The Democratic-controlled Vermont Legislature has passed one of the nation’s strongest data privacy measures aimed at cracking down on the use of online personal data by companies that violate certain privacy rules. It will be possible to file civil lawsuits against companies.
But Republican Gov. Phil Scott has concerns about how parts of the bill could affect small businesses. He has not yet seen the final bill, which was passed early Saturday morning before Congress adjourned. His spokesman, Jason Maulucci, said Tuesday that he would make a decision once he had a chance to consider it.
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The bill prohibits the sale of sensitive data such as Social Security and driver’s license numbers, financial information and health information. It also sets meaningful limits on the amount of personal data that companies can collect and use, according to the Washington, D.C.-based nonprofit Electronic Privacy Information Center.
More than a dozen states have enacted comprehensive data privacy laws. EPIC Deputy Director Caitriona Fitzgerald said Vermont is “one of the strongest, if not the strongest” state in the country.
January 2, 2024, Vermont State House in Montpelier, Vermont. On Saturday, the Democratic-controlled Vermont Legislature passed one of the nation’s strongest data privacy measures aimed at cracking down on how companies use personal data online. Consumers will be able to bring civil lawsuits against companies that violate certain privacy rules. (AP Photo/Lisa Radtke)
The bill’s sponsor, Democratic state Rep. Monique Priestley, told colleagues Friday night that without a thoughtful and comprehensive response, the gap could be exploited and undermine the protections lawmakers were seeking. He said it was sexual.
“The urgency of this moment cannot be overstated, as everything we do and everything we are is monetized in a surveillance economy,” she said, according to EPIC.
A big step in the bill is to allow consumers to sue, which Fitzgerald said is the most effective way to ensure that businesses comply with privacy laws. Fitzgerald said state attorneys general don’t have the resources to enforce these privacy regulations.
If there is a violation and you want to sue, the company has 60 days to resolve the issue, Priestley said Tuesday. A spokesperson for the governor said the governor is concerned about private rights of action and what it means for Vermont’s small businesses and “mom friend” stores.
The Vermont Chamber of Commerce said Tuesday it shares the governor’s concerns. “Ultimately, it will be harder and more costly for Vermont businesses to compete,” Megan Sullivan, vice president for government affairs, said in an email Tuesday.
Priestley said the Legislature cited violations by data brokers, which are companies that make most of their revenue from selling data, and large data holders, which are companies that process the data of more than 100,000 Vermonters annually. It has been decided to limit the number of
“The biggest feedback we’ve gotten is that small businesses are basically caught by this before they’re ready. We don’t have a data privacy policy in place, so they don’t have any good We need to learn data standards,” she said. “But the big companies already know.”
The bill also includes some previous legislation aimed at protecting children.
“What’s really left is product liability and safety liability legislation around minimizing things like addictive features,” Priestley said.
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Vermont’s passage of the bill comes after Maryland’s governor joins two bills aimed at strengthening protections for online personal data from Big Tech, including one that seeks to place limits on information collected about children. This took place the week after I signed it. Another Maryland law provides consumer protections regarding online personal data controlled or processed by certain entities doing business in Maryland or providing services or products intended for residents of the state. It creates rights and disclosure obligations.
Many of Vermont’s bills would go into effect in 2025 if signed by the governor. Mr Priestley said the ability for consumers to bring legal action would not come into force until 2026 and would be phased out in 2028 following a study to examine its effectiveness and risks. .
