New data protection bill limits personal data processing and requires consumer consent

Connecticut's Senate Bill 1356, introduced on April 9, 2025, aims to enhance consumer privacy protections by imposing stricter regulations on the collection and processing of personal data by businesses. The bill seeks to address growing concerns over data privacy and security, particularly in light of increasing incidents of data breaches and misuse of personal information.

Key provisions of the bill include requirements for data controllers to limit the collection of personal data to what is necessary for providing requested services, establish robust security practices to protect data, and obtain explicit consent from consumers before processing sensitive data. Additionally, the bill mandates that consumers have an easy mechanism to revoke consent for data processing, with a requirement for businesses to cease processing data within fifteen days of such a request.

Notably, the bill includes specific protections for minors, prohibiting the processing of personal data for targeted advertising without parental consent for those under sixteen years of age. This aspect has sparked debates among lawmakers and industry representatives, with some arguing that it may impose undue burdens on businesses, while others emphasize the importance of safeguarding children's privacy.

The economic implications of Senate Bill 1356 could be significant, as businesses may need to invest in compliance measures to meet the new requirements. This could lead to increased operational costs, particularly for smaller companies. However, proponents argue that stronger privacy protections could enhance consumer trust and ultimately benefit businesses in the long run.

As the bill progresses through the legislative process, it is expected to face scrutiny and potential amendments. Experts suggest that its passage could set a precedent for similar legislation in other states, reflecting a broader national trend toward stricter data privacy regulations. The outcome of Senate Bill 1356 could have lasting effects on how personal data is handled in Connecticut and beyond, shaping the future landscape of consumer privacy rights.