As technology continues to advance and data-driven business models become more prevalent, concerns about the protection of personal information grow. In the absence of a comprehensive federal privacy law in the United States, individual states have been stepping in with their own regulations, creating a “patchwork” of privacy requirements across the country. This patchwork can pose compliance challenges for businesses and underscores the increasing importance of robust data governance.
In 2025, several new state privacy laws will take effect, each granting residents enhanced control over their personal data and imposing stricter obligations on organizations. Below is a breakdown of the key legislation and an overview of what these changes mean for both consumers and businesses.
Common Requirements Across State Privacy Laws
Although each state law comes with its own nuances, many share common themes and requirements that businesses should be aware of:
Expanded Consumer Rights
Right to Access: Consumers can request copies of their personal information held by businesses.
Right to Correct: Individuals can ask to correct inaccuracies in their data.
Right to Delete: Certain laws require businesses to delete personal data upon a valid request.
Right to Opt Out (or Limit Use): Some states provide the right to opt out of data sales, targeted advertising, or the use of sensitive personal data.
Transparency Obligations
Privacy Notices: States generally require clear, conspicuous, and accessible privacy policies that explain data collection, sharing, and processing practices.
Consent and Notice for Sensitive Data: Special disclosure or consent obligations often apply when handling sensitive personal information (e.g., health, biometric, or financial data).
Data Security and Safeguards
Reasonable Security Measures: Businesses must implement technical, administrative, and organizational measures to protect personal data against unauthorized access, breaches, and other risks.
Incident Response Plans: Many laws implicitly or explicitly encourage or require preparedness to detect, contain, and respond to data breaches.
Accountability and Compliance
Risk Assessments: Some states mandate data protection impact assessments or similar evaluations for high-risk processing activities.
Vendor Management: Organizations are responsible for ensuring third-party service providers also adhere to relevant privacy and security requirements.
Penalties for Non-Compliance: States have enforcement mechanisms that can include fines, injunctions, and investigations by state attorneys general.
Consumer Request Mechanisms
Verification Processes: Businesses must establish methods to verify consumer identities when they exercise their rights.
Response Timelines: Laws often specify how quickly organizations must respond to consumer requests (e.g., within 45 days).
U.S. State Privacy Laws Taking Effect in 2025
January 1, 2025
Delaware Personal Data Privacy Act (DPDPA)
Overview: Grants Delaware residents greater control over their personal data by introducing rights such as access, correction, and deletion. Businesses must provide transparency in data processing and implement adequate safeguards.
Impact: Organizations operating in Delaware must update their data privacy policies and implement measures to comply with new consumer rights requirements.
Iowa Consumer Data Protection Act (ICDPA)
Overview: Establishes rights for Iowa residents to access and control their personal data, requiring businesses to adhere to specific compliance standards.
Impact: Businesses in Iowa must audit their data handling practices and enable consumers to exercise their rights.
Nebraska Data Privacy Act (NDPA)
Overview: Sets guidelines for businesses managing consumer data, emphasizing transparency and accountability.
Impact: Companies must reassess their data governance practices, including providing clear notices to consumers about data usage.
New Hampshire Data Privacy Act (NHDPA)
Overview: Grants New Hampshire residents control over their personal information and mandates responsible data practices for businesses.
Impact: Businesses must implement systems to process consumer requests and ensure compliance with security standards.
January 15, 2025
New Jersey Data Privacy Act (NJDPA)
Overview: Enhances consumer rights and specifies obligations for businesses, emphasizing transparency and consumer control over personal data.
Impact: Organizations must be ready to handle data access and deletion requests while maintaining robust security measures.
July 1, 2025
Tennessee Information Protection Act (TIPA)
Overview: Focuses on consumer rights related to personal data, requiring businesses to adhere to stringent compliance and transparency standards.
Impact: Companies in Tennessee need to evaluate their data collection and retention policies to align with the law’s requirements.
July 31, 2025
Minnesota Consumer Data Privacy Act (MCDPA)
Overview: Provides Minnesota residents with rights over their personal data and places obligations on businesses to safeguard it.
Impact: Organizations must invest in privacy management tools and ensure clear communication about data practices.
October 1, 2025
Maryland Online Data Protection Act (MODPA)
Overview: Addresses online data protection, granting Maryland residents rights over personal information related to their online activities.
Impact: Companies with an online presence in Maryland must reassess their digital privacy strategies and comply with the law’s requirements.
What These Laws Mean for Businesses
With these laws coming into effect, businesses must:
Conduct Data Audits: Assess how personal data is collected, processed, and stored.
Update Privacy Policies: Ensure transparency and provide consumers with clear, accessible information about their rights.
Implement Consumer Request Mechanisms: Develop systems for managing data access, correction, and deletion requests.
Strengthen Security Measures: Adopt robust data protection practices to mitigate risks and ensure compliance.
Review Vendor Contracts: Make sure third parties and service providers also follow the applicable privacy standards.
What Consumers Should Know
For individuals, these laws mean greater control over personal information. Consumers can:
Request access to personal data held by businesses.
Correct inaccuracies in their data.
Delete personal information in certain circumstances.
Understand how their data is used through clearer privacy notices.
Conclusion
The introduction of these state privacy laws in 2025 underscores the growing importance of data protection in today’s digital world. While the lack of a unified federal law has led to a patchwork of state regulations, each initiative aims to strengthen consumer rights and hold businesses accountable for responsible data handling. By staying informed, organizations can turn compliance into a competitive advantage, and consumers can exercise their newly expanded rights more effectively.
Disclosures
The content provided in this article is intended for general knowledge purposes only and should not be construed as legal advice or a substitute for consulting with a licensed attorney. While we strive to provide accurate and current information, laws and regulations are subject to change, and there is no guarantee that the information contained in our Insights page is up to date nor applicable to your specific situation. We recommend seeking professional legal counsel for any legal matters. This article does not create an attorney-client relationship between the reader and the law firm. For personalized advice, please contact our office directly: info@omnianlegal.com