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As with other U.S. states that have enacted their privacy laws, Montana has introduced its Consumer Data Privacy Act (CDPA). Passed unanimously by the House on April 21, 2023, through Senate Bill 384, this legislation is now awaiting Governor Greg Gianforte’s final approval. The CDPA shares similarities with Connecticut’s CTDPA and introduces a new era for organizations, requiring compliance by October 1, 2024. This article gives a brief overview of CDPA’s key features, provisions, and who needs to comply with the new law.
1. Material Scope
CDPA’s reach extends to entities conducting business in Montana or offering products/services targeted at Montana residents. Notably, compliance is triggered if an entity:
Certain entities enjoy exemptions, including government bodies, non-profit organizations, educational institutions, and those governed by specific federal acts like GLBA, HIPAA, and more. Moreover, the law excludes specific data types, such as medical, FCRA-covered, driver, FERPA, FCA, COPPA, ADA, and employment data.
Navigating the CDPA lexicon is integral for a nuanced understanding of its implications:
Comprehensive obligations await organizations navigating the CDPA landscape:
Processors step into the spotlight, aiding controllers in DSR responses, security adherence, and providing essential DPA information. Their active involvement contributes significantly to the overall data governance framework, ensuring a harmonious relationship in the processing ecosystem.
Empowering consumers, CDPA grants rights such as access, correction, deletion, portability, opt-out, and appeal. Controllers must respond within 45 days, with a possible 45-day extension for complex requests. This provision amplifies consumer agency, placing control over personal data back into the hands of the individuals it concerns.
CDPA’s scope limitations preserve essential activities, allowing compliance with other regulations, research, contractual obligations, immediate safety actions, and more. Striking a balance between privacy and practicality, these limitations recognize the multifaceted nature of data use in contemporary society.
The Office of the Attorney General of Montana spearheads CDPA enforcement. Legal action is possible if violations persist after a 60-day notice, fostering a corrective window for controllers. This authoritative oversight ensures the teeth of the legislation, holding entities accountable for their data practices.
Organizational compliance involves policy establishment, informed consent acquisition, robust security implementations, DSR frameworks, regular risk assessments, employee training, policy updates, and mechanisms for addressing breaches and violations. A holistic approach is imperative, integrating CDPA requirements into an organization’s data-handling ethos.
To wrap up, the Montana Consumer Data Privacy Act (CDPA) introduces clear obligations and empowers consumers. With enforcement led by the Office of the Attorney General, CDPA ensures accountability and shapes a responsible digital ecosystem. As the effective date, October 1, 2024, approaches, organizations will need to explore its implications, understand applicability, acknowledge consumer rights, and prepare proactive steps toward compliance. Stay prepared for this transformative legislation, reflecting Montana’s commitment to safeguarding consumer privacy in the digital age.
By leveraging GetTerms and adhering to best practices, businesses can ensure data protection, build trust with customers, and avoid legal pitfalls associated with privacy law non-compliance in the United States. Stay informed, update privacy policies, and prioritize data protection for success in the digital age.