New bill prohibits unauthorized sharing of consumer biological and neural data

On March 18, 2025, Alabama lawmakers introduced House Bill 436, a significant piece of legislation aimed at protecting consumer privacy concerning biological and neural data. This bill seeks to establish strict guidelines for covered entities—organizations that handle sensitive biological or neural information—regarding the use and transfer of such data.

At the heart of House Bill 436 is the prohibition of transferring or disclosing a consumer's biological or neural data to third parties without explicit consent. This measure addresses growing concerns about privacy in an age where personal data is increasingly vulnerable to misuse. The bill also restricts covered entities from using this sensitive data for purposes beyond what is necessary to provide requested goods or services, effectively curbing potential exploitation for marketing or other unauthorized uses.

One of the key provisions of the bill mandates that consumers must be notified before their biological or neural data is transferred or used, granting them the power to limit or prevent such actions. This transparency is designed to empower consumers and enhance their control over personal information.

The bill has sparked discussions among lawmakers and advocacy groups, with supporters emphasizing the need for robust consumer protections in the digital age. Critics, however, have raised concerns about the potential burden on businesses and the implications for innovation in fields that rely on data analytics.

If passed, House Bill 436 would also empower the Consumer Interest Division of the Office of the Attorney General to enforce these regulations, with penalties of up to $3,000 for each violation. This enforcement mechanism underscores the seriousness of the bill's intent to safeguard consumer rights.

The implications of this legislation could be far-reaching, as it not only addresses privacy concerns but also sets a precedent for how biological and neural data is handled in Alabama. Experts suggest that if successful, this bill could inspire similar legislation in other states, reflecting a growing national conversation about data privacy and consumer rights.

As the bill moves through the legislative process, its fate will be closely watched by both advocates for consumer protection and those wary of regulatory overreach. The outcome could significantly shape the landscape of data privacy in Alabama and beyond, highlighting the ongoing tension between innovation and individual rights in the digital era.