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Discover what’s new in data privacy
In the digital age, understanding data privacy laws is like having a superpower. The Minnesota Consumer Data Privacy Act (CDPA), recently signed into law, is set to reshape how businesses handle consumer information.
But why should this matter to you?
Because as this law comes into effect on July 31, 2025, protecting your data isn’t just a legal necessity—it’s a trust-building superpower that can set your business apart. Even if the CDPA may not apply to your business, it is likely that future states will follow Minnesota’s lead in some novel requirements added by this Act.
Understanding the Minnesota Consumer Data Privacy Act
With data breaches and misuse becoming more common, consumers are demanding greater control over their personal information. The Minnesota Consumer Data Privacy Act provides a framework that not only protects consumer rights but also sets a standard for businesses to follow. Compliance is not just a legal obligation but also a trust-building exercise that can enhance your reputation and customer loyalty.
What you need to know:
The Act applies to entities conducting business in Minnesota or targeting Minnesota residents and meets specific data processing thresholds. This includes processing the personal data of 100,000 consumers or more, or deriving over 25% of gross revenue from the sale of personal data involving 25,000 consumers or more.
Key elements of the Minnesota Consumer Data Privacy Act
1. Consumer rights
The Act provides consumers with several rights, including:
- Access: Consumers can request information about the personal data being processed. Organizations must disclose whether they have collected specific information about them but must not disclose the information itself.
- Correction: Consumers can request corrections to inaccurate data.
- Deletion: Consumers can ask for their data to be deleted.
- Data portability: The right to receive personal data in a usable format.
- Opt-out: Consumers can opt out of data processing for targeted advertising, data sales, and profiling.
- Contest results: Consumers can question decisions made from profiling their data if these decisions have legal or significant effects on them.
- Obtain list of third parties: Consumers have the right to know which specific third parties have received their personal data from the controller. If the controller cannot provide this information, they can provide a list of all third parties that have received any consumers’ personal data.
Compliance isn’t optional. From handling data rights requests within 45 days to getting explicit consent for processing sensitive data, businesses must be proactive. The stakes? A hefty $7,500 fine per violation. Ouch!
2. Transparency and privacy policies
The Act mandates that businesses provide a clear, accessible privacy policy detailing how data is collected, used, and shared. These policies must be understandable to all consumers, including those with disabilities and children. Businesses should regularly review and update their privacy policies to comply with new requirements and ensure they are easily accessible on their website and other communication channels.
3. Data security
Data security is crucial to avoid significant financial and reputational damage from breaches. The Act mandates that businesses adopt reasonable administrative, technical, and physical measures to protect personal data from unauthorized access, use, or disclosure. This includes conducting regular security audits, updating protocols, and training employees on best practices such as encryption and access controls.
Additionally, under the Minnesota Consumer Data Privacy Act, businesses must inventory their data to identify and manage personal data more effectively, ensuring all security measures are adequately applied.
4. Data minimization and purpose limitation
The Act requires businesses to collect only the data necessary for its intended purpose and to avoid retaining data longer than needed. Businesses should review their data collection practices, implement data retention schedules, and promptly delete data that is no longer required.
5. Accountability and governance
The Act requires businesses to document their data protection policies, conduct data protection impact assessments (DPIAs) for high-risk processing activities, and manage data that cannot be identified or linked to individuals. Businesses should establish a comprehensive data governance framework, appoint a data protection officer, document all compliance and processing activities, and perform regular privacy audits.
Additionally, DPIAs must be thorough, considering all potential risks and mitigation strategies for processing activities that could significantly affect data subjects.
What’s next?
Here’s your game plan:
- Audit your data practices: Know what data you collect, how it’s used, and who it’s shared with. This is your baseline.
- Revamp your privacy policies: Make them clear, accessible, and compliant with the new law. Transparency is key.
- Set up easy opt-outs: Give your customers control. Make opting out simple and straightforward.
- Train your team: Ensure everyone understands the importance of data privacy and how to handle consumer requests.
- Stay informed: The law is ever-evolving. Keep an eye on changes and be ready to adapt. For more detailed insights and tools to help you navigate these changes, visit Nymity Research.
Taking action and moving forward
The Minnesota Consumer Data Privacy Act is more than just another regulation—it’s a signal that the future of business is privacy-first. By embracing these changes now, you’re not just avoiding fines; you’re investing in customer trust and loyalty. So, gear up, stay informed, and make privacy your superpower!
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