Unlocking Nebraska’s Data Privacy Act – Are You Prepared?

In the fast-paced world of data privacy compliance, the introduction of Nebraska’s Data Privacy Act (NDPA) has privacy professionals nationwide taking note. Signed into law on April 17, 2024, and going into effect on January 1, 2025, the NDPA signals Nebraska’s debut in the growing cohort of states enacting comprehensive consumer data privacy legislation. Whether you’re a privacy lawyer, compliance officer, technology leader, or security expert, understanding this Act is critical for staying ahead in the ever-evolving privacy landscape.

This article unpacks the essential elements of Nebraska’s new data privacy law, explores its unique features, and provides actionable steps to help your business prepare.

What is Nebraska’s Data Privacy Act?

The NDPA establishes a framework for collecting, processing, and protecting personal data for Nebraska residents. It aligns with trends in other states but carries its own distinctions that demand attention. The Act applies to entities conducting business in Nebraska that are not classified as small businesses under the federal Small Business Act.

Imagine you run a mid-sized e-commerce business selling fitness equipment nationwide. If you actively market to Nebraska residents and process their personal data for targeted advertising, you’re within NDPA’s scope—even if you’re based in another state.

Scope of the NDPA

Unlike most state consumer privacy acts, the application of Nebraska’s Data Privacy Act is not based on a certain revenue threshold or the amount of consumers affected or personal information processed; it instead applies to all businesses that:

1. Conduct business in Nebraska or offer services/products consumed by its residents.
2. Process or sell personal data.

Notably, the NDPA does not apply to entities qualifying as small businesses under federal standards.

Exemptions under the NDPA for certain types of data and entities align with exemptions under other state consumer privacy laws, including:

• HIPAA-protected health information
• Data covered by the Fair Credit Reporting Act (FCRA)
• Educational records under FERPA
• Employment-related data and emergency contact information

For example, if you operate a healthcare clinic in Nebraska, your patient data is exempt under HIPAA. However, if you also sell non-medical wellness products and collect consumer data for marketing purposes, NDPA rules may apply to that portion of your operations.

Like other state laws, the NDPA excludes personal and household activities, focusing squarely on organizational data practices.

Consumer rights under NDPA

Nebraska’s law provides consumers with a robust suite of rights that echo protections found in states like California and Virginia:

1. Access: Consumers can confirm whether a business processes their personal information and request access.
2. Correction: Inaccurate personal data can be rectified.
3. Deletion: Individuals may request the deletion of their personal data.
4. Data Portability: Businesses must provide personal data in a portable, user-friendly format upon request.
5. Opt-Out: Consumers can opt out of data processing for targeted advertising, data sales, or profiling.

These individual rights don’t extend to de-identified or pseudonymized data unless re-identification is possible. Businesses must authenticate requests and may decline those deemed excessive, repetitive, or technically infeasible.

Key requirements for businesses

The NDPA imposes stringent obligations on businesses to ensure compliance, including:

Data minimization

Collect only what is adequate, relevant, and reasonably necessary for disclosed purposes.

For example, if your app collects location data to recommend nearby stores, you cannot collect precise geolocation data unless it’s essential for that functionality.

Consent for sensitive data

Explicit consent is required to process sensitive data, including biometrics and children’s data.

For example, a fitness app processing fingerprints for login must obtain the user’s explicit consent before collecting this data.

Data protection impact assessments (DPIAs)

Conduct regular assessments for processing activities that pose a heightened risk, such as targeted advertising or profiling.

For example, if you use AI to profile customer spending habits, you’ll need to assess risks, such as potential bias or discriminatory outcomes.

Consumer Requests

Respond to consumer rights requests within 45 days, with a possible 45-day extension for complex cases.

The Act also requires reasonable data security measures to safeguard personal data and transparency in privacy notices.

How NDPA stands out

While Nebraska’s law draws inspiration from privacy legislation in states like Texas Data Privacy and Security Act, it has a unique characteristic:

Small Business Carveout: Although Nebraska does not apply to small businesses as determined under the federal Small Business Act, the Act requires such small businesses to obtain opt-in consent for selling sensitive personal information.

Steps to prepare for NDPA compliance

Compliance with the NDPA doesn’t have to be daunting. Here’s how businesses can prepare:

1. Audit your data practices

Conduct a thorough inventory of personal data collected, processed, and shared. Identify data subject to NDPA and ensure lawful bases for its processing.
For example, if you collect customer birthdays for marketing campaigns, you should ensure that you aren’t inadvertently storing unnecessary data, such as sensitive health details.

2. Update privacy policies

Revise privacy notices to include disclosures required under the NDPA, such as the categories of data processed, the purposes of processing, and consumer rights instructions.

3. Implement data security measures

Adopt administrative, technical, and physical safeguards tailored to the volume and sensitivity of data processed.
For example, encrypt sensitive data like customer payment details and ensure regular system updates to prevent vulnerabilities.

4. Train your team

Educate employees on NDPA’s requirements and equip them to handle consumer requests and maintain compliance.

5. Prepare for DPIAs

Develop a framework for conducting DPIAs for high-risk processing activities, documenting findings, and implementing mitigation strategies.

6. Streamline consumer rights requests

Set up secure, efficient mechanisms for receiving and processing consumer requests, ensuring adherence to response timelines.

Navigating the Complex Privacy Landscape

The introduction of Nebraska’s Data Privacy Act underscores the growing patchwork of state privacy laws in the U.S. Businesses must stay vigilant, continuously assess compliance efforts, and adapt to evolving regulations. While daunting, prioritizing consumer privacy can strengthen trust and provide a competitive edge.

Think of privacy compliance like maintaining a well-oiled machine. Neglecting small details, like outdated privacy notices or inadequate safeguards, can lead to larger breakdowns—whether in consumer trust or legal enforcement.

Embracing Privacy as a Pillar of Trust

Nebraska’s Data Privacy Act isn’t just another regulatory hurdle—it’s an opportunity to enhance your data privacy practices and build consumer trust. By proactively addressing compliance, businesses can mitigate risks, avoid penalties, and position themselves as leaders in responsible data stewardship.

After all, as privacy professionals know, staying ahead in this ever-changing landscape is a marathon, not a sprint.