State-level privacy regulations in the United States are expanding rapidly, and businesses should be prepared for a significant compliance challenge in the coming year. In 2025, eight comprehensive state data privacy laws will go into effect, reflecting the growing regulatory momentum as states push businesses to adapt to increasingly complex compliance requirements across jurisdictions. This heightened regulatory environment requires businesses to prioritize understanding the nuances of each law while maintaining consistent operational practices across multiple states. Those already navigating existing laws like California’s CCPA/CPRA or Virginia’s CDPA may find adjustments for the new laws manageable but still complex.
For businesses, the compliance challenge is not only about meeting the legal requirements but also establishing processes that foster consumer trust. The eight new state privacy laws set to take effect in 2025 underscore the importance of proactive privacy compliance. Organizations must assess their applicability, streamline their processes for rights requests, and keep their privacy notices clear and up-to-date to minimize risks and build consumer trust. Below, we break down the key steps businesses need to take to prepare for these new privacy regulations and ensure compliance by 2025.
1. Determine Applicability
Evaluating whether your business meets the criteria under each state law is the first step in preparing for the new 2025 state privacy laws. Every state law has different thresholds for applicability, whether it’s the number of consumers whose data is processed or revenue-based criteria. It’s crucial for businesses to assess their operations against these thresholds. For example, Nebraska’s NDPA applies to all organizations operating in the state unless they qualify as a small business under federal SBA definitions, while Tennessee adds a revenue threshold of $25 million in addition to processing requirements. Businesses must understand these nuances to determine if they are subject to each state’s regulations.
A comprehensive data mapping exercise should follow the initial evaluation. This exercise will help identify what data your business collects, where it is stored, and how it is processed. Understanding your data landscape is essential for compliance, as it allows you to pinpoint areas where your practices may fall short of legal requirements. Data mapping can highlight potential risks and inform necessary updates to privacy policies and practices. Ensuring that you have a clear picture of your data collection, storage, and processing activities is foundational to meeting the new regulations effectively and efficiently.
2. Revise Privacy Policies
Once you have determined the applicability of each state law, the next step is to revise your privacy policies to ensure compliance with the relevant legal requirements. Your privacy policy must disclose categories of personal data collected, the purposes for processing this data, and the rights consumers have under the respective state laws. Additionally, certain states like Delaware, Minnesota, and Maryland require businesses to include disclosures about third-party data sharing. These states mandate that businesses provide a list of third parties with whom a consumer’s personal data has been shared, adding another layer of complexity to your privacy policy.
Updating your privacy policies is not just about compliance; it’s also an opportunity to build trust with consumers. A transparent, comprehensive privacy policy demonstrates your commitment to protecting consumer data and respecting their rights. Make sure your policy is clear and easily accessible to consumers, ensuring they understand how their data will be handled and what rights they have. Keeping your privacy policy up-to-date in line with evolving laws will help minimize risks and enhance your reputation as a responsible business.
3. Improve Rights Request Procedures
Updating processes for handling access, deletion, correction, and opt-out requests is critical to comply with state-specific requirements under the new privacy laws. Each state may have unique obligations that affect how you manage consumer rights requests. For instance, businesses must be capable of handling universal opt-out mechanisms such as Global Privacy Control signals, where required. Ensuring you have robust procedures in place to honor these requests promptly and accurately is fundamental to compliance and fostering consumer trust.
In addition to updating these procedures, businesses should implement functionality that supports efficient handling of rights requests. Automating certain aspects of the process can reduce the administrative burden and ensure consistency. For example, implementing an online portal where consumers can easily submit their requests and track their status can streamline the process and enhance transparency. Ensuring that your team is trained to manage these requests and understands the state-specific requirements will further strengthen your compliance efforts.
4. Perform Privacy Impact Assessments
Performing privacy impact assessments is a requirement in states like Maryland and Minnesota, particularly for high-risk processing activities, including profiling and the use of algorithms. These assessments help businesses evaluate potential risks associated with their data processing activities and ensure they are in compliance with legal requirements. Developing a framework to conduct these assessments will allow you to systematically review and document your data processing activities, identify potential risks, and implement measures to mitigate these risks.
Regularly conducting privacy impact assessments not only helps you stay compliant but also demonstrates your commitment to responsible data practices. Documenting these assessments provides a record of your compliance efforts and can be useful in case of regulatory inquiries. Ensuring that your assessments are comprehensive and up-to-date will help you maintain compliance and build consumer trust. Establishing a culture of privacy within your organization, where privacy considerations are integrated into all data processing activities, will further strengthen your compliance posture.
5. Educate Teams and Update Agreements
State-level privacy regulations in the U.S. are expanding at a fast pace, and businesses should brace for significant compliance challenges in the coming year. In 2025, eight comprehensive state data privacy laws will take effect, showcasing the increasing regulatory momentum as states push businesses to adapt to more complex compliance requirements. This heightened regulatory environment demands that businesses prioritize understanding the specifics of each law while maintaining consistent operations across multiple states. Companies already familiar with laws like California’s CCPA/CPRA or Virginia’s CDPA might find the new adjustments manageable but still intricate.
For businesses, compliance is not just about meeting legal criteria but also establishing processes that build consumer trust. The eight new state privacy laws set for 2025 highlight the necessity of proactive privacy compliance. Organizations must evaluate their applicability, streamline processes for handling rights requests, and update privacy notices to minimize risks and foster trust with consumers. Below, we outline the key steps businesses need to follow to prepare for these new privacy regulations and ensure compliance in 2025.
