Does Your State Care About Your Digital Privacy?

On February 16, 2025 By newsroom Topic: Technology Buyers Guide

Understanding the state of digital privacy laws in the U.S. and what it means for you.


Current Landscape of Digital Privacy Laws in the U.S.

States with Privacy Laws:
- Only 18 states have enacted digital privacy laws.
- Most laws grant baseline rights:
- Access to your data.
- Deletion of your data upon request.
- Opt-out of targeted ads and data sharing.
- Some require companies to conduct risk assessments.

Key Weaknesses:
- Many laws are criticized for being too lenient, offering limited consumer protection.
- Most focus on post-collection consumer action (e.g., opting out) rather than restricting initial data collection.


What Strong Privacy Laws Should Include

Data Minimization:
- Companies should only collect data necessary for the service you requested (e.g., a flashlight app shouldn’t access your location).
- Currently, Maryland leads with strong data minimization requirements.

Universal Opt-Out Mechanisms:
- Tools like Global Privacy Control automatically signal your preferences to websites.
- Only 12 states mandate companies to honor these signals.

Authorized Agents:
- Allow third parties to manage your privacy rights (e.g., telling companies to delete or not sell your data).
- Two-thirds of states with privacy laws permit this.

Consumer Enforcement Rights:
- Only California allows private lawsuits for privacy breaches (and only for security incidents).
- Advocates push for broader private rights of action to empower consumers.


Challenges and Loopholes in Current Laws

Narrow Definitions of Data Sales:
- Some laws exclude exchanges of data for non-monetary benefits, allowing companies to bypass restrictions.

Exemptions for "Pseudonymous Data":
- Loopholes for anonymized data often fail since identifiers like IP addresses can still reveal identities.

Industry-Specific Gaps:
- Sectors like healthcare and finance rely on outdated laws like HIPAA and Gramm-Leach-Bliley, leaving ambiguities.

Small Business Exemptions:
- Many laws exempt small businesses, despite their significant role in the data economy.

Enforcement Issues:
- Most laws rely on underfunded state attorneys general for enforcement, resulting in few actions against violators.


Recent Developments and Promising Models

Stronger State Laws:
- Connecticut’s model includes universal opt-out and authorized agent provisions.
- Maryland’s law (2023):
- Robust data minimization.
- Protections for sensitive data (e.g., race, religion, health).
- Civil rights elements to prevent discriminatory use of data.

California’s Role:
- California Consumer Privacy Act (CCPA): Pioneered state-level privacy protections.
- Newer laws, like Maryland’s, seek to expand on California’s model.


Simple Steps to Protect Your Privacy

Adjust Smartphone Settings:
- Limit GPS tracking and app permissions.

Enable Browser Privacy Features:
- Use secure browsers or privacy-protecting extensions.

Use Privacy Tools:

Be Proactive:
- Regularly review app and website privacy policies.
- Opt out of unnecessary data collection whenever possible.


Takeaway:

While state laws are evolving, many still leave consumers vulnerable. Advocating for robust protections like data minimization, universal opt-outs, and stronger enforcement is crucial. In the meantime, individual steps can help safeguard your personal data.


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