I. Introduction
Vermont has long been a pioneer in addressing data privacy concerns, particularly in the area of data broker regulation. While the state does not currently have a fully enacted, comprehensive consumer privacy law, recent legislative efforts signal a strong interest in strengthening individual rights and business accountability around personal data handling.
This overview highlights the key elements typically seen in Vermont’s privacy proposals and outlines how businesses can start preparing for future compliance as the state moves toward broader consumer data protections.
II. Who Might Be Required to Comply
Future legislation is expected to apply to businesses and entities that:
- Collect, license, store, or process personal information of Vermont residents;
- Operate as data brokers, buying, selling, or trading consumer data without a direct relationship with the individual;
- Collect biometric data or sensitive personal information.
III. Key Definitions (Common Across Proposals)
- Biometric Identifier: Unique biological traits (like fingerprints or iris scans) used to identify individuals.
- Data Broker: Any business that collects and sells personal information about consumers without having a direct relationship with them.
- Personal Data: Broadly includes names, addresses, online identifiers, login credentials, biometric data, and any data that can reasonably identify an individual or household.
IV. Anticipated Obligations for Organizations
A. Lawful Data Use
Entities would be required to use personal data only for clear, legitimate purposes—and ensure data processing aligns with the original intent and consent obtained.
B. Consent Requirements
Opt-in consent may be required for collecting sensitive information like biometric data. Consumers must be clearly informed and given the ability to revoke consent easily.
C. Data Broker Registration
Data brokers may be required to register annually with the state, disclose data practices, and provide opt-out mechanisms.
D. Data Minimization
Organizations must only collect and retain personal data that is necessary and proportionate to their business purpose, especially if sourced from third parties.
E. Do Not Track / Universal Opt-Out
Proposals often include a requirement for businesses to honor user-enabled global opt-out signals for data sales, tracking, or targeted advertising.
F. Privacy Notices
Privacy disclosures may need to include:
- What categories of data are collected and why.
- Whether data is shared or sold.
- Mechanisms for users to opt-out or exercise their rights.
- Specific notices for biometric data collection and usage.
G. Security Requirements
Organizations would be expected to adopt reasonable security safeguards based on the nature of the data they handle.
H. Data Breach Notification
Businesses may be required to:
- Notify impacted consumers promptly, typically within 45 days;
- Inform the Vermont Attorney General of major breaches; and
- Disclose what data was affected and what steps were taken in response.
V. Anticipated Consumer Rights
Expected rights under future legislation may include:
- Right to Stop Collection: Consumers could ask businesses to stop collecting their data.
- Right to Delete: Individuals may request the deletion of personal data.
- Right to Opt-Out of Sale: Consumers could prevent businesses from selling or sharing their personal information.
Mechanisms must be user-friendly and honored within a short time frame (e.g., 10 days), potentially including opt-outs applicable to all registered Vermont data brokers.
VI. Enforcement Authority
Enforcement would likely fall under the Vermont Attorney General, with powers to investigate and penalize non-compliant organizations. Courts may also award damages, fees, or injunctive relief to impacted consumers.
VII. How Businesses Can Prepare Today
Even without an active law in place, Vermont’s direction is clear. Businesses can get ahead by:
- Mapping and classifying the personal data they collect and process;
- Establishing lawful data use and consent mechanisms;
- Registering as a data broker (if applicable);
- Building workflows to handle consumer rights requests;
Publishing transparent privacy notices; and
- Training teams on data protection policies and emerging state requirements.
VIII. How Securiti Can Help
Securiti’s Data Command Center provides businesses with the intelligence and automation needed to stay ahead of state-level privacy requirements—whether existing or on the horizon.
Our platform enables:
- Data discovery and classification across hybrid environments,
- Fulfillment of consumer rights requests,
- Consent management and opt-out handling,
- Risk assessments and breach reporting automation,
- Scalable compliance with evolving laws like those proposed in Vermont.
Request a demo to see how Securiti can future-proof your privacy program in Vermont and beyond.
