Over the past year, website operators have experienced a proliferation of lawsuits under the Federal Video Privacy Protection Act (“VPPA”), a Reagan-era statute prohibiting the nonconsensual disclosure of an individual’s video tape rental history. Despite its nondigital origin, litigation under the VPPA has successfully targeted the ubiquitous use of tracking technologies on businesses’ websites, creating a risk of significant class-action damages under VPPA’s $2,500 per violation statutory-damages clause. Read on for more details about the risk of litigation under the VPPA and how best to avert it.
Failing to Comply With the Slew of New Data Privacy Laws Can Be Costly to Companies
Over the past few years, data privacy and security has been the focus of many state legislatures. CA, CO, CT, IA, UT and VA have already passed comprehensive data privacy laws. Indiana joined them on May 1, 2023 when the Governor signed the latest consumer privacy bill into law. Many other states have bills in the legislatures that are likely to become law, including FL, MT and TN (where the bills are awaiting the governors’ signatures). Though most of these laws apply to businesses that control or process personal data of 100,000 or more residents in each of those states, California’s data privacy law applies to any business that has gross annual revenue of over $25M if it collects the personal data of any California resident, which includes employees and business contacts.
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Iowa Joins Data Privacy Vanguard
On March 29, 2023, Iowa became the latest in a small but growing number of states to enact comprehensive data privacy legislation. Like its counterpart laws in California, Connecticut, Colorado, Utah and Virginia, Iowa’s data privacy law – formally titled “An Act Relating to Consumer Data Protection, Providing Civil Penalties, and Including Effective Date Provisions” (“IDPL”) – provides a detailed framework regulating the collection and use of consumer personal data, and affords consumers various rights as to data collected about them. Fortunately, many of the requirements imposed by the IDPL, which goes into effect on January 1, 2025, are largely similar to those applicable in the other five states, and especially those in Connecticut, Colorado, Utah and Virginia.[1]
The Door Opens for Astronomical Damages Under BIPA
An Illinois Supreme Court ruling on February 17, 2023 opened the door to astronomical damages under the Illinois Biometric Information Privacy Act (“BIPA”). Enacted in 2008, BIPA provides for a private right of action against an entity that collects or discloses a person’s biometric identifier without opt-in consent.
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New Year Brings New State-Level Data Privacy Protections
As 2022 draws to a close, it is important to keep in mind that key state-level regulations on consumer and employee data privacy will become effective as soon as 2023 begins. Data security measures, personal data processing activities and privacy policies of businesses covered by the regulations are now proscribed specific standards and requirements in