The Tennessee Information Protection Act (TIPA) defines a “consumer” as an individual who is a resident of Tennessee. It also defines a “business” as any entity that conducts business in Tennessee or produces or directs its activities toward Tennessee residents and meets certain applicability thresholds. These thresholds include processing personal data of 100,000 or more Tennessee consumers annually or controlling or processing personal data of 100,000 or more Tennessee consumers annually and deriving more than 50% of its gross revenue from selling personal data of Tennessee consumers or deriving more than 50% of its gross revenue from controlling or processing personal data of Tennessee consumers. The TIPA does not apply to governmental entities, financial institutions regulated by the Gramm-Leach-Bliley Act, or covered entities and business associates regulated by HIPAA. The act grants consumers rights such as the right to access, correct, delete, and opt-out of the sale of their personal data, as well as the right to opt-out of targeted advertising. Enforcement is primarily handled by the Tennessee Attorney General.

The Tennessee Information Protection Act (TIPA) grants consumers the right to opt out of the sale of their personal information. While the TIPA does not explicitly define “sale” in the same granular way as some other state privacy laws, its intent is to cover situations where a business transfers personal information to a third party for monetary or other valuable consideration. This includes situations where data is shared for targeted advertising purposes, which often involves an exchange of value. In the scenario provided, the Nashville-based marketing firm is transferring customer email addresses and purchase histories to an analytics company in exchange for detailed consumer behavior reports. These reports are valuable to the marketing firm as they inform future marketing strategies and can lead to increased sales. The transfer of personal information for these reports constitutes a “sale” under the general principles of data privacy laws like TIPA, as there is a clear exchange of valuable consideration. Therefore, the marketing firm must provide consumers with a clear notice and an opportunity to opt out of this practice. The core concept being tested is the broad interpretation of “sale” in the context of data privacy, particularly when personal information is exchanged for services or insights that benefit the business. This aligns with the proactive consumer protection aims of Tennessee’s privacy legislation, which seeks to give individuals control over how their data is used and shared, especially for commercial purposes.

Tennessee’s data privacy landscape is evolving, and understanding the nuances of its regulations, particularly in comparison to broader federal frameworks or other state laws, is crucial. While Tennessee does not have a comprehensive data privacy law analogous to the California Consumer Privacy Act (CCPA) or the Virginia Consumer Data Protection Act (VCDPA), it does have specific statutes that address certain types of data and data breaches. For instance, Tennessee Code Annotated § 47-18-2101 et seq., concerning data security and breach notification, mandates specific actions for businesses that own or license personal information of Tennessee residents. This statute requires reasonable security measures to protect personal information and outlines the procedures for notifying affected individuals in the event of a data breach. Unlike some other states that grant consumers specific rights regarding access, deletion, or opt-out of the sale of personal data, Tennessee’s current statutory framework primarily focuses on the security and breach notification obligations of businesses. Therefore, when evaluating a business’s compliance, the emphasis under Tennessee law is on the proactive measures taken to safeguard data and the prompt, appropriate response to a security incident. This contrasts with more expansive privacy rights granted to consumers in other jurisdictions, which often involve affirmative consent mechanisms or the ability to direct how their data is processed beyond mere security. The specific requirements for notification, including the content and timing, are detailed within the statute, emphasizing transparency and consumer protection in the aftermath of a breach.

The scenario describes a Tennessee-based company, “Appalachian Analytics,” that collects data from its customers, many of whom reside in Tennessee. The company intends to share this data with a third-party marketing firm located in California for targeted advertising purposes. The Tennessee Information Protection Act (TIPA) governs the collection, processing, and sharing of personal data for businesses operating in or targeting Tennessee consumers. TIPA mandates that consumers have the right to opt-out of the sale of their personal information. The question asks about the company’s obligation before sharing data with the California firm. TIPA requires that businesses provide clear notice of data collection and processing activities, including information about the sharing of personal data with third parties. Crucially, TIPA grants consumers the right to opt-out of the sale of their personal information. Therefore, Appalachian Analytics must provide its Tennessee customers with a mechanism to opt-out of this data sharing arrangement before it can proceed with transferring the data to the California marketing firm. This aligns with the consumer-centric privacy principles embedded within TIPA, emphasizing transparency and consumer control over personal data. The act does not mandate obtaining explicit consent for every data sharing instance if an opt-out mechanism is provided and respected. While data minimization and purpose limitation are important, the immediate and primary obligation concerning the sharing of data with a third party for marketing purposes, given the opt-out right, is to facilitate that opt-out.

The scenario involves a Tennessee-based company, “Appalachian Analytics,” that collects personal data from residents of Tennessee. The question centers on the company’s obligations under the Tennessee Privacy Act (TPA), which is modeled after the California Consumer Privacy Act (CCPA) but with specific Tennessee nuances. The TPA grants consumers rights regarding their personal data, including the right to know, delete, and opt-out of the sale of personal information. The core of the TPA’s applicability hinges on meeting certain thresholds related to revenue, the number of consumers whose personal information is processed, or the primary purpose of the business. For the TPA, a business is considered a “controller” if it alone, or jointly with others, determines the purposes and means of processing personal data and meets specific thresholds. These thresholds, as of recent legislative updates, generally include: 1) purchasing, selling, or sharing personal information of at least 100,000 Tennessee consumers or households, or 2) deriving 50% or more of its annual gross revenues from selling personal information or sharing personal information. The question asks about the *primary* basis for a Tennessee business to be subject to the TPA, focusing on the operational and revenue-based triggers. Given Appalachian Analytics’ business model of processing data for targeted advertising and analytics, and its substantial revenue derived from this activity, the most direct trigger for TPA applicability, irrespective of the number of consumers processed if the revenue threshold is met, is its significant reliance on selling or sharing personal information for revenue. This aligns with the TPA’s intent to regulate businesses that monetize consumer data. Therefore, the primary basis for applicability in this context is the substantial revenue derived from the sale or sharing of personal data.

The Tennessee Information Protection Act (TIPA) grants consumers the right to opt out of the sale of their personal information. For businesses classified as “controllers” under TIPA, this right is a core component of consumer data autonomy. The definition of “sale” under TIPA is broad, encompassing any exchange of personal information for monetary consideration, but importantly, it also includes exchanges for other valuable consideration. This means that even if no money changes hands, if personal information is exchanged for something of value, it can be considered a sale. For instance, sharing data with a third party in exchange for analytics services or targeted advertising capabilities would likely fall under this definition. Businesses must provide a clear and conspicuous link on their website to allow consumers to exercise this opt-out right. Failure to honor a valid opt-out request constitutes a violation of the Act. The focus is on the transfer of data for benefit, whether financial or otherwise, to the entity receiving the data, and the corresponding relinquishment of control by the consumer.

The Tennessee Information Protection Act (TIPA) defines a “consumer” as a natural person who is a resident of Tennessee. The law applies to persons that conduct business in Tennessee or produce or direct its activities toward Tennessee residents and that satisfy certain thresholds related to processing personal data. The thresholds for applicability are processing or engaging in the processing of personal data of at least 100,000 consumers, or processing or engaging in the processing of personal data of at least 25,000 consumers and deriving more than 50 percent of gross revenue from selling personal data or controlling and selling the personal data of at least 25,000 consumers. The question asks about the applicability of TIPA to an entity that processes data of 75,000 Tennessee residents. Since 75,000 is greater than 100,000, the first threshold is met, making the entity subject to TIPA, regardless of revenue derived from selling data. Therefore, the entity is subject to TIPA.

The Tennessee Information Protection Act (TIPA) grants consumers specific rights regarding their personal data. One of these rights is the right to opt-out of the sale of personal information. While TIPA does not define “sale” in a manner that exclusively limits it to monetary transactions, it broadly construes it to include exchanges for valuable consideration. However, the act also includes specific exemptions. A key exemption pertains to sharing data with service providers or contractors for the purpose of processing data on behalf of the controller, provided certain contractual safeguards are in place. Another exemption relates to sharing data with affiliates of the controller. The scenario involves a Tennessee-based company, “Volunteer Analytics,” which shares its customer data with a subsidiary, “Volunteer Insights,” located in Georgia. This sharing is for the purpose of developing new marketing analytics models. Since Volunteer Insights is an affiliate of Volunteer Analytics, this transfer falls under the affiliate exemption provided by TIPA. The TIPA’s affiliate exemption is designed to allow for internal data sharing within a corporate family without triggering the “sale” provisions, assuming no direct monetary consideration is exchanged for the data itself between the parent and subsidiary, and the sharing aligns with legitimate business purposes and is not an outright sale to a third party for their independent commercial gain. Therefore, Volunteer Analytics’ action is permissible under the TIPA’s affiliate exemption.

Tennessee’s data privacy landscape, while evolving, does not currently mandate a specific, universally applicable “right to data portability” in the same vein as the European Union’s GDPR or California’s CCPA/CPRA. Instead, the focus in Tennessee, particularly with the Tennessee Information Protection Act (TIPA), centers on consumer rights related to access, deletion, and opt-outs of the sale of personal information. While TIPA grants consumers the right to obtain and transmit their personal data, this is generally interpreted within the context of specific data processing activities and not as a broad, independent right to request a copy of all personal data held by a controller in a readily usable format for transfer to another controller, without a specific request for access. The TIPA’s provisions regarding data access allow consumers to request confirmation of whether a controller is processing their personal data and to access that data. However, the concept of data portability, as a distinct right to receive data in a structured, commonly used, machine-readable format for transmission to another controller, is not explicitly enumerated as a standalone consumer right under TIPA. Therefore, while a consumer can request access to their data, the proactive provision of such data in a portable format for the purpose of transferring it to another entity, without a specific request under the access provisions, is not a mandated obligation under TIPA. The right to opt-out of the sale of personal information is also a key component of TIPA, but this is separate from data portability.

The Tennessee Information Protection Act (TIPA) outlines specific requirements for businesses that collect and process personal information of Tennessee residents. A key aspect of TIPA, similar to other comprehensive state privacy laws, involves the rights granted to consumers. One such right is the right to opt-out of the sale of personal information. The definition of “sale” under TIPA is crucial for understanding the scope of this right. TIPA defines “sale” broadly to include the exchange of personal information for monetary or other valuable consideration. This consideration does not need to be direct payment; it can encompass various forms of value. For instance, if a business shares customer data with a third party in exchange for market insights, analytics, or even enhanced advertising capabilities that benefit the business, this could be construed as a sale under the act. The act also specifies exceptions to this definition, such as sharing information with service providers who process data on behalf of the business and are contractually obligated to use the data only for that purpose. Therefore, understanding what constitutes “valuable consideration” is paramount for businesses to comply with consumer opt-out requests concerning the sharing of their personal information. The core principle is the transfer of data for something of value beyond mere operational necessity.

The Tennessee Information Protection Act (TIPA) defines a “business” as any entity that conducts business in Tennessee or produces products or services targeted to residents of Tennessee and that meets certain thresholds related to the amount of personal data processed or controlled. Specifically, a business is considered a controller or processor if, during the preceding calendar year, it controlled or processed the personal data of at least 100,000 Tennessee consumers or controlled or processed the personal data of at least 25,000 Tennessee consumers and derived more than 50% of its gross revenue from selling personal data. The scenario describes a company that processes the personal data of 75,000 Tennessee consumers and derives 60% of its gross revenue from selling personal data. While the number of consumers processed (75,000) exceeds the 100,000 threshold, it does not meet it. However, the second prong of the definition is met because the company processes the data of 75,000 consumers (which is more than 25,000) and derives more than 50% of its gross revenue from selling personal data. Therefore, this company qualifies as a “business” under TIPA.

The Tennessee Information Protection Act (TIPA) establishes specific requirements for businesses that collect personal information from Tennessee residents. A key aspect of TIPA, similar to other comprehensive state privacy laws, involves the rights granted to consumers regarding their data. One such right is the ability to opt-out of the sale of personal information. For the purpose of TIPA, “sale” is defined broadly to include the exchange of personal information for monetary or other valuable consideration. This definition is crucial because it encompasses more than just direct monetary transactions. When a business engages in activities that could be construed as selling data, even if it’s for aggregated insights or targeted advertising services where consideration is exchanged, it falls under the purview of this opt-out right. Therefore, a business must provide a clear and conspicuous link on its website that enables consumers to opt-out of the sale of their personal information. This link should be accessible and understandable, allowing consumers to effectively exercise their right to control how their data is shared. The act emphasizes transparency and consumer control, mandating specific disclosures about data processing activities and the rights individuals possess. The requirement for a distinct opt-out link is a direct manifestation of this consumer-centric approach, ensuring that individuals can actively prevent their data from being sold.

The Tennessee Information Protection Act (TIPA) establishes specific requirements for businesses that conduct business in Tennessee and collect personal information from Tennessee consumers. A key aspect of TIPA, similar to other comprehensive state privacy laws, is the definition of a “controller” and the obligations that flow from that designation. The law defines a controller as the natural person or legal entity alone or jointly with others that determines the purposes and means of processing personal information. This is a fundamental concept in data privacy law, as the controller bears the primary responsibility for ensuring compliance with the law’s provisions, including data subject rights, security requirements, and data processing agreements. The definition is broad enough to encompass entities that make decisions about why and how personal data is processed, regardless of whether they physically handle the data themselves. For instance, a company that contracts with a third-party vendor to process customer data for marketing purposes would still be considered the controller if it dictates the types of data processed and the objectives of that processing. Understanding this distinction is crucial for any entity operating within Tennessee and processing the personal information of its residents, as it dictates the scope of their legal duties and potential liabilities under TIPA.

The Tennessee Information Protection Act (TIPA) defines a “consumer” as a natural person who is a resident of Tennessee. The law applies to persons that conduct business in Tennessee or produce or direct its activities toward Tennessee consumers and that satisfy certain thresholds. These thresholds relate to the amount of personal data controlled or processed annually. Specifically, TIPA applies to a controller or processor that, during the preceding calendar year, controlled or processed personal data of at least 100,000 Tennessee consumers, or controlled or processed personal data of at least 25,000 Tennessee consumers and derived more than 50% of its gross revenue from selling personal data. The scenario describes a company that operates a website accessible to Tennessee residents and processes personal data of 150,000 Tennessee residents annually. This number clearly exceeds the 100,000 consumer threshold, triggering the applicability of TIPA. Therefore, the company is subject to the provisions of the Tennessee Information Protection Act.

The scenario involves a Tennessee-based healthcare provider, “Vitality Medical Group,” which collects sensitive health information from its patients. The question probes the specific notification requirements under Tennessee law when a data breach occurs. Tennessee’s data breach notification law, codified in Tennessee Code Annotated §47-25-1301 et seq., mandates that any entity conducting business in Tennessee that owns or licenses computerized personal information of Tennessee residents must notify the affected individuals in the most expedient time possible and without unreasonable delay, if there has been a breach of the security of the system. The law specifies that notification must occur if the unauthorized acquisition or access is likely to cause a risk of identity theft or other harm to the individual. The notification must include a description of the incident, the type of information disclosed, the steps the entity is taking to address the breach, and advice on how the individual can protect themselves. While federal laws like HIPAA also apply to healthcare providers, this question is specifically focused on the state-level requirements that supplement federal regulations. The critical element here is understanding the trigger for notification and the timing, which is “without unreasonable delay.” Other states may have different notification thresholds or timelines, making a Tennessee-specific understanding crucial. The law does not mandate a specific number of days for notification, but rather emphasizes promptness to mitigate harm. The scope of information protected under Tennessee law includes not only financial information but also health information and other personally identifiable information.

The Tennessee Information Protection Act (TIPA) defines a “consumer” as an individual who is a resident of Tennessee. The Act’s provisions regarding data subject rights, such as the right to access, delete, or opt-out of the sale of personal information, apply to personal data collected from these consumers. The threshold for applicability of TIPA to a controller or processor is based on the volume of personal data processed and the revenue generated from selling personal data. Specifically, a controller or processor is subject to TIPA if, during the preceding calendar year, they controlled or processed the personal data of at least 100,000 Tennessee consumers, or controlled or processed the personal data of at least 25,000 Tennessee consumers and derived more than 25% of their gross annual revenue from selling personal data. In this scenario, the company processes the personal data of 120,000 Tennessee residents, which exceeds the 100,000 consumer threshold. Therefore, the company is subject to the TIPA, and its data processing activities must comply with the Act’s requirements concerning Tennessee consumers. The calculation is straightforward: 120,000 (processed consumers) > 100,000 (TIPA threshold). The second part of the threshold (25,000 consumers and 25% revenue) is not met and therefore not relevant for determining applicability in this specific case, as the first threshold is already satisfied.

The Tennessee Information Protection Act (TIPA) establishes specific requirements for businesses that conduct business in Tennessee and collect or process personal information of Tennessee residents. A key aspect of TIPA, similar to other comprehensive state privacy laws, is the definition of a “controller” and the obligations associated with that role. The law defines a controller as the natural person or legal entity that, alone or jointly with others, determines the purposes and means of processing personal information. This role carries significant responsibilities, including implementing reasonable security measures, responding to consumer rights requests, and conducting data protection assessments for high-risk processing activities. The question tests the understanding of who qualifies as a controller under TIPA and the implications of that designation, specifically focusing on the decision-making authority regarding data processing. The scenario presented involves an entity that collects data from Tennessee residents and makes independent decisions about how that data is used for its own business purposes, which directly aligns with the TIPA definition of a controller. The other options describe entities that might be involved in data processing but do not hold the primary decision-making authority, such as a processor acting on behalf of a controller, an entity merely storing data without processing it for its own purposes, or an entity that is not subject to Tennessee jurisdiction. Therefore, the entity that determines the purposes and means of processing personal information of Tennessee residents for its own business operations is the controller.

The Tennessee Information Protection Act (TIPA) defines a “consumer” as a natural person who is a resident of Tennessee. The act applies to persons that conduct business in Tennessee or produce or direct its activities to Tennessee consumers and that meet certain thresholds. These thresholds include controlling or processing personal data of at least 100,000 Tennessee consumers or controlling or processing personal data of at least 25,000 Tennessee consumers and deriving more than 50% of gross revenue from selling personal data. The question asks about the applicability of TIPA to a company based in Georgia that targets Tennessee residents with its online services. Since the company targets Tennessee consumers, even if it doesn’t have a physical presence in Tennessee, the act’s provisions regarding targeting residents would apply. The key is the direction of activities towards Tennessee consumers, which is explicitly stated in the scenario. Therefore, the company is subject to TIPA if it meets the processing thresholds, regardless of its physical location. The explanation focuses on the definition of a consumer and the territorial scope of TIPA as outlined in the statute, emphasizing that targeting residents is a primary trigger for applicability.

Tennessee’s data privacy landscape, while evolving, does not currently mandate a specific breach notification period measured in days for all types of data breaches. Instead, the Tennessee Information Protection Act (TIPA) focuses on the reasonableness of the notification process and the timeframe for providing notice to affected individuals. The law requires that a breach of security be disclosed without unreasonable delay and consistent with the legitimate needs of law enforcement. This standard emphasizes promptness and practicality rather than a fixed number of days that might be stipulated in other state laws. For instance, some states might have a 30-day or 60-day requirement. However, Tennessee’s approach under TIPA, effective July 1, 2023, aligns with a more flexible, risk-based standard, requiring notification “without unreasonable delay.” The specific details of what constitutes “unreasonable delay” would be assessed on a case-by-case basis, considering factors such as the nature of the data compromised, the potential harm to individuals, and the steps taken by the entity to mitigate the breach. It is crucial for businesses operating in Tennessee to establish robust data breach response plans that prioritize swift and effective notification to comply with the spirit and letter of the law, even in the absence of a universally mandated daily countdown.

Tennessee law, particularly the Tennessee Information Protection Act (TIPA), outlines specific requirements for data security. When a breach of personal information occurs, the notification obligations are triggered by the risk of harm to consumers. The TIPA defines personal information broadly and establishes a tiered approach to assessing risk. A covered entity must conduct a reasonable investigation to determine if a breach occurred and if it poses a risk of harm. If a risk of harm exists, notification is required. The law specifies that the notification must be provided without unreasonable delay. The act does not mandate a specific number of days for notification but emphasizes promptness. The definition of a “breach of the security of the system” under TIPA encompasses unauthorized acquisition of computerized personal information. The assessment of “risk of harm” is a crucial factor in determining the necessity of notification. This assessment considers the nature of the personal information, the unauthorized acquisition, and the subsequent use or potential use of the information. The law also provides for exceptions to notification, such as when the information is encrypted or otherwise rendered unreadable. However, in the absence of such exceptions, and upon determining a risk of harm, the covered entity must proceed with notification to affected Tennessee residents and, in certain circumstances, to the Tennessee Attorney General. The core principle is to inform individuals when their sensitive data has been compromised in a manner that could lead to adverse consequences.

The Tennessee Information Protection Act (TIPA) governs the collection and processing of personal data. When a data breach occurs that is likely to cause substantial harm to consumers, the TIPA mandates notification. The law outlines specific requirements for the content and timing of these notifications. A key aspect of the TIPA, similar to many other US state privacy laws, is the definition of what constitutes “personal information” and what constitutes a “data breach.” The Act requires controllers to implement and maintain reasonable security procedures and practices. In this scenario, the unauthorized access to customer financial account numbers and security codes, without proper authorization, directly impacts sensitive personal information. The law focuses on the *likelihood* of harm, not absolute certainty, to trigger notification obligations. Therefore, a controller must assess the potential for harm arising from the exposure of such data. The TIPA’s provisions regarding breach notification are triggered by the potential for substantial harm to consumers. This includes situations where sensitive personal information, like financial account numbers and access credentials, is compromised. The law requires controllers to act promptly to investigate and, if necessary, notify affected individuals and relevant authorities. The specific timeframe for notification is generally within 60 days of discovery, though this can be extended under certain circumstances, and the notification must include specific details about the breach and steps consumers can take. The core principle is to safeguard consumer data and provide timely information when that safeguard is breached.

The Tennessee Information Protection Act (TIPA) grants consumers rights regarding their personal information. One of these rights is the right to opt-out of the sale of personal information. The definition of “sale” under TIPA is broad and includes any exchange of personal information for monetary or other valuable consideration. This means that even if a company does not receive money directly, if they provide personal information to another entity in exchange for a service or benefit that has value, it can be considered a sale. For example, sharing data with a third-party analytics provider in exchange for insights into customer behavior, where those insights have a tangible commercial value to the company, would likely fall under the definition of a sale. The law requires controllers to provide a clear and conspicuous notice of the right to opt-out and a mechanism for consumers to exercise this right. This mechanism must be easily accessible and understandable. The law does not, however, mandate a specific timeframe for a controller to respond to an opt-out request, but rather implies a reasonable period to effectuate the change in processing. The obligation to honor an opt-out request applies to both the controller and any processors acting on their behalf. The TIPA’s scope is limited to businesses that conduct business in Tennessee or produce products or services targeted to residents of Tennessee and meet certain thresholds related to annual revenue and the amount of personal data processed.

The Tennessee Information Protection Act (TIPA) grants consumers the right to opt out of the sale of personal information. For businesses subject to TIPA, a sale is defined broadly to include the exchange of personal information for monetary or other valuable consideration. However, TIPA provides specific exceptions to this definition. One crucial exception pertains to the disclosure of personal information to a processor that processes the personal information on the controller’s behalf, provided that the processor agrees not to sell the personal information. Another exception covers the disclosure of personal information to a third party for purposes of providing a product or service requested by the consumer. Furthermore, TIPA exempts disclosures made to entities that are affiliated with the disclosing entity. The disclosure of personal information to a third party for the purpose of providing a product or service requested by the consumer is a key carve-out. This exception ensures that routine business operations, such as sharing data with a shipping company to deliver an order placed by a consumer, are not considered a sale under the act. Therefore, when a Tennessee resident orders a product from an online retailer based in Tennessee and that retailer shares the resident’s shipping address with a third-party delivery service to fulfill the order, this action is generally not considered a sale of personal information under TIPA because it falls under the exception for providing a product or service requested by the consumer.

The Tennessee Privacy Act (TPA) grants consumers the right to opt-out of the sale of their personal information. While the TPA does not define “sale” in a manner that necessitates a monetary transaction, it broadly interprets it to include any exchange of personal information for monetary or other valuable consideration. In this scenario, “Innovate Solutions,” a Tennessee-based marketing firm, shares a customer list with “Synergy Marketing,” a competitor, in exchange for access to Synergy’s proprietary customer segmentation algorithms. Although no direct payment is exchanged, the access to valuable algorithms constitutes “other valuable consideration.” Therefore, this constitutes a sale of personal information under the TPA. The TPA requires businesses to provide a clear and conspicuous “Do Not Sell My Personal Information” link on their website and to honor consumer opt-out requests. The absence of this link and the failure to honor any potential opt-out requests would place Innovate Solutions in violation of the TPA’s provisions regarding the sale of personal information. This aligns with the TPA’s intent to give consumers control over how their data is shared, even in non-monetary transactions that provide a tangible benefit to the business processing the data.

The Tennessee Information Protection Act (TIPA) outlines specific requirements for businesses that process personal data of Tennessee residents. A key aspect of TIPA, similar to other comprehensive privacy laws like the GDPR or CCPA, is the concept of a “data protection assessment.” This assessment is a systematic review of the risks associated with processing personal data, particularly for activities that involve profiling or automated decision-making, or processing sensitive personal information. The law mandates that such assessments be conducted before engaging in high-risk processing activities. The purpose is to identify and mitigate potential privacy harms to consumers. The assessment should consider the nature, scope, context, and purposes of the processing, as well as the rights and freedoms of the consumers whose data is being processed. It should also evaluate the potential impact on consumers and the measures implemented to address those risks, such as data minimization, security safeguards, and consumer rights management. The TIPA does not specify a precise numerical threshold for the number of consumers whose data must be processed to trigger the requirement for a data protection assessment, but rather focuses on the nature and risk of the processing itself. Therefore, a company processing the data of 10,000 Tennessee residents but engaging in low-risk activities would not necessarily require an assessment, whereas a company processing the data of 1,000 residents for high-risk profiling might. The focus is on the *risk* presented by the processing, not solely on the volume of data.

The Tennessee Information Protection Act (TIPA) defines a “consumer” as a natural person who is a resident of Tennessee. The act applies to persons that conduct business in Tennessee or produce or direct its activities toward Tennessee consumers and that meet certain thresholds. These thresholds include controlling or processing personal data of at least 100,000 Tennessee consumers, or controlling or processing personal data of at least 25,000 Tennessee consumers and deriving more than 50% of gross revenue from selling personal data. The question asks about the threshold for a business that *only* controls or processes personal data, without deriving revenue from selling it. Therefore, the relevant threshold is controlling or processing the personal data of at least 100,000 Tennessee consumers. This distinction is crucial for understanding the scope of TIPA’s applicability, as it differentiates between businesses based on the volume of data they handle and their revenue models. Understanding these thresholds is fundamental for any entity operating within Tennessee or targeting its residents to ensure compliance with data protection obligations.

The Tennessee Information Protection Act (TIPA) defines a “business” as any entity that conducts business in Tennessee or produces products or services targeted to residents of Tennessee and that meets certain thresholds. These thresholds are based on the amount of personal data processed or controlled. Specifically, a business is considered a controller if, during the preceding calendar year, it controlled or processed the personal data of at least 100,000 Tennessee consumers, or if it controlled or processed the personal data of at least 25,000 Tennessee consumers and derived more than 50% of its gross revenue from selling personal data of Tennessee consumers. This threshold is crucial for determining applicability of the TIPA. The scenario describes “Artisan Apparel,” a Tennessee-based company that sells handcrafted clothing. They process the personal data of 75,000 Tennessee consumers and derive 30% of their gross revenue from selling personal data. Since Artisan Apparel processes the data of fewer than 100,000 Tennessee consumers and does not derive more than 50% of its gross revenue from selling personal data, it does not meet either of the primary thresholds to be considered a “controller” under the TIPA. Therefore, the TIPA would not apply to Artisan Apparel in this specific instance.

Tennessee’s data privacy landscape, particularly concerning consumer rights and business obligations, is evolving. While Tennessee does not have a comprehensive data privacy law akin to California’s CCPA/CPRA or Virginia’s CDPA, it does have specific statutes that address certain aspects of data protection and privacy. For instance, Tennessee Code Annotated § 47-18-2101 et seq. addresses data breaches, requiring notification to affected individuals and the Attorney General under specific circumstances. This statute defines “personal information” broadly and outlines the procedures for responding to a breach. The notification requirement is triggered when a person or business that owns or licenses computerized data containing personal information of a Tennessee resident experiences a security breach. The statute mandates that the notification be made without unreasonable delay and that it include specific details about the breach, the type of information compromised, and steps individuals can take to protect themselves. Failure to comply can result in enforcement actions by the Tennessee Attorney General. Understanding the scope of “personal information” and the specific triggers for notification are crucial for businesses operating in Tennessee. The law is designed to empower consumers by ensuring they are informed about potential misuse of their data following a security incident.

The Tennessee Personal Information Protection Act (TPIPPA), codified at Tennessee Code Annotated §47-18-2101 et seq., outlines specific requirements for businesses handling the personal information of Tennessee residents. A key aspect of this legislation, and many similar state privacy laws, involves the definition of what constitutes a “data breach” and the subsequent notification obligations. A data breach, under TPIPPA, is generally understood as the unauthorized acquisition of computerized personal information that reasonably poses a risk of harm to consumers. This definition is crucial because it triggers the legal duty to notify affected individuals and, in some cases, the Tennessee Attorney General. The act further specifies that the notification must be provided without unreasonable delay, consistent with the legitimate needs of law enforcement or the security of the state. The notification should include specific details about the breach, the type of information compromised, and steps individuals can take to protect themselves. The threshold for harm is a critical factor in determining if a breach has occurred and if notification is mandated, distinguishing it from mere unauthorized access without a subsequent risk.

The Tennessee Information Protection Act (TIPA) establishes specific requirements for businesses that conduct business in Tennessee and process personal information of Tennessee residents. A key aspect of TIPA, and many similar state privacy laws, is the definition of a “controller” and “processor,” and the respective obligations placed upon them. A controller is an entity that determines the purposes and means of processing personal information, while a processor acts on behalf of the controller. In the scenario presented, “Innovate Solutions Inc.” is the entity that determines *why* and *how* the customer data is collected and used for targeted advertising and service improvement. “DataStream Analytics LLC” is engaged by Innovate Solutions Inc. to perform specific data processing activities, such as analyzing the data for trends and generating reports. DataStream Analytics LLC does not independently decide the purpose or means of processing; it acts under the direction of Innovate Solutions Inc. Therefore, Innovate Solutions Inc. is the controller, and DataStream Analytics LLC is the processor. This distinction is crucial for allocating responsibilities under TIPA, including data security, consumer rights management, and breach notification. For instance, while both may have obligations, the primary responsibility for ensuring lawful processing and responding to consumer requests often falls on the controller. The scenario clearly outlines DataStream Analytics LLC performing services for Innovate Solutions Inc., making the former a processor.