Data Privacy Proposal Could Result in Unintended Consequences on Small Business

A data privacy bill that could cause costly and superfluous lawsuits against businesses is under consideration in the House Commerce and Economic Development Committee. As this proposal progresses, the Vermont Chamber will work to ensure the legislature has a comprehensive understanding of the potential impacts on the Vermont business community. Our advocacy will encourage legislators to thoroughly study and understand this complex issue and consider legislation passed in other states in which data privacy laws balance the protection of consumer privacy with manageable regulation on businesses.  

Attorney General Charity Clark testified on the need for data privacy legislation to give the Attorney General’s Office grounds for enforcement. Clark acknowledged concerns shared by the Vermont Chamber, that compliance for small companies could be very difficult, time-consuming, and costly. The Chamber has additional concerns that companies that own data will not be able to use it for purposes such as targeted advertising. Other business representatives have requested exemptions for financial institutions, healthcare research companies, and companies covered by HIPAA, or a working group to study the issue before making legislative changes.