By: Linda L. Goodman
The Vermont Data Privacy Act (H.121), sometimes known as the “VTDPA,” was vetoed by Governor Phil Scott on Thursday, June 13, 2024, possibly postponing the implementation of what has been praised as one of the strongest consumer data privacy laws in the country. In order to override the veto, the VTDPA will now go to the General Assembly, where a two-thirds majority in each chamber will be required. On Monday, June 17, the General Assembly is expected to convene.
The Governor’s veto of the bill is based on the same grounds that set the VTDPA apart: a private right of action, enhanced safeguards against addictive online content for minors, and distinctively broad definitions and provisions, particularly with regard to its particular data minimization requirements.
Governor Scott specifically said in his letter to the General Assembly that the law will put people at risk of “unnecessary and avoidable levels.” The governor identifies three major areas that he feels are at risk in the letter:
- Vermont’s private right of action could make it a national outlier and more hostile to businesses and non-profits, causing fear and concern among small businesses. Despite its narrow impact, it negatively impacts mid-sized employers.
- The “Kids Code” provision is crucial, but similar legislation in California has been stopped due to potential First Amendment violations. Vermonters should wait for the court’s decision before implementing a bill that addresses legal pitfalls, as Vermonters will already face expensive litigation from the Attorney General’s “Big Oil” case.
- The bill’s complexity and expansive provisions create new burdens and competitive disadvantages for small and mid-sized businesses in Vermont. These businesses are already facing pressures from the Legislature, including payroll tax, Clean Heat Standard, Renewable Energy Standard, and significant property tax increases.
In his letter to the General Assembly, the Governor said, “The bottom line is, we have simply accumulated too much risk. However, if the underlying goals are consumer data privacy and child protection, there is a path forward. Vermont should adopt Connecticut’s data privacy law, which New Hampshire has largely done with its new law. Such regional consistency is good for both consumers and the economy.”
We will have to await to see how the legislature will proceed with consumer data protection.
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This article is a publication of The Goodman Law Firm and is intended to provide information on recent legal developments and it is not intended to be and should not be relied on as legal advice for any particular matter. This article does not create an attorney-client relationship, nor should it be construed as legal advice or an opinion on specific situations. This may constitute “Attorney Advertising” under the Rules of Professional Conduct and under the law of other jurisdictions.
Linda L. Goodman is the founder of The Goodman Law Firm, concentrating its practice in internet business and law. Her firm’s clients include Advertisers, Affiliates, Affiliate Networks, and ISP’s.
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