An act relating to data brokers and personal information
Impact
If enacted, this bill will significantly impact state laws concerning data privacy and consumer rights. It introduces stringent rules for data brokers, including mandatory annual registration and the establishment of a Data Brokers Registry Fund. This fund would help ensure that the operational costs of managing the regulations are covered while promoting transparency in data handling practices. By making it easier for consumers to delete their data and safeguard their privacy, this legislation aims to enhance consumer control over personal information.
Summary
S0070 is a bill introduced in 2025 which focuses on enhancing the protection of personal information for Vermont residents by establishing regulations around data brokers. The bill mandates that data brokers provide notice of security breaches, require verification of the legitimate purpose for which personal information is used, and establish a system for consumers to request deletion of their personal information. The designated accessible deletion mechanism must be in place by 2028, allowing consumers to streamline their requests across multiple data brokers.
Contention
While supporters of S0070 argue that it will bolster consumer rights and strengthen data protection, there are concerns from various stakeholders regarding the feasibility of compliance for smaller data brokers. Critics argue that the cost and administrative burden of adhering to these regulations could disproportionately affect smaller businesses, which may struggle to meet the new compliance requirements. This raises important questions about the balance between consumer protection and the operational capabilities of data brokers in Vermont.