Vermont Senate committee hears mixed testimony on S71 (data privacy); witnesses back model tied to neighboring states, oppose private right of action

The Senate Committee on Institutions heard testimony March 14 on S71, an act relating to consumer data privacy and online surveillance, with witnesses urging lawmakers to adopt a law that mirrors neighboring states, set higher thresholds so small Vermont businesses and nonprofits are not swept in, and avoid creating a private right of action.

Robbie Adler, cofounder and chief strategy officer of Faraday, told the committee that Faraday — a 12-year-old Waterbury-based company with about 25 employees in Vermont — supports passage of state privacy law but urges Vermont to align with laws in Connecticut and New Hampshire rather than pursue novel provisions. "I do want to very clearly state I am in favor of Vermont passing a data privacy law," Adler said, adding that the company operates as a data processor and already spends significant legal and compliance resources to follow state laws where its clients operate.

Adler said a private right of action (PRA) would increase liability costs for businesses and insurers and would not clearly improve privacy protections for Vermonters. "A PRA would have immediate impacts on businesses,…