Home Privacy Virginia’s Gov. Signs The Customer Data Protection Act Into Law

Virginia’s Gov. Signs The Customer Data Protection Act Into Law

SHARE:
Gov. Northam has signed the CCDPA into law, making Virginia the second state in the nation to pass a comprehensive privacy regulation after California.
Flag of Commonwealth of Virginia, USA. Vector Format

Gov. Ralph Northam signed the Customer Data Protection Act (CDPA) into law on Tuesday, making Virginia the second state in the nation to pass a comprehensive privacy regulation after California.

In a statement, David Marsden, the state senator who originally introduced the bill, called the move “a huge step forward.”

Not everyone agrees. The Electronic Frontier Foundation, a civil rights and privacy advocacy group, didn’t think the CDPA went far enough when it was still a bill and encouraged citizens to write to Northam and tell him so.

But Northam, who had previously expressed support for the bill and was expected to sign, clearly wasn’t swayed.

The CDPA will go into effect on Jan. 1 2023, which also happens to be the same day that the California Privacy Rights Act or CPRA is set to take effect. CPRA is a data privacy bill that passed as a ballot measure in November and serves as an amendment that bolsters the California Consumer Privacy Act (CCPA).

Virginia’s new data privacy law applies to anyone that conducts business in the state or that has products or services targeted at Virginia residents. It also includes businesses that process the personal data of 100,000 or more Virginia consumers annually, make 50% or more of their gross revenue from the sale of personal data and/or process the personal data of 25,000 or more Virginia residents annually.

There is no revenue threshold for applicability under CDPA like there is under CCPA, which covers businesses that have gross annual revenue of $25 million or more.

One aspect of CDPA that’s particularly interesting is that it’s an opt-in law, which means that a business needs to get clear, specific and informed consent before it can process someone’s personal data.

That language is reminiscent of the EU’s General Data Protection Regulation and sets a higher standard than the CCPA, which takes an opt out approach.

Also more like GDPR than CCPA, CDPA grants Virginia residents a bunch of new rights, including the right to request and receive personal data about themselves in an easy-to-understand, portable format; to correct inaccurate information about themselves; to delete personal data about themselves; and to opt out of the processing of their personal data at any time for targeted advertising or any kind of profiling.

By comparison, the CCPA only provides a right to know and a right to delete.

Also unlike CCPA, Virginia’s law does not include a private right of action, meaning that Virginia’s attorney general will be the sole enforcement authority of the law.

So, who’s next after Virginia? Take your pick.

More than 15 states have either introduced a data privacy and consumer protection bill or currently have one in committee, including Alabama, Florida, Illinois, Iowa, Kentucky, Minnesota, Mississippi, Nebraska, New Mexico, New York, North Dakota, Oklahoma, Pennsylvania, South Carolina, Utah, Washington state and Wisconsin.

Must Read

How AI Can Enhance Content Without Generating It

As much as consumers complain about AI-generated content, advertising experts say AI still has an important place in video creation and production, including for ads. But using AI in content without turning off consumers is a tricky dance.

How Tovala Banks On Subscriptions And Incrementality – But Not Ads – To Profit From Its Oven

Smart TVs, refrigerators and other home appliances may pester you with marketing, but at least the hardware is cheap. Another startup taking a different approach to the same theory is Tovala, which was founded in 2015 and combines a standalone countertop oven with a weekly meal kit subscription.

Shopify Wades Deeper Into Advertising, But Not Ad Tech

Shopify is slowly but surely making its way into the ads business. But the ecommerce leader maintains its laissez-faire approach to ad monetization.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Advertisers Say They Need More Data From Netflix

Netflix touts sharper targeting, but buyers say its black-box approach – especially the lack of usable IP data – is blunting measurement and quietly pushing performance-driven spend elsewhere.

Walmart Buys Vibe.co To Woo SMBs To Streaming

Walmart will buy Vibe.co, a self-serve video ad platform, in hopes of attracting more small and medium-sized advertisers to connected TV.

OpenAI's debut in Cannes

At Its First-Ever Cannes, OpenAI Says ‘We Are Clearly In The Advertising Business Now’

Bonjour, ChatGPT ads. OpenAI’s inaugural Cannes Lions appearance doubled as a coming‑out party for its baby ad business.