Georgia enacts privacy law restricting consumer data disclosure by companies from 2026

On February 6, 2025, the Georgia State Legislature introduced Senate Bill 111, a significant piece of legislation aimed at enhancing consumer privacy protections across the state. This bill seeks to establish a comprehensive framework for how businesses handle personal information, aligning with national standards set by the National Institute of Standards and Technology (NIST) and similar privacy frameworks.

The primary purpose of Senate Bill 111 is to ensure that businesses, referred to as "controllers" or "processors," implement privacy programs that are not only robust but also adaptable to future revisions of privacy standards. Key provisions of the bill require these entities to conform to updated privacy frameworks within two years of any new publication, thereby maintaining a dynamic approach to consumer data protection.

One of the notable aspects of the bill is its emphasis on the scale and scope of privacy programs, which must be tailored to the size and complexity of the business, the nature of its activities, and the sensitivity of the personal information it processes. This nuanced approach acknowledges that not all businesses operate under the same conditions and thus should not be held to a one-size-fits-all standard.

However, the bill has sparked debates among lawmakers and stakeholders. Proponents argue that it is a necessary step to safeguard consumer rights in an increasingly digital world, where data breaches and privacy violations are prevalent. Critics, on the other hand, express concerns about the potential burden on small businesses, which may struggle to comply with the stringent requirements outlined in the legislation.

Additionally, the bill includes provisions that prevent local governments from imposing conflicting regulations on data processing, thereby creating a uniform standard across Georgia. This preemption clause aims to simplify compliance for businesses operating in multiple jurisdictions within the state.

The implications of Senate Bill 111 are far-reaching. Economically, it could enhance consumer trust in businesses that prioritize data privacy, potentially leading to increased customer loyalty and engagement. Socially, it addresses growing public concerns about data security and privacy, reflecting a broader trend towards greater accountability in how personal information is managed.

As the bill moves through the legislative process, its future remains uncertain. Stakeholders are closely monitoring discussions for potential amendments that could alter its scope or implementation timeline. If passed, Senate Bill 111 is set to take effect on July 1, 2026, applying to all contracts entered into, amended, or renewed after that date. The outcome of this legislation could significantly shape the landscape of consumer privacy rights in Georgia, setting a precedent for similar initiatives in other states.