in the sale of sensitive data or biometric data.
Data subject rights granted by state laws also vary, with provisions for rights such as access to personal information, correction of data, deletion of data, and the right to opt-out of data sharing and targeted advertising. Oregon introduces an additional right for consumers to obtain a list of specific third parties to which their data has been disclosed. Florida includes the right to opt-out of the collection of sensitive data and data collected through voice and facial recognition features.
The definition of “sensitive data” is broad and includes various categories of personal information under state privacy laws. Understanding what constitutes sensitive data is crucial for businesses to ensure compliance with these laws. Oregon, for example, includes additional categories such as a consumer’s national origin, transgender status, and victim of crime status in its definition of sensitive data.
Looking ahead, businesses must stay informed as more states introduce consumer data privacy laws in the coming years. With the Montana Consumer Data Privacy Act set to take effect soon and other states like Delaware, Indiana, and Maryland following suit, companies need to adapt their privacy compliance programs to meet the requirements of these evolving laws. While there have been discussions at the federal level regarding comprehensive data privacy legislation, the likelihood of a federal law passing this year remains uncertain.
In conclusion, businesses operating in the U.S. must navigate a complex web of state privacy laws to protect consumer data and ensure compliance. By understanding the nuances of the Texas, Oregon, and Florida laws, as well as upcoming regulations in other states, companies can proactively address privacy concerns and safeguard sensitive information. As the regulatory landscape continues to evolve, staying ahead of compliance requirements will be essential for businesses seeking to build trust with consumers and mitigate the risks associated with data privacy breaches.