Vermont Data Privacy Act sets phased implementation schedule starting July 2025

On February 18, 2025, the Vermont State Legislature introduced Senate Bill 71, a significant piece of legislation aimed at enhancing data privacy protections for residents. The bill, titled the Vermont Data Privacy and Online Surveillance Act, seeks to regulate how personal data is controlled and processed by businesses operating within the state.

The primary purpose of Senate Bill 71 is to establish clear thresholds for data processing activities that trigger compliance requirements for businesses. Specifically, the bill targets entities that either control or process the personal data of at least 12,500 consumers or those that handle data for at least 6,250 consumers while deriving over 20 percent of their gross revenue from the sale of such data. This dual threshold approach aims to ensure that both large and medium-sized businesses are held accountable for their data practices.

Key provisions of the bill include a public education and outreach initiative, which is set to take effect on July 1, 2025, alongside the establishment of the Vermont Data Privacy and Online Surveillance Act. The act itself will be phased in over several years, with different sections becoming effective at staggered intervals from 2026 to 2028. This gradual implementation is designed to give businesses time to adapt to the new regulations.

The introduction of Senate Bill 71 has sparked notable discussions among lawmakers and stakeholders. Proponents argue that the bill is a necessary step toward protecting consumer privacy in an increasingly digital world, where personal data is often exploited without adequate oversight. Critics, however, express concerns about the potential burden on small businesses and the complexities of compliance with the new regulations.

The implications of this legislation are far-reaching. Economically, it could reshape how businesses approach data management and privacy, potentially leading to increased operational costs. Socially, it aims to empower consumers by giving them more control over their personal information. Politically, the bill positions Vermont as a leader in data privacy legislation, following in the footsteps of states like California.

As the bill progresses through the legislative process, experts anticipate further debates and possible amendments. The outcome of Senate Bill 71 could set a precedent for similar legislation in other states, influencing the national conversation on data privacy and consumer rights. The Vermont State Legislature will continue to review the bill, with stakeholders closely monitoring its developments and potential impacts on both consumers and businesses alike.