Data Privacy, Regulatory Compliance
The Data Privacy Landscape in 2025: A Wave of New State Laws
Written By
This year the U.S. is set to experience a significant shift in how data privacy is regulated at a state level. While the Federal Government has made progress in this area through the Privacy Act of 1974, E-Government Act of 2002, FTC, Executive Orders, etc. there are no overarching federal privacy laws in place, so states are now taking the lead on regulation. The new policies will require businesses to evolve the way they handle consumer data, with a greater obligation for transparency and accountability.
It may be especially difficult for organizations that conduct business across multiple states. For example, if an organization conducts business in four of the states enacting new regulation, that is four sets of unique laws to now ensure compliance with. In this blog post we’ll discuss the common themes among these new regulations, and how organizations can take actionable steps to prepare for compliance.
State Data Privacy Laws Taking Effect in 2025
Each of the state privacy laws launching throughout the year cover a broad range of data types and industries. In contrast, federal privacy laws tend to be specific to certain industry sectors. For example, HIPAA in healthcare. With the following eight state privacy laws we see the rights of consumers expanded, while new regulations are imposed on businesses:
• Delaware Personal Data Privacy Act (DPDPA) – January 1, 2025
• Iowa Consumer Data Protection Act (ICDPA) – January 1, 2025
• Nebraska Data Privacy Act (NDPA) – January 1, 2025
• New Hampshire Consumer Expectation of Privacy (NHCEP) – January 1, 2025
• New Jersey Data Privacy Act (NJDPA) – January 15, 2025
• Tennessee Information Protection Act (TIPA) – July 1, 2025
• Minnesota Consumer Data Privacy Act (MCDPA) – July 31, 2025
• Maryland Online Data Privacy Act (MODPA) – October 1, 2025
Among these new 2025 state privacy laws there are many parallels:
Enhanced consumer rights, providing consumers the right to access, delete and/or obtain copies of their personal data.
Data protection requirements, necessitate that businesses implement rigorous data protection assessments for high-risk activities that pose a threat to consumers.
Focus on Notice requirements, businesses to maintain privacy notices and establish contracts with third-party processors.
Increased transparency, regarding clear, accessible, detailed privacy notices that review data collection, data usage and data sharing practices.
Emphasis on opt-outs, to provide accessible, user-friendly mechanisms for consumers to be able to opt-out.
Preparing for Compliance
In the face of these new state regulations, here are a few ways in which our team of experts at Capsicum can help strengthen data handling practices to ensure compliance:
Gap Analysis and Risk Assessment: Our team can conduct a thorough assessment of an organization's current data privacy practices, identifying gaps between existing processes and requirements of the new state laws. This includes examining data collection, storage, use, and sharing practices.
Data Mapping and Inventory: Get a big picture view of company data by mapping data flows, identifying where personal data resides, where its collected, stored and processed. This practice helps to ensure transparency and readiness for compliance.
Employee Training: Create education programs for staff on new privacy requirements, protocol and procedures.
Ongoing Compliance Monitoring: Provide expertise to monitor changes in data privacy laws and help organizations adapt business operations accordingly. Monitor for updates and changes to existing laws, such as Texas's upcoming 2025 requirement to respond to universal opt-out mechanisms.
2025 is primed to be an interesting time in data privacy. Established state privacy laws, such as those in California and Colorado, are planning to integrate AI technologies into their requirements, an area the federal privacy laws have yet to address. Emerging technologies, a patchwork of state laws, and increased federal scrutiny, highlights the need for a nimble approach to data privacy.
Prioritizing privacy compliance can also help organizations better position themselves to mitigate any deleterious effects on business operations caused by not meeting requirements. At the forefront of this evolution our experts at Capsicum Group remain dedicated to helping our clients navigate this complex legal, regulatory and cybersecurity environment.