Nebraska’s Consumer Privacy Act Takes Effect January 2025
As the landscape of data privacy laws continues to evolve across the United States, businesses operating in Nebraska will need to navigate the state’s new consumer data privacy regulations set to take effect on January 1, 2025. The Nebraska Data Privacy Act (“NDPA”), introduces several important requirements for businesses that handle the personal data of Nebraska residents. Here’s a breakdown of what businesses need to know to stay compliant with the new law.
Applicability.
The Nebraska Data Privacy Act applies to any business that either conducts business in Nebraska, offers products or services to Nebraska residents, or processes and sells personal data. Importantly, there are no specific revenue or data volume thresholds. Instead, the law applies to any entity that processes personal data, as long as the entity is not classified as a small business under the federal Small Business Act (businesses with fewer than 500 employees). As a result, businesses of all sizes should pay close attention to their data practices in Nebraska.
Consumer Rights.
The law introduces several consumer rights related to personal data. Consumers will have the right to confirm whether their data is being processed, access that data, correct inaccuracies, delete personal data, and obtain a copy of their data. Additionally, consumers can opt out of targeted advertising, the sale of their data, or profiling used to make significant decisions about them. Businesses must respond to consumer requests within 45 days and provide a justification if a request is denied, with instructions on how to appeal.
Sensitive Data.
One of the most significant provisions of the law is the requirement for businesses to obtain opt-in consent before processing sensitive data. Sensitive data includes information such as racial or ethnic origin, religious beliefs, mental or physical health conditions, genetic or biometric data, and children’s data. Companies processing any of this sensitive data must ensure they have clear and informed consent from consumers prior to collecting or using it.
Business Responsibility.
In addition to consumer rights, the Nebraska Data Privacy Act imposes specific responsibilities on businesses. For instance, businesses must adhere to data minimization principles, ensuring they only collect the personal data necessary for their specific purposes. They must also establish secure methods for consumers to exercise their rights, conduct data protection assessments, and enter into written agreements with third-party processors to govern data processing activities.
Opt-Out Mechanism.
Another aspect of the law is the inclusion of universal opt-out mechanisms (“UOOMs”), which allow consumers to easily opt out of data sales or targeted advertising. However, businesses are only required to recognize these mechanisms if they are already obligated to do so under another state’s privacy law.
Enforcement and Compliance.
While there is no private right of action under the Nebraska law, enforcement is handled by the state attorney general, who can levy penalties of up to $7,500 per violation. However, businesses will be given a 30-day cure period to address any issues before fines are imposed.
Compliance Recommendation.
As businesses prepare for the law’s implementation, there are several key steps they should take to ensure compliance:
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Ensure Privacy Policies are Updated. Make sure your privacy notices reflect the new consumer rights and responsibilities under the Nebraska Data Privacy Act. This includes explaining the categories of data collected, the purposes for processing, how consumers can exercise their rights, and whether sensitive or biometric data is collected.
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Review Data Collection Practices. Audit your data practices to ensure that you’re only collecting the minimum amount of data necessary for the specific purposes you’ve outlined.
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Obtain Consent for Sensitive Data. If you process sensitive personal data, review your processes to ensure that you’re obtaining opt-in consent from consumers before any data is collected.
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Establish Secure Methods for Consumer Requests. Implement secure channels for consumers to submit their data requests, including the ability to correct, delete, or opt out of data processing.
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Conduct Data Protection Assessments. Perform and document assessments to evaluate the risks associated with your data processing activities, particularly when it comes to sensitive personal data.
While the Nebraska Data Privacy Act is similar in many respects to other state-level privacy laws, it introduces a few unique elements, such as the opt-in consent requirement for sensitive data and the specific enforcement mechanisms. Companies should begin preparing now to ensure they meet the January 1, 2025 compliance deadline.
Explore our comprehensive CLIClaw’s Privacy Compliance Library for essential resources and step-by-step guidance to ensure your business is fully compliant.
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This article is for information purposes only. It is not intended to be and should not be relied on as legal advice for any particular matter.