We experienced a turbulent 2022 — not only economically, but also in terms of changes in data privacy regulations, which massively impact the way marketers can collect data and target their audience with tailored marketing campaigns. In 2023, new data privacy laws will reshape U.S. privacy compliance for businesses.
New state laws in 2023
Small and medium-size businesses will need to prepare for five new state laws being implemented by California, Utah, Virginia, Colorado, and Connecticut throughout 2023.
California and Virginia were the first to roll out new privacy laws, which took effect on January 1, 2023. The existing California Consumer Privacy Act from 2020 will be amended by the California Privacy Rights Act (CPRA). Under CPRA and Virginia’s Consumer Data Protection Act (VCDPA), businesses are required to provide notice to consumers if they plan to collect and sell or use their data and allow consumers to opt out of the sale and sharing of their information. Consumers will have the right to access their personal data for updating and can request that the business delete it altogether. Organizations will face limitations on how much data they can collect and use under new data minimization requirements; they are only allowed to collect personal information that is necessary for legitimate business functions. Businesses to which VCDPA applies are required to receive consumers’ consent to opt-in before collecting sensitive data, and consumers are given the choice to opt out of sharing.
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