Vermont’s data privacy landscape, while not as comprehensive as some other states, establishes specific obligations for businesses handling consumer data. The Vermont Consumer Protection Act (VCPA), specifically its provisions concerning deceptive trade practices related to personal information, is a key area of focus. A crucial element of the VCPA is the requirement for entities to implement and maintain reasonable security measures to protect personal information from unauthorized access or acquisition. The law does not mandate specific encryption standards but emphasizes a risk-based approach to security. When a breach occurs, the focus shifts to notification requirements. Vermont law requires notification to affected individuals and, in some cases, to the Attorney General’s office, without unreasonable delay. The definition of “personal information” under Vermont law typically includes information that can be used to identify an individual, such as a name combined with a Social Security number or driver’s license number. The VCPA’s enforcement mechanism relies on the Attorney General, who can seek injunctions and civil penalties. Understanding the scope of “personal information” and the standard of “reasonable security” are paramount for compliance. The absence of a private right of action under the VCPA means that enforcement is primarily governmental. The proactive implementation of security measures and a well-defined incident response plan are critical for any entity collecting or processing Vermont consumer data.

Vermont’s data privacy landscape, while not as comprehensive as some other states, establishes specific requirements for businesses handling personal information of its residents. The Vermont Attorney General’s office is the primary enforcer of these laws. A key aspect of Vermont law, particularly the Vermont Data Breach Notice Act of 2018, focuses on the notification process following a data breach. This act mandates that any person or business that owns or licenses computerized personal information of Vermont residents must notify affected residents without unreasonable delay if there is a breach of the security of the system. The notification must be in the most expedient time possible and without unreasonable delay, consistent with the legitimate needs of law enforcement. The notification must also inform individuals of the incident, the type of information that was compromised, and steps they can take to protect themselves. Importantly, Vermont law does not create a private right of action for individuals to sue for violations of the data breach notification requirements; enforcement is solely through the Attorney General. This distinction is crucial when considering the legal recourse available to consumers in Vermont.

The Vermont data privacy law, specifically the Vermont Consumer Protection Act (VCPA) as amended, focuses on the collection and dissemination of personal information. While it does not mandate a specific data breach notification procedure like some other states, it does require businesses to implement and maintain reasonable security measures to protect personal information against unauthorized access or acquisition. The VCPA, in its current form, does not establish a private right of action for data breaches or privacy violations. Instead, enforcement is primarily handled by the Vermont Attorney General’s office. Therefore, a consumer directly suing a business for a data breach under the VCPA, seeking damages and injunctive relief based on a failure to implement reasonable security measures, would not have a viable cause of action under the current statutory framework. The focus is on the Attorney General’s enforcement powers and the prohibition of unfair or deceptive acts or practices, which would include a failure to protect data if it constitutes such a practice.

No calculation is required for this question. This question assesses understanding of Vermont’s approach to data privacy, specifically concerning the applicability of its law to out-of-state businesses and the definition of “consumer” within its scope. Vermont’s Consumer Protection Act, particularly as it pertains to data privacy, focuses on the conduct of businesses that target or direct their activities toward Vermont residents. The key is whether a business’s practices affect Vermont consumers, regardless of the business’s physical location. Therefore, a company based in New Hampshire that offers services to Vermont residents and collects their personal information would be subject to Vermont’s privacy regulations. The definition of “consumer” in this context typically includes any person who is a resident of Vermont. The law’s intent is to protect Vermont residents’ privacy rights when their data is handled by businesses, even if those businesses operate elsewhere. The emphasis is on the impact on Vermont residents, not the location of the data processor. This aligns with a protective stance on consumer data privacy, ensuring that Vermont residents receive the same level of protection whether the business is within or outside the state.

The Vermont Data Privacy Act (VDPA) establishes specific requirements for businesses that collect, process, and share personal information of Vermont residents. A key aspect of the VDPA, similar to other comprehensive state privacy laws like the California Consumer Privacy Act (CCPA) as amended by the California Privacy Rights Act (CPRA) and the Virginia Consumer Data Protection Act (VCDPA), involves the rights afforded to consumers regarding their personal data. These rights typically include the right to access, delete, and opt-out of the sale or sharing of personal information. When a business receives a verifiable consumer request, it must respond within a specified timeframe, generally 45 days, with a possible extension. The VDPA emphasizes transparency and consumer control. The core of the question lies in understanding the process of responding to a consumer’s request to delete personal information, specifically the circumstances under which a business may deny such a request. The VDPA, like many privacy statutes, carves out specific exceptions to the deletion right. These exceptions are designed to balance consumer privacy with legitimate business needs and legal obligations. Common exceptions include retaining data necessary to complete a transaction, providing a requested good or service, complying with legal obligations, detecting and resolving security incidents, or exercising free speech rights. The question focuses on a scenario where a business has a legal obligation to retain certain data, thus providing a lawful basis for denying a deletion request for that specific data, while still being obligated to delete other data not covered by the exception. Therefore, the business must acknowledge the request, inform the consumer about the specific data it cannot delete and the reasons for retention, and proceed with deleting the data that does not fall under an exception. The calculation of “45 days” is a standard response timeframe under many privacy laws, including the VDPA, and serves as a reference point for timely action.

The Vermont Information Privacy Act (VIPA) mandates specific requirements for businesses that collect and process personal information of Vermont residents. When a business engages in data brokering activities, VIPA imposes additional obligations beyond general data processing. A data broker, as defined by VIPA, is a business that knowingly collects and sells or licenses to third parties the personal information of consumers with whom it has no direct relationship. VIPA requires data brokers to register with the Vermont Attorney General and to provide consumers with specific rights, including the right to opt-out of the sale of their personal information. Furthermore, VIPA mandates that data brokers must implement reasonable security measures to protect personal information and maintain records of their data collection and sale activities. The law also includes provisions for data breach notification. For a data broker to cease its obligations under VIPA concerning a specific consumer’s data, it must receive an explicit opt-out request from that consumer and honor it. This involves stopping the sale or licensing of that consumer’s personal information. While Vermont does not have a specific statutory provision that automatically terminates a data broker’s obligations for a consumer’s data after a certain period of inactivity or a specific type of request other than an opt-out, the core obligation is to respond to and implement consumer requests, particularly opt-outs from data sale. Therefore, the most direct and legally sound method for a consumer to ensure their data is no longer being sold by a data broker under VIPA is through an opt-out request.

The Vermont Data Privacy Act (VDPA) requires a data broker to register with the Vermont Attorney General and pay an annual fee. A key component of this registration is the submission of a report detailing the categories of personal information collected, the categories of third parties with whom personal information is shared, and the business purpose for sharing such information. The VDPA specifically defines a data broker as a business that knowingly collects, sells, or shares the personal information of consumers with third parties for monetary or other valuable consideration, and that targets Vermont consumers or collects personal information of Vermont consumers. The act mandates that data brokers must provide consumers with a clear and conspicuous notice of their data collection and selling practices, and offer mechanisms for consumers to opt-out of the sale of their personal information. Furthermore, data brokers must maintain reasonable security measures to protect personal information. The reporting and registration requirements are central to the VDPA’s aim of increasing transparency and accountability in the data brokerage industry, particularly concerning Vermont residents. The specific threshold for registration is based on the business’s engagement in the aforementioned activities, irrespective of the volume of data processed, as long as it meets the definition of a data broker and targets or collects from Vermont consumers.

The Vermont Data Privacy Act (VDPA) grants consumers rights regarding their personal information. One of these rights is the right to opt-out of the sale of personal data. The VDPA defines “sale” broadly, encompassing any exchange of personal data for monetary or other valuable consideration. However, certain disclosures are excluded from this definition. These exclusions are crucial for understanding the scope of the opt-out right. Specifically, the VDPA excludes disclosures made to service providers for the purpose of providing services to the controller, disclosures made to affiliates of the controller, disclosures made to a third party for purposes consistent with the consumer’s reasonable expectations based on the context of the interaction, and disclosures made to a third party to process data on behalf of the controller. The scenario presented involves a Vermont resident whose data is shared with a marketing analytics firm. This firm is compensated by a retail company for providing insights into consumer purchasing trends. The critical element is whether this compensation constitutes “valuable consideration” and if the disclosure fits within any of the statutory exclusions. Since the marketing analytics firm is compensated for providing insights derived from the Vermont resident’s data, and this is not a disclosure to a service provider for operational purposes, nor to an affiliate, nor for a purpose clearly consistent with the consumer’s reasonable expectations without further consent, nor for processing on behalf of the controller in a way that aligns with the exclusions, it constitutes a sale under the VDPA. Therefore, the Vermont resident has the right to opt-out of this specific disclosure. The question probes the understanding of the VDPA’s definition of “sale” and its associated exclusions.

The Vermont Data Breach Prevention Act of 2017, as amended, mandates specific requirements for businesses that own or license personal information of Vermont residents. A key component of this act concerns the notification process following a data breach. While the law outlines general principles for notification, it also provides exemptions under certain conditions. One such exemption pertains to situations where the data involved is encrypted, rendering it unintelligible or unusable to unauthorized persons. Specifically, if the personal information was secured by a technology or method that encrypts the information and renders it unreadable, unintelligible, or indecipherable to unauthorized persons, notification may not be required. This exemption is crucial for businesses that employ robust security measures. The threshold for such security is generally understood to be industry-standard encryption, meaning that the data, even if accessed, cannot be deciphered without the corresponding decryption key. The act does not mandate a specific encryption algorithm but implies a standard of security that effectively protects the data. Therefore, if a business can demonstrate that the compromised data was rendered inaccessible and unusable due to strong encryption, it may be relieved of the direct notification obligation to affected individuals and the Attorney General. However, it is imperative for the business to maintain records and be prepared to substantiate this claim. The purpose of this exemption is to avoid unnecessary alarm and burden on consumers and businesses when the compromised data poses no actual risk due to effective security.

The Vermont Data Privacy Act (VDPA) establishes specific requirements for businesses that collect, process, and share personal information of Vermont residents. A key aspect of the VDPA, similar to other comprehensive state privacy laws, is the delineation of consumer rights and the obligations of controllers and processors. When a business operates across multiple states, understanding which state’s laws apply is crucial. Vermont law, like that of many other states, focuses on the residency of the consumer whose data is being processed. Therefore, if a business collects personal information from a Vermont resident, even if the business is physically located in another state such as California or Texas, and the data processing activities occur outside of Vermont, the VDPA’s provisions regarding that specific consumer’s data would still apply. This extraterritorial reach is a common feature of modern privacy legislation, aiming to protect residents regardless of where the business is headquartered or where the data is processed. The threshold for applicability under the VDPA, which focuses on the sale of personal information or targeted advertising, is met by the described business activities. The core principle is that the law follows the consumer.

The Vermont Data Privacy Act (VDPA) establishes specific requirements for businesses that collect, process, and share personal information of Vermont residents. A key aspect of the VDPA, similar to other comprehensive state privacy laws, is the concept of a “universal opt-out.” This refers to a mechanism that allows consumers to universally signal their preference to opt out of the sale of their personal information or targeted advertising across multiple websites and services without having to individually manage settings on each platform. The VDPA, as amended, specifically mandates that controllers must recognize and honor opt-out preference signals sent by consumers. These signals are typically communicated through browser settings or other user-enabled mechanisms. The law requires controllers to process these signals in a way that is effective and does not require consumers to re-submit their preference multiple times. This reflects a growing trend in privacy legislation to empower consumers with more granular control over their data and to reduce the burden on individuals to manage privacy preferences across the digital ecosystem. The core principle is to provide a seamless and consistent opt-out experience for consumers who wish to limit the processing of their personal data for certain purposes, particularly the sale of data and targeted advertising.

The Vermont data privacy law, specifically the Vermont Data Broker Act (21 V.S.A. Chapter 70), imposes obligations on data brokers operating in the state. A key provision requires data brokers to register with the Attorney General and to disclose certain information about their data collection and sharing practices. While the law focuses on data brokers, its principles of transparency and consumer notification are relevant to broader data protection discussions. The law mandates that data brokers establish and maintain a reasonable security program to protect personal information. Furthermore, it requires data brokers to provide consumers with the ability to opt-out of the sale of their personal information. The question probes the specific requirements of this Vermont legislation concerning data broker registration and notification. The correct answer reflects the statutory obligations for data brokers to register and to provide a clear mechanism for consumers to opt-out of the sale of their personal information. Other options present requirements that are either not specific to Vermont’s data broker law, are too general, or misrepresent the core obligations. For instance, while data security is a component, the primary focus of the registration and opt-out provisions is distinct. The concept of requiring a specific privacy policy detailing data handling practices is also part of general data protection principles, but the Vermont Data Broker Act’s core mandates are registration and opt-out for sale.

The Vermont Data Privacy Act (VDPA) grants consumers rights regarding their personal information. One such right is the right to deletion. When a consumer requests deletion, a controller must comply unless an exception applies. The VDPA outlines specific exceptions, including situations where the personal data is necessary to complete a transaction requested by the consumer, to prevent, identify, or address fraud, or to comply with a legal obligation. In this scenario, the company is legally obligated by Vermont state law to retain certain financial transaction records for a period of seven years for audit purposes. Therefore, the request for deletion of these specific financial records must be denied due to this overriding legal obligation. The VDPA’s exceptions are crucial for balancing consumer privacy with legitimate business and legal requirements. Understanding these exceptions is vital for compliance, ensuring that deletion requests are handled appropriately according to Vermont’s specific legal framework.

Vermont’s data privacy landscape, while not as comprehensive as some other states, requires businesses handling personal information of Vermont residents to implement reasonable security measures. The Vermont chapter 224, section 1301 et seq. of the Vermont Statutes Annotated, titled “Data Security,” mandates specific requirements for entities that own or license personal information of Vermont residents. This statute focuses on the obligation to implement and maintain a reasonable information security program. A key aspect is the requirement for a written information security policy that outlines administrative, technical, and physical safeguards. The law also mandates the designation of an employee responsible for the program and the implementation of specific security measures, such as access controls, encryption, and regular risk assessments. The core principle is to protect personal information from unauthorized access, destruction, or disclosure. This is not about specific notification timelines or data breach requirements, which are often covered by separate statutes, but rather the proactive measures taken to prevent breaches in the first place. The emphasis is on a risk-based approach, meaning the program’s scope and nature should be appropriate to the entity’s size, complexity, and the nature of the personal information it handles.

The Vermont Data Privacy Act (VDPA) defines a “consumer” as a natural person who is a resident of Vermont. The Act applies to persons that conduct business in Vermont and either target Vermont consumers with the intent to generate revenue or derive a significant portion of their revenue from the sale of personal information. The VDPA grants consumers specific rights, including the right to access, delete, and opt-out of the sale of their personal data. It also requires controllers to provide clear privacy notices and obtain consent for certain data processing activities, particularly sensitive data. The Act does not apply to data processed by a controller that has fewer than 100,000 consumers and does not derive a significant portion of its revenue from the sale of personal information, unless the controller has the ability to derive a significant portion of its revenue from the sale of personal information. In this scenario, even though the company targets Vermont residents and derives revenue from them, the key threshold for applicability, absent significant revenue from data sales, is the number of Vermont consumers whose data is processed. Since the company processes the personal information of 75,000 Vermont consumers, it falls below the 100,000 consumer threshold and does not derive a significant portion of its revenue from the sale of personal information. Therefore, the Vermont Data Privacy Act would not apply.

The Vermont data privacy law, specifically the Vermont Data Broker Act, imposes obligations on entities that collect, sell, or license personal information of Vermont residents. A key aspect of this law is the requirement for data brokers to implement reasonable security measures to protect personal information. The law defines “reasonable security measures” as a security program that includes administrative, technical, and physical safeguards designed to protect the confidentiality, integrity, and availability of personal information. This involves conducting risk assessments, training employees, and implementing appropriate technologies. The law does not mandate specific technologies or a particular percentage of data protection, but rather a holistic approach to security based on the nature and scope of the data handled. The act also requires data brokers to provide consumers with certain rights, including the right to know if their data is being sold and the right to opt-out of the sale of their personal information. The focus is on the proportionality of the security measures to the risks associated with the data being processed.

The Vermont Data Privacy Act (VDPA) establishes specific requirements for data brokers, defining them as entities that knowingly collect, process, and sell the personal information of consumers with the primary purpose of selling or licensing that personal information to third parties. Section 1103 of the VDPA outlines the obligations of data brokers, including registration with the Attorney General, disclosure of certain information, and adherence to opt-out requests. The act also specifies exemptions. For instance, entities that are not primarily engaged in the business of selling or licensing personal information, such as certain healthcare providers or financial institutions subject to federal privacy laws like HIPAA or GLBA, may be exempt from specific data broker provisions. Additionally, the VDPA does not apply to information that is collected, used, or shared in a manner consistent with federal laws like the Children’s Online Privacy Protection Act (COPPA) or that is de-identified according to the act’s standards. The core of a data broker’s obligation under the VDPA, particularly concerning opt-out mechanisms and disclosures, is directly tied to their primary business function of profiting from the resale or licensing of personal data. Therefore, an entity whose business model is not centered on this activity, even if it incidentally handles personal information, would not be classified as a data broker under the VDPA and thus would not be subject to its specific data broker registration and disclosure mandates.

The Vermont Data Privacy Act (VDPA) establishes specific requirements for data brokers. A data broker, as defined by the VDPA, is a business that knowingly collects and sells the personal information of consumers with whom it has no direct relationship. The VDPA mandates that data brokers register with the Vermont Attorney General’s office and provide certain disclosures. Specifically, data brokers must provide consumers with a clear and conspicuous notice regarding their data collection and sale practices, including the categories of personal information collected, the categories of third parties to whom the personal information is sold, and the means by which consumers can submit requests to exercise their rights. The law also grants consumers the right to opt-out of the sale of their personal information. The VDPA’s focus on data brokers reflects a growing trend among states to regulate entities whose primary business model involves the commercialization of personal data, often without direct consumer engagement. This regulatory approach aims to enhance transparency and consumer control over the flow of personal information in the digital economy.

Vermont’s data privacy landscape, while not as comprehensive as some other states like California, still imposes obligations on businesses that handle the personal information of Vermont residents. The Vermont Personal Information Privacy Act (VPIPA), enacted in 2019, primarily focuses on data security. Specifically, it requires any person who owns or licenses the personal information of a Vermont resident to implement and maintain reasonable security measures to protect the personal information from unauthorized acquisition. The Act defines “personal information” broadly as information that identifies an individual and is not publicly available. The core obligation is to prevent unauthorized access, acquisition, or use. There is no explicit private right of action under VPIPA; enforcement is primarily handled by the Vermont Attorney General. This means that individuals cannot directly sue a company for a violation of VPIPA. Instead, the Attorney General is empowered to investigate alleged violations and can seek injunctive relief and civil penalties. The Act does not mandate specific technologies or encryption standards, emphasizing a risk-based approach to security. Therefore, a company’s failure to implement reasonable security measures, which then leads to the unauthorized acquisition of Vermont residents’ personal information, would be a violation that the Attorney General could pursue. The absence of a private right of action is a significant distinction from some other state privacy laws.

The Vermont Data Privacy Act (VDPA) defines a “consumer” as an individual who is a resident of Vermont. The Act applies to “persons” that conduct business in Vermont and meet certain thresholds. The VDPA’s scope is triggered by processing the personal data of Vermont consumers or targeting Vermont consumers with products or services. In this scenario, a company based in California is offering online educational courses specifically targeted at residents of Vermont. This targeting, combined with the processing of personal data of these Vermont residents (such as names, email addresses, and course progress), brings the California company under the purview of the VDPA, irrespective of its physical location. The VDPA’s extraterritorial reach is established by its focus on the data subjects’ residency and the company’s engagement with them. Therefore, the California company must comply with the VDPA’s requirements concerning the personal data of Vermont residents. The key factors are the residency of the data subjects and the company’s conduct in relation to them, not the company’s physical presence in Vermont.

The Vermont Data Privacy Act (VDPA) establishes specific requirements for businesses that collect, process, and share personal information of Vermont residents. A key aspect of the VDPA, similar to other comprehensive state privacy laws like the California Consumer Privacy Act (CCPA) as amended by the California Privacy Rights Act (CPRA), involves the concept of “selling” personal information and the associated consumer rights. Under the VDPA, a “sale” is broadly defined to include the exchange of personal information for monetary consideration or other valuable consideration. However, the VDPA also carves out exceptions to this definition, particularly concerning the disclosure of personal information for purposes of providing a product or service requested by the consumer, or for processing that is reasonably necessary and proportionate to achieve the purposes for which the personal information was collected. When a business shares data with a third-party service provider to enhance a product or service that the consumer has actively engaged with, and this sharing is integral to the functionality or improvement of that service, it generally does not constitute a “sale” under the VDPA if the sharing is limited to what is necessary for that specific purpose and the service provider is contractually bound to adhere to data protection obligations. The VDPA’s focus is on commercial exploitation beyond the direct provision of a requested service. Therefore, sharing data with a third-party analytics firm solely to improve a specific feature of a subscription service, where the data is anonymized or aggregated and the firm is bound by strict contractual limitations, would likely fall outside the definition of a sale.

Vermont’s data privacy landscape, particularly concerning biometric information, is shaped by its general consumer protection laws and the absence of a specific, comprehensive biometric privacy statute akin to Illinois’ Biometric Information Privacy Act (BIPA). However, the Vermont Attorney General can enforce deceptive or unfair trade practices under 9 V.S.A. § 2451 et seq. when entities collect, use, or disclose biometric data without adequate notice and consent, or in a manner that misleads consumers. For instance, if a company operating in Vermont advertises a service as being “secure and private” while secretly collecting fingerprint data for purposes beyond authentication without explicit consent, this could be construed as an unfair or deceptive practice. The lack of a private right of action means individuals cannot sue directly for violations, but the Attorney General can investigate and impose penalties. The threshold for action by the Attorney General would involve demonstrating a substantial consumer injury caused by the deceptive practice. The core principle is transparency and preventing misrepresentation regarding the collection and use of sensitive personal data like biometrics.

The Vermont Data Privacy Act (VDPA) establishes specific requirements for businesses that collect and process personal information of Vermont residents. A key aspect of the VDPA, similar to other comprehensive state privacy laws, is the concept of a “verified request” for exercising consumer rights. When a consumer submits a request to access, delete, or correct their personal information, the business must have a reasonable method for verifying the identity of the requestor. This verification process is crucial to prevent unauthorized access or modification of personal data. The VDPA outlines that a business may require a consumer to provide additional information to verify their identity, but this information should be limited to what is reasonably necessary for verification. The purpose of this limitation is to balance the consumer’s right to privacy with the business’s need to ensure the security of the data. If a business cannot reasonably verify the identity of the consumer making the request, it is not obligated to fulfill the request. The VDPA emphasizes a risk-based approach to verification, meaning the level of verification required should be commensurate with the sensitivity of the data and the potential harm from unauthorized access. For instance, a request for general browsing history might require a lower level of verification than a request for sensitive financial or health information. The act also requires businesses to disclose their verification practices in their privacy policies, ensuring transparency with consumers.

The Vermont Data Privacy Act (VDPA), enacted in 2023, establishes a comprehensive framework for consumer data privacy. A key aspect of the VDPA is its focus on consumer rights and controller obligations. One of the fundamental rights granted to consumers is the right to access their personal data. When a consumer submits a verifiable request for access, a data controller must respond within a specified timeframe. The VDPA mandates that controllers provide the consumer with a response without undue delay and, in any event, within forty-five (45) days of receiving the verifiable request. This period can be extended by an additional forty-five (45) days if reasonably necessary, provided the controller informs the consumer of the extension and the reasons for the delay within the initial 45-day period. The law also specifies the types of information that must be included in the response, such as the categories of personal data processed, the purposes of processing, and the recipients to whom the data has been disclosed. The VDPA aims to provide consumers with transparency and control over their personal information, aligning with broader trends in data privacy regulation across the United States, such as those seen in California and Virginia. Understanding these specific timelines and disclosure requirements is crucial for compliance.

The Vermont Data Privacy Act (VDPA), enacted in 2023, establishes specific requirements for businesses that collect, process, and share personal information of Vermont residents. A key aspect of the VDPA, similar to other comprehensive state privacy laws like the California Consumer Privacy Act (CCPA) as amended by the California Privacy Rights Act (CPRA) and the Virginia Consumer Data Protection Act (VCDPA), concerns the rights afforded to consumers regarding their data. Specifically, the VDPA grants consumers the right to access, correct, delete, and opt-out of the sale of their personal information. It also requires controllers to provide clear and conspicuous privacy notices, conduct data protection assessments for high-risk processing activities, and implement reasonable security measures. The definition of “sale” under the VDPA is broad, encompassing the exchange of personal information for monetary or other valuable consideration, regardless of whether the recipient intends to use it for commercial purposes or to advertise. When a business shares personal information with a third party for targeted advertising purposes, even without direct monetary exchange, this can constitute a sale under the VDPA if there is an exchange of value. The VDPA also emphasizes the principle of data minimization, requiring businesses to collect only personal data that is reasonably necessary for the disclosed purposes. Furthermore, the Act mandates that businesses obtain consent before processing sensitive personal information, which includes data related to racial or ethnic origin, religious or philosophical beliefs, union membership, genetic data, biometric data for the purpose of uniquely identifying a natural person, data concerning health, or data concerning a natural person’s sex life or sexual orientation. The Act also defines “profiling” as any form of automated processing of personal data to evaluate certain personal aspects relating to a natural person, and consumers have the right to opt-out of profiling in furtherance of decisions that produce legal or similarly significant effects concerning the consumer.

The Vermont Data Privacy Act (VDPA), enacted in 2023, establishes specific requirements for businesses that process personal information of Vermont residents. A key aspect of the VDPA, similar to other comprehensive state privacy laws like the California Consumer Privacy Act (CCPA) as amended by the California Privacy Rights Act (CPRA), is the concept of a “universal opt-out mechanism.” While the VDPA does not explicitly mandate the implementation of a universal opt-out mechanism by businesses, it does provide consumers with the right to opt out of the sale of personal information and targeted advertising. For businesses that choose to recognize universal opt-out mechanisms, the VDPA outlines certain obligations. Specifically, if a business honors a consumer’s request to opt out of the sale of personal information or targeted advertising through a recognized universal opt-out mechanism, the business must treat that request as a request to opt out of the processing of personal information for those specific purposes. This means that if a consumer uses a browser setting or other signal that indicates their intent to opt out of the sale of personal information or targeted advertising, and the business recognizes this signal, the business must cease processing their personal information for those purposes. The VDPA’s framework for universal opt-out mechanisms is still evolving, and businesses need to stay informed about any future guidance or regulations issued by the Vermont Attorney General’s office regarding the recognition and implementation of such mechanisms. The core principle is that if a business chooses to honor these signals, they must do so consistently and effectively across their operations for the specified purposes.

The Vermont Personal Information Privacy Act (VPIPA) requires businesses that maintain, own, or license personal information of Vermont residents to implement and maintain reasonable security measures to protect this information from unauthorized access, acquisition, destruction, use, modification, or disclosure. When a data breach occurs that is likely to result in a significant risk of harm to consumers, the VPIPA mandates notification to affected Vermont residents and, in certain circumstances, to the Vermont Attorney General. The definition of “significant risk of harm” is crucial in determining when notification obligations are triggered. While the VPIPA does not provide a precise numerical threshold for what constitutes “significant risk,” it emphasizes a qualitative assessment based on the nature of the information compromised and the potential for misuse. For instance, if sensitive data like Social Security numbers, financial account information, or medical records are exposed, the risk of harm is generally considered higher, necessitating notification. The Act focuses on the potential for identity theft, financial fraud, or other forms of economic or reputational damage to individuals. The prompt asks about the direct notification obligation to Vermont residents following a breach of unencrypted personal information, assuming a significant risk of harm is established. The VPIPA requires that notification be made without unreasonable delay and, if the business has a contract with a third-party service provider that is responsible for the breach, the business must notify the consumer. The law also allows for notification to be delayed if a law enforcement agency determines that it would impede an investigation. The core obligation, however, is to notify the affected individuals directly.

Vermont’s data privacy landscape, particularly concerning biometric information, is primarily shaped by its general consumer protection laws and the potential application of existing statutes rather than a singular, comprehensive biometric privacy law akin to Illinois’ BIPA. While Vermont does not have a direct equivalent to BIPA, the Vermont Consumer Protection Act (VCPA) prohibits unfair or deceptive acts or practices in commerce. The collection, use, and disclosure of biometric data, if not handled with transparency and security, could be construed as unfair or deceptive under the VCPA, especially if consumers are not adequately informed or have not consented. Furthermore, the Vermont Attorney General has broad authority to enforce consumer protection laws. In the absence of specific biometric legislation, entities handling such data must exercise a high degree of care, ensuring robust security measures, clear privacy policies detailing the collection and purpose of biometric data, and obtaining affirmative consent where appropriate to avoid potential enforcement actions under existing consumer protection frameworks. The concept of “unfair or deceptive acts or practices” under the VCPA can encompass situations where sensitive data like biometrics is mishandled, leading to potential harm or a breach of consumer trust, even without explicit statutory language defining biometric data privacy rights.

The Vermont Data Privacy Act (VDPA) defines a “consumer” as an individual who is a resident of Vermont. The Act applies to “persons” that conduct business in Vermont and satisfy certain thresholds related to processing personal data of Vermont consumers. Specifically, the VDPA applies to a person who: (1) controls or processes the personal data of at least 100,000 consumers, excluding personal data processed solely for the purpose of completing an electronic fund transfer transaction; or (2) controls or processes the personal data of at least 35,000 consumers and derives more than 50 percent of its gross revenue from selling personal data. The scenario describes “Artisan Goods Inc.” as a company based in Delaware that sells handcrafted items online. It collects customer information, including names, addresses, and purchase histories, from individuals across the United States. Crucially, Artisan Goods Inc. has 150,000 customers who are residents of Vermont and has processed their personal data. Therefore, Artisan Goods Inc. meets the threshold of processing the personal data of at least 100,000 Vermont consumers, triggering the applicability of the Vermont Data Privacy Act. The fact that the company is based in Delaware is irrelevant to the Act’s applicability, as it targets entities that conduct business in Vermont and process the data of Vermont residents. The VDPA’s scope is determined by the residency of the individuals whose data is processed and the volume of that data, not the physical location of the business.

The Vermont Data Privacy Act (VDPA) grants consumers the right to opt out of the sale of their personal information. A “sale” under the VDPA is broadly defined to include exchanges of personal information for monetary or other valuable consideration. When a business shares personal information with a third party for targeted advertising purposes, and that sharing involves any form of consideration, it constitutes a sale. This consideration doesn’t have to be direct monetary payment; it can include things like the third party’s provision of services or data in exchange for the information. Therefore, if a Vermont resident’s data is shared with an advertising network in exchange for the network’s analytics services, this exchange falls under the VDPA’s definition of a sale, triggering the consumer’s right to opt out. The law requires businesses to provide clear mechanisms for consumers to exercise this opt-out right, typically through a “Do Not Sell My Personal Information” link. The scope of “valuable consideration” is intentionally broad to capture various data-sharing arrangements that benefit both parties.