US State Privacy Laws: What Businesses Need to Know

Navigating US state privacy laws* is becoming essential for businesses of all sizes. With more states enacting their own data protection rules, it’s critical to understand your obligations and build scalable compliance practices.

Why State Privacy Laws Matter for Your Business

From California to Virginia to Texas, U.S. states are passing comprehensive privacy legislation that affects how businesses collect, use, and store consumer data. These laws impose new duties like consent, notice, and opt-outs — and failure to comply can result in hefty fines or legal exposure.

Key Points of Major State Privacy Laws

• **California (CCPA/CPRA)** – The most expansive U.S. state data privacy law. Covers a broad category of businesses with high potential pentalies for non-compliance.
• **Virginia (VCDPA)** – Allows consumers to opt-out from personal data processing, with enforcement by the state Attorney General. Non-discrimination in processing as an explicit data subject right.
• **Colorado (CPA)** – Allows general opt-out cconsents for personal data, but requires opt-in consents to process sensitive data.
• **Connecticut (CTDPA)** – Includes increased child data protections and sensitive data limits for children under 13.
• **Utah (UCPA)** – Applies to fewer businesses but includes transparency does not have a private right of action.
• **Texas (TDPSA)** – Recently enacted law with broad coverage and enforcement beginning in 2024.

Common Compliance Requirements Across States

• Privacy Notices: Disclose data collection, use, and sharing policies in plain language.
• Consent & Opt-Out: Allow users to opt out of the processing, sale, or sharing of personal information.
• Data Access & Deletion: Give users the right to access and request deletion of their data.
• Data Security: Maintain reasonable safeguards to protect data from breaches.
• Data Processing Agreements: Execute contracts with vendors who handle personal data.
• Children’s Data Protection: Obtain parental consent for data collected from minors in applicable states.

Key Differences Between State Laws

While many laws share core principles, critical differences include:

– **Thresholds for applicability** (based on revenue or volume of data processed)
– **Scope of enforcement** (AG-only vs. private right of action)
– **Definition of ‘sale’ or ‘share’ of data**
– **Consumer rights coverage** (data subject rights vary from state to state)
– **Consent mechanisms** (opt-in vs. opt-out consent)

How to Build a Multi-State Privacy Compliance Program

• Conduct a data inventory to identify what personal data you collect and where it’s stored.
• Map out which state laws apply based on your customer base.
• Standardize privacy policies and consent mechanisms to meet the strictest applicable standard.
• Update vendor contracts with data protection and breach notification language.
• Implement tools to support opt-out requests, access, and deletion rights.
• Assign a privacy lead to oversee compliance and respond to consumer requests.

Where Legal Counsel Adds Value

Navigating state-by-state privacy laws can be overwhelming — especially as laws evolve and enforcement ramps up. At Founders Legal, our Data Privacy & Cybersecurity and Business & Corporate Law teams help you build compliance programs tailored to your size, industry, and risk level. Need strategic support?

One Country, Many Rules

With no single federal privacy law, businesses must comply with a patchwork of *us state privacy laws*. Proactive compliance can reduce legal risk, boost customer trust, and prepare you for future federal legislation.

FAQ

Q1: Does my small business need to comply with state privacy laws?
A1: It depends on your revenue and volume of personal data processed. Some laws apply only to larger businesses, but others may apply based on data activity.

Q2: What’s the difference between CCPA and CPRA?
A2: CPRA amends and expands CCPA — adding rights like correction and limiting sensitive data use.

Q3: Can I create one privacy policy for all states?
A3: Yes, but it must cover the most stringent requirements to be valid across jurisdictions and you must give data subjects rights corresponding to the state law which covers them.

External Resource

– IAPP – US State Privacy Legislation Tracker

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