Nebraska Data Privacy Act: What Businesses Need to Know
Nebraska’s jumping into the data privacy game with its own set of rules. The Nebraska Data Privacy Act got the green light on April 17, 2024, and kicked in on January 1, 2025. This makes Nebraska the 17th state to get serious about data privacy. The law’s all about making sure businesses that deal with personal data in Nebraska play by the rules. The Attorney General’s the one keeping an eye on things, so no private lawsuits here. It’s a big move for Nebraska, and it’s got folks talking about what it means for both businesses and everyday people.
Key Takeaways
- Nebraska became the 17th state to pass comprehensive data privacy legislation with the Data Privacy Act (LB 1074).
- Effective January 1, 2025, the law establishes consumer rights such as access, deletion, and opting out of data sales.
- The law applies to businesses dealing with personal data in Nebraska, but small businesses are off the hook.
- Enforcement is led by the Nebraska Attorney General, with penalties of up to $7,500 per violation.
Table of Contents
Introduction to the Nebraska Data Privacy Act
Purpose and Objectives
The primary aim of the Nebraska Data Privacy Act is to ensure that organizations handling personal data do so responsibly and transparently. The law sets clear guidelines for data collection, processing, and protection, aiming to create a safer environment for both consumers and businesses. Key objectives include:
- Protecting personal data from unauthorized access and misuse.
- Informing consumers about how their data is being used.
- Establishing a framework for businesses to follow in order to comply with data privacy standards.
Key Definitions
To fully understand the Nebraska Data Privacy Act, it’s important to grasp some key definitions:
- Personal Data: Any information relating to an identified or identifiable individual.
- Data Controller: An entity that determines the purposes and means of processing personal data.
- Processing: Any operation or set of operations performed on personal data, such as collection, storage, use, or disclosure.
Scope and Applicability of the Nebraska Data Privacy Act
Scope
The Act applies to businesses that:
- Operate in Nebraska or offer products and services to Nebraska residents.
- Process or sell personal data.
Exemptions and Exclusions
Small businesses, as defined by the Small Business Act, unless selling sensitive data without consent.
Additionally, financial institutions covered by the Gramm-Leach-Bliley Act (GLBA) and entities under the Health Insurance Portability and Accountability Act (HIPAA) are also off the hook. Plus, certain types of data, like health records and educational records, get a pass too.
Comparison with Other State Privacy Laws
Nebraska’s Data Privacy Act (NDPA) shares a lot of ground with other state privacy laws like those in California, Virginia, and Texas. It encompasses many of the same consumer rights, such as the right to access personal data, the right to correct inaccuracies, and the right to delete personal information upon request. These rights are pretty standard across various states, aiming to give consumers more control over their data.
However there are some differences, including:
- No Revenue Threshold: Unlike the CCPA, there’s no minimum revenue or consumer data volume requirement for compliance.
- Indefinite Cure Period: While many states sunset cure periods, Nebraska’s provision allows businesses 30 days to rectify violations anytime.
- Broad Definition of “Sale”: Includes data exchanges for monetary or other valuable considerations, similar to California and Connecticut.
The NDPA’s broad applicability and lack of revenue thresholds suggest Nebraska’s intent to cast a wide net, ensuring more businesses adhere to data privacy standards.
Consumer Rights Under the Nebraska Data Privacy Act
Businesses must respond to requests within 45 days, with extensions allowed for complex cases.
Right to Access and Correct Data
Under the Nebraska Data Privacy Act, consumers have the right to know if their personal data is being processed and to access that data. If there are any inaccuracies, they can request corrections. This ensures that individuals have control over their personal information and can maintain its accuracy.
Right to Data Portability
Another important right granted by the Act is the right to data portability. Consumers can obtain a copy of their personal data in a format that is easily usable and can be transferred to another controller if needed. This empowers consumers to have greater flexibility and control over their data.
Right to Opt-Out of Data Sales
Consumers also have the right to opt out of the sale of their personal data. This includes opting out of targeted advertising and profiling that could have significant effects on them. This aspect of the law enhances consumer protection by giving individuals more say over how their data is used and shared.
Obligations for Businesses Under the Nebraska Data Privacy Act
Data Protection and Security Measures
Businesses operating under the Nebraska Data Privacy Act need to prioritize data protection. This means implementing robust security protocols like data encryption and access control mechanisms. These measures are crucial to safeguard personal data against unauthorized access or breaches. Failure to secure data properly can lead to severe penalties and damage to reputation. Additionally, companies are required to conduct regular data protection assessments, especially for activities deemed high-risk, such as handling sensitive information or engaging in targeted advertising.
Privacy Notices and Transparency
Transparency is a key requirement under the Act. Businesses must provide clear, accessible privacy notices to consumers. These notices should detail the types of personal data collected, the purpose of data processing, and how consumers can exercise their rights. It’s not just about compliance; transparency helps build trust with consumers. A well-crafted privacy notice should also include information on the third parties with whom data is shared and the specific data categories involved.
Contracts with Data Processors
When businesses engage third-party processors, they must have contracts in place that clearly outline data handling responsibilities. These contracts should cover aspects such as data processing instructions, confidentiality obligations, and protocols for data deletion. They should also ensure processors assist with consumer requests related to their data. This contractual obligation helps maintain accountability and ensures that processors adhere to the same standards of data protection as the businesses themselves.
Enforcement and Penalties of the Nebraska Data Privacy Act
Role of the Attorney General
The Nebraska Attorney General holds the exclusive power to enforce the Nebraska Data Privacy Act. This means that if a company is suspected of violating the law, only the Attorney General can take action. Consumers themselves don’t have the right to sue companies directly. Instead, they must rely on the Attorney General to step in and address any issues.
Penalties for Non-Compliance
If a business is found to be in violation of the act, they could face significant fines. The law allows for penalties of up to $7,500 for each violation. However, before any fines are imposed, companies are given a 30-day window to “cure” or fix the violation. This means they have a chance to correct their mistakes and avoid penalties. If they fail to do so, the fines kick in.
| Violation | Penalty |
|---|---|
| Each Violation | Up to $7,500 |
Cure Provisions and Appeals
When a violation is identified, businesses have a 30-day period to make things right. During this time, they must not only fix the issue but also provide a written statement confirming the correction and promising not to repeat the violation. If they don’t comply within this timeframe, or if they breach their promise, they face the full brunt of the penalties. Companies can appeal the Attorney General’s decision, but this process can be lengthy and complicated.
Wrapping Up the Nebraska Data Privacy Act
So, there you have it, the Nebraska Data Privacy Act in a nutshell. This new law is a big deal for anyone doing business in Nebraska or dealing with Nebraskan data. It’s all about keeping personal info safe and sound, and making sure companies are upfront about how they use it. While it might seem like just another set of rules to follow, it’s really about building trust with consumers and avoiding any nasty surprises down the road.
It’s not just about compliance; it’s about showing customers that their privacy matters. And who knows, maybe Nebraska’s approach will set the stage for even more states to follow suit. Only time will tell.
Noa Kahalon
Noa is a certified CIPM, CIPP/E, and a Fellow of Information Privacy (FIP) from the IAPP. Her background consists of marketing, project management, operations, and law. She is the co-founder and COO of hoggo, an AI-driven Digital Governance platform that allows legal and compliance teams connect, monitor, and automate digital governance across all business workflows.