As the calendar flips to 2025, a new era dawns for businesses throughout the United States grappling with a significantly expanded patchwork of state-level privacy regulations. Beginning this January, eight states have enacted comprehensive privacy statutes, challenging companies to keep pace with an evolving legal landscape or risk severe penalties and damaged public trust.
In the initial two weeks of the year, Iowa, Delaware, Nebraska, New Hampshire, and New Jersey will enforce their privacy laws. Tennessee, Minnesota, and Maryland are slated to follow later in the year. These states are enforcing thresholds based on factors such as annual revenue or the volume of personal information processed and target any company operating within their jurisdiction, although specific provisions may vary.
For instance, to fall under Tennessee’s new guidelines, a business must generate over $25 million annually and handle the personal data of over 175,000 consumers, or a smaller number with a significant portion of revenue derived from this data. Similarly, Delaware requires companies that control or process the information of more than 35,000 consumers, or a minimum of 10,000 with an additional revenue condition, to comply with its statutes.
Joining them, Maryland introduces the Online Data Privacy Act effective October 1, 2025. This particular law stands out due to its strict limitations on the scope of data collection and use. Maryland’s statute is precise, allowing data collection only as reasonably necessary to provide or maintain a consumer-requested product or service, setting a higher standard than most by emphasizing “reasonably necessary” use, which restricts other potential data applications without explicit consumer consent.
Maryland also imposes unique constraints on marketing to individuals under 18 and mandates regular risk assessments for data processing algorithms which might threaten consumer privacy. To comply, companies should scrutinize their data collection methods and ensure that any sensitive data handling is justified under the new rules.
With companies potentially facing differing requirements across states, some might consider standardizing their privacy policies to simplify compliance. However, careful attention must still be given to nuances in state laws, such as the universal opt-out mechanisms that several states, including New Jersey and New Hampshire, have adopted.
Businesses seeking to align with these diverse laws should revise privacy disclosures to reflect the various new consumer rights and obligations. Regular audits of data practices will help ensure adherence to each state’s standards. Furthermore, companies must fortify processes meant to facilitate consumer rights, such as requests for data access, correction, and deletion.
Looking ahead, companies must remain agile, keeping abreast of regulatory changes and enforcement landscapes to maintain compliance and uphold consumer trust. Adopting robust privacy frameworks can differentiate a company as a leader in data protection, thereby offering not just compliance but also a competitive edge in today’s data-driven economy.
While every effort has been made to ensure accuracy, this article has been automatically generated and may contain errors. Any concerns regarding content accuracy can be addressed by contacting [email protected] for corrections or retraction requests.