Senate Institutions hears split testimony on S.71 privacy bill over private suits, definitions and business burden

Montpelier — The Senate Institutions Committee on Tuesday, March 11, heard more than two hours of testimony on S.71, legislation that would set statewide rules for consumer data privacy, online surveillance and targeted advertising.

The attorney general’s office, privacy advocates and digital-ad watchdogs testified in favor of strong data-minimization rules and consumer remedies; business groups and the Vermont Chamber of Commerce urged a different approach — a regionally aligned bill (S.93), narrower definitions, and limiting private lawsuits to avoid what they said would be costly litigation and compliance burdens for small businesses.

The attorney general’s office told the committee the intersection of data privacy and consumer protection motivates its involvement. The office noted the state’s long-running Consumer Assistance Program (CAP) at the University of Vermont and the frequency of breach notifications: “At least every day, there is a data breach,” the attorney general’s representative said, adding that the office receives “600, 800 notifications a year, depending on the year.” The representative urged codifying data-minimization practices to limit unnecessary collection and described a role for private remedies tied to actual damages, not…