State discloses findings about the structure of extensive privacy legislation, as presented in the report by FPF
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The privacy landscape in the United States is undergoing a significant transformation, as highlighted in the recent report titled "Anatomy of State Comprehensive Privacy Law." This report identifies five key trends shaping the future of state privacy laws.
Core Trends:
- Expansion of State Laws: By mid-2025, around 20 states are expected to have enacted comprehensive consumer privacy laws, with several new laws becoming effective in 2025 and beyond, including those in Minnesota, Tennessee, Maryland, Indiana, Kentucky, and Rhode Island. Connecticut recently overhauled its privacy law to strengthen protections and pierce exemptions like those in the GLBA (Gramm-Leach-Bliley Act).
- Enforcement Intensification: Enforcement actions are accelerating, shaping the compliance landscape. The California Attorney General, for instance, has secured large settlements under the California Consumer Privacy Act (CCPA), focusing on failures in opt-out honour, data use beyond purposes, and inadequate vendor management.
- Legal Variations: State laws generally fall into three styles — California-style, Virginia-style, and Utah-style — each with distinct requirements and enforcement approaches. Understanding these styles is critical for multi-state business compliance.
- Core Legislative Components: Key elements across these laws include consumer rights to access, delete, correct, and opt-out of sale or sharing of personal data. Obligations on businesses to provide transparency about data practices are also crucial. Restrictions on sensitive data categories such as biometric, geolocation, and health-related information are becoming more stringent. In addition, increased regulation of data related to minors and social media, simplification of consumer opt-out mechanisms, and emerging provisions addressing AI and automated decision-making technologies are emerging trends.
- Enforcement by State Attorneys General: In the absence of federal privacy legislation, state attorneys general have become key enforcers and regulators, increasingly actively pursuing violations and shaping privacy standards at the state level.
Summary Table of Key Focus Areas
| Trend/Component | Description | |----------------------------------------|-------------------------------------------------------------------------------------------------| | State Law Proliferation | 20 states with laws; new laws effective in 2025+ | | Enforcement Actions | Increased settlements and enforcement, especially in California and Connecticut | | Law Styles | California-style (broad, strong consumer rights), Virginia-style (balanced), Utah-style (lighter)| | Consumer Rights | Access, deletion, correction, opt-out of sale/sharing of personal data | | Sensitive Data Regulation | More stringent rules on biometric, geolocation, health, and minor’s data | | Opt-out Mechanism Enhancement | Easier consumer opt-out including honoring industry signals like Global Privacy Control | | AI and Automated Decision-Making | Emerging rules addressing AI use in data processing and decision-making | | Role of State AGs | Active enforcement and regulation due to lack of federal law |
These developments collectively indicate a trend towards more rigorous, diverse, and actively enforced state privacy regimes with ongoing legislative amendments and enforcement actions influencing best practices and compliance requirements across the U.S. Other emerging trends include the emergence of substantive data minimization requirements and changes to applicability thresholds.
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