Business Success

Business voices played a crucial role in ensuring an extreme data privacy bill, in its current form, did not become law. While businesses support comprehensive consumer data privacy legislation, H.121 was rife with provisions that lacked clarity and would have unintended consequences for businesses, consumers, and the Vermont economy. The Governor and Senators listened to their constituent businesses on this issue and voted accordingly so an improved bill can be passed in the next biennium.

Earlier this session, when Vermont businesses tried to provide input during the policymaking process, they were dismissed by some politicians as misinformed or as being influenced by big tech. However, a bipartisan group of fifteen Senators decisively rejected that misleading narrative and voted to uphold the veto, deciding to pump the breaks and return to the drawing board. See how your Senators voted, here and how your Representatives voted, here. On the floor, Senator Christopher Bray (D-Addison) stated, “The uniformity of the concerns that I heard from the business community made me re-read and ask questions…there is so much uncertainty in [H.121] that it has Vermont businesses deeply concerned about the consequences of enactment… there is wisdom in pausing when you find that the work you have done, no matter how well intention, may have negative consequences.” Senator Ann Cummings (D-Washington), who also voted to uphold the veto, stated, “We need to make sure the business community supports this… We need to make sure we get this right because it is a very serious issue.”

The outpouring of feedback from Vermont businesses in recent weeks no doubt played a key role in securing this result. The successful veto of H.121 means that a more balanced bill can now be crafted in a future session. The Vermont Chamber is committed to working with legislators in the next biennium to pass an improved bill that aligns with neighboring states via a process that respects all voices at the table.

H.121, a data privacy bill passed by the legislature and vetoed by Governor Scott, is a well-intentioned attempt to protect consumers’ personal data that misses the mark. In its current form, this bill will create major problems for Vermont’s businesses, consumers, and economy. Our organizations strongly support comprehensive data privacy legislation, but H.121 goes far beyond the measures adopted in neighboring states like Connecticut and New Hampshire, which we support as workable models. H.121 goes far beyond these measures and would make it harder for businesses to serve their Vermont customers than to serve those in other states. 

Unfortunately, when Vermont businesses tried to provide input throughout this policy-making process, they were routinely dismissed by some in the legislature as misinformed or as being influenced by big tech. This is an inaccurate characterization. Further, it has had a chilling effect on the ability of Vermont businesses to engage in the legislative process for fear of being villainized and of ramifications for their businesses. 

This bill will put Vermont businesses at a serious disadvantage, making them less competitive than businesses in other states, raising their marketing and compliance costs, and exposing them to potential legal battles. H.121, as passed by the Legislature, is unworkable. It threatens the survival of many local businesses and would put a serious dent in the Vermont economy.

H.121 could also spell the end of loyalty and other programs that many Vermonters benefit from. These programs, like airline miles, hotel and credit card points, multi-mountain ski passes, savings on gasoline, and more, are all at risk. Under the new law, it would be too difficult, expensive, and risky for businesses to continue offering these programs and benefits to Vermonters.

Unfortunately, H.121 is not balanced legislation. Vermont should join our neighboring statesby adopting a comprehensive privacy law that creates regional alignment. This would protect consumers and hold bad actors responsible while helping businesses to comply. H.121 as drafted, does not accomplish this. The 105-page document is rife with provisions that lack clarity and will lead to unintended consequences.

We urge legislators to support Governor Scott’s veto of H.121 and return next year to work on creating a better bill. Vermont can have strong privacy laws that protect consumers without hurting local businesses. Let’s find a solution that works for everyone.

Signed,

Associated Industries of Vermont

Central Vermont Chamber of Commerce

Heating and Cooling Contractors of Vermont

Vermont Association of Broadcasters

Vermont Chamber of Commerce

Vermont Fuel Dealers Association

Vermont Independent Restaurants

Vermont Retail and Grocers Association

Vermont Ski Areas Association

Vermont Technology Alliance

Vermont Vehicle and Automotive Distributors Association