Right to Sue: Under the law, Vermont residents can directly sue companies that collect or share their sensitive data without their consent. This provision is a departure from the usual regulatory approach, which relies on government agencies to enforce privacy rules.
Sensitive Data Definition: The law defines sensitive data broadly, encompassing not only personally identifiable information (PII) but also health-related data, biometric information, and geolocation data.
Transparency Requirements: Companies must be transparent about their data practices. They are required to disclose what data they collect, how it is used, and whether it is shared with third parties.
Opt-In Consent: Companies must obtain explicit consent from users before collecting or sharing their sensitive data. This opt-in approach puts control back in the hands of consumers.
The Vermont scenario is a rare but dramatic exception to a growing national trend: with little action from Congress, the responsibility of regulating technology has shifted to the states. This sets state lawmakers, who frequently have limited staff and part-time occupations, against big national lobbies with corporate and political influence.
It's unclear whether Vermont's new strategy will work: Republican Gov. Phil Scott has yet to sign the bill, and lawmakers and industry are still arguing about it.
However, national consumer advocacy groups are already turning to Vermont as a possible model for lawmakers hoping to impose severe state tech restrictions throughout the country – a struggle that states have mostly lost up to this point.
Vermont’s data privacy law has galvanized state lawmakers across the country. Here’s why:
Grassroots Playbook: Lawmakers collaborated with counterparts from other states to create a “grassroots playbook.” This playbook outlines strategies for passing similar legislation elsewhere. By sharing insights and tactics, they hope to create a united front against tech industry lobbying.
Pushback Against Industry Pressure: Tech lobbyists have historically opposed stringent privacy regulations. Vermont’s law represents a bold move, and lawmakers anticipate pushback from industry giants. However, the alliance aims to stand firm and protect consumers’ rights.
Potential Model for Other States: If Vermont successfully implements its data privacy law, other states may follow suit. The alliance hopes to create a domino effect, encouraging more states to prioritize consumer privacy.
The fight for privacy legislation has been fought in states since 2018 when California became the first to implement a comprehensive data privacy law.
In March 2024, Vermont's House of Representatives began debating a state privacy law that would allow residents the right to sue firms for privacy infractions and limit the amount of data that businesses may collect on their customers. Local businesses and national groups warned that the plan would destroy the industry, but the House passed it overwhelmingly.
The bill was then sent to the state Senate, where it was met with further support from local businesses.
The CFO of Vermont outdoor outfitter Orvis wrote to state legislators saying limiting data collecting would "put Vermont businesses at a significant if not crippling disadvantage."
A spokesman for Orvis stated that the corporation did not collaborate with tech sector groups opposing Vermont's privacy measure.
On April 12, the Vermont Chamber of Commerce informed its members that it had met with state senators and that they had "improved the bill to ensure strong consumer protections that do not put an undue burden on Vermont businesses."
Priestley expressed concern about the pressure in an interview. It reminded her of L.L. Bean's significant resistance to Maine's privacy legislation. She discovered similar industry attacks against state privacy rules in Maryland, Montana, Oklahoma, and Kentucky. She invited politicians from all five states to discuss their experiences to demonstrate this trend to her colleagues.
Predictably, tech companies and industry associations have expressed concerns. They argue that a patchwork of state laws could hinder innovation and create compliance challenges. Some argue for a federal approach to data privacy, emphasizing consistency across all states.
China has started a security investigation into the export of geolocation data, a development that highlights the nation's rising concerns about data security. The probe, which was made public on December 11, 2023, represents a major advancement in China's attempts to protect private information, especially geographic information that can have national security ramifications.
The decision to scrutinize the outbound flow of geographic data comes amid a global landscape increasingly shaped by digital technologies. China, like many other nations, recognizes the strategic importance of such data in areas ranging from urban planning and transportation to military operations. The probe aims to ensure that critical geographic information does not fall into the wrong hands, posing potential threats to the nation's security.
The official statements from Chinese authorities emphasize the need for enhanced cybersecurity measures, especially concerning data breaches that could affect transportation and military operations. The concern is not limited to unauthorized access but extends to the potential misuse of geographic information, which could compromise critical infrastructure and national defense capabilities.
"Geographic information is a cornerstone of national security, and any breaches in its handling can have far-reaching consequences," a spokeswoman for China's Ministry of Public Security said. In order to stop unwanted access or abuse, our objective is to locate and fix any possible weaknesses in the system."
International watchers have taken notice of the development, which has sparked concerns about the wider ramifications for companies and organizations that deal with geolocation data. Other countries might review their own cybersecurity regulations as a result of China's aggressive steps to bolster its data protection safeguards.
This development aligns with a global trend where countries are increasingly recognizing the need to regulate and protect the flow of sensitive data, particularly in the digital age. As data becomes a valuable asset with strategic implications, governments are compelled to strike a balance between fostering innovation and safeguarding national interests.
China's security probe into the export of geographic data signals a heightened awareness of the potential risks associated with data breaches. As the world becomes more interconnected, nations are grappling with the challenge of securing critical information. The outcome of China's investigation will likely shape future policies and practices in data security, setting a precedent for other countries to follow suit in safeguarding their digital assets.
As India's Data Protection and Privacy Act (DPDP) transitions from proposal to legal mandate, the business community is grappling with the intricacies of compliance and its far-reaching implications. While the government maintains that companies have had a reasonable timeframe to align with the new regulations, industry insiders are voicing their apprehensions and advocating for extensions in implementation.
A new LiveMint report claims that the government claims businesses have been given a fair amount of time to adjust to the DPDP regulations. The actual situation, though, seems more nuanced. Industry insiders,emphasize the difficulties firms encounter in comprehending and complying with the complex mandate of the DPDP Act.
The Big Tech Alliance, as reported in Inc42, has proposed a 12 to 18-month extension for compliance, underscoring the intricacies involved in integrating DPDP guidelines into existing operations. The alliance contends that the complexity of data handling and the need for sophisticated infrastructure demand a more extended transition period.
An EY study, reveals that a majority of organizations express deep concerns about the impact of the data law. This highlights the need for clarity in the interpretation and application of DPDP regulations.
In another development, the IT Minister announced that draft rules under the privacy law are nearly ready. This impending release signifies a pivotal moment in the DPDP journey, as it will provide a clearer roadmap for businesses to follow.
As the compliance deadline looms, it is evident that there is a pressing need for collaborative efforts between the government and the industry to ensure a smooth transition. This involves not only extending timelines but also providing comprehensive guidance and support to businesses navigating the intricacies of the DPDP Act.
Despite the government's claim that businesses have enough time to get ready for DPDP compliance, industry opinion suggests otherwise. The complexities of data privacy laws and the worries raised by significant groups highlight the difficulties that companies face. It is imperative that the government and industry work together to resolve these issues and enable a smooth transition to the DPDP compliance period.