State Data Privacy Laws: What SMBs Need to Know to Stay Compliant

Data privacy regulations are no longer limited to large corporations. As state laws continue to evolve, small to medium-sized businesses (SMBs) are increasingly affected by these regulations. For SMB executives, understanding these laws and how they apply to their businesses is essential to avoid penalties and maintain customer trust.

Key State Privacy Laws and Their Applicability

California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA)

The CCPA, amended by the CPRA, sets clear thresholds for compliance. Your SMB must comply if it meets any of these criteria:

1. Annual Revenue: Gross revenues exceeding $25 million.
2. Data Volume: Processes the personal data of 100,000 or more California consumers, households, or devices annually.
3. Revenue from Data: Derives 50% or more of annual revenue from selling or sharing personal data.

Virginia Consumer Data Protection Act (VCDPA)

The VCDPA applies to businesses that process data of at least 100,000 consumers or derive 50% or more of gross revenue from selling data and process data of at least 25,000 consumers.

Colorado Privacy Act (CPA)

This law applies to businesses that process data of 100,000 or more consumers annually or derive revenue from the sale of personal data for 25,000 or more consumers.

Utah Consumer Privacy Act (UCPA)

The UCPA applies to businesses with $25 million in annual revenue and that either process the data of 100,000 consumers or earn 50% or more of their revenue from selling data of 25,000 or more consumers.

Connecticut Data Privacy Act (CTDPA)

Similar to other laws, Connecticut’s law applies to businesses processing the personal data of 100,000 consumers annually or 25,000 consumers if the data is sold.

When Do SMBs Need to Comply?

While each law varies slightly, the general thresholds for SMBs to fall under these regulations include:

1. Revenue Size: Annual revenues exceeding $25 million are a common benchmark.
2. Data Processing Volume: Handling the data of at least 100,000 individuals (or sometimes as low as 25,000 for specific revenue sources).
3. Revenue from Data Sales: If a significant portion (typically 50%) of your revenue comes from selling or sharing consumer data.

Why Compliance Matters for SMBs

Even if your SMB is under the thresholds, adopting strong privacy practices early has several benefits:

• Build Customer Trust: Privacy-conscious customers prefer businesses that value data protection.
• Future-Proof Operations: As your business grows, compliance needs may become inevitable.
• Mitigate Risk: Breaches and non-compliance can lead to hefty fines and reputational damage.

How Fortium Partners VCISO Can Help

At Fortium Partners, our Virtual Chief Information Security Officer (VCISO) services provide tailored guidance for SMBs navigating these regulations. Here’s how we can assist:

1. Threshold Assessment: Evaluate whether your business meets compliance criteria.
2. Privacy Policy Development: Craft policies that align with applicable regulations.
3. Risk Mitigation Strategies: Implement safeguards to protect consumer data.
4. Compliance Readiness: Prepare for audits or inquiries from regulatory bodies.
5. Continuous Monitoring: Stay ahead of evolving laws and requirements.

Final Thoughts

State data privacy laws are shaping the way SMBs handle consumer information. Understanding when these regulations apply to your business is the first step in staying compliant. With expert guidance from Fortium Partners, your SMB can confidently navigate these requirements, safeguard customer data, and maintain a competitive edge.

Are you ready to ensure your business is compliant with data privacy regulations? Connect with Fortium Partners to learn how our VCISO services can help you meet and surpass these challenges.

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