A key legislative committee agreed this week to create a task force to study consumer privacy rights and protections rather than advance a proposal with severe implications for small businesses.

The Government Administration and Elections Committee was considering legislation mirroring California's Consumer Privacy Act that would
enhance privacy rights and consumer protections.

CBIA and other business organizations warned that the bill, SB 1108, could have significant unintended consequences, particularly for small businesses.

For example, many lawmakers were initially under the impression that the bill would only apply to large businesses.

The coalition pointed out businesses with even modest website visits or store credit card transactions could trigger major data management requirements.

Rather than move the bill forward, committee members approved substitute language creating a task force to study the interest consumers have in protecting their privacy and explore ways to achieve this without overly burdening businesses.

The task force will also examine how businesses use consumers' personal information.

The 12-member task force must submit its findings and recommendations to the legislature by Jan. 1, 2020.

For more information, contact CBIA's Eric Brown (860.944.8792) | @CBIAericb

Filed Under: Business Law

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