Legislation that would give Vermonters the ability to sue large data brokers that misuse their personal information is being heralded as the strongest data privacy bill in the country, but Republican Gov. Phil Scott has indicated he may veto the measure.
An eleventh-hour compromise between House and Senate lawmakers late last week cleared the path for legislation that would prohibit the sale of sensitive data, and allow consumers to file civil suits against companies that violate data-privacy regulations.
Bradford Rep. Monique Priestley, a Democrat, said lack of action in Congress to rein in Big Tech has compelled states to exert more control over companies that collect and sell consumers’ data. And she said she hopes Vermont’s reform effort will eventually become a national model.
“In order for us to have strong protections at the national level, each state needs to help move the needle a little bit further, so that when there is a national model, it’ll be based on whatever’s collectively the strongest,” Priestley told Vermont Public on Monday.
National consumer protection groups, including Consumer Reports and the Electronic Privacy Information Center, say the bill could mark a “turning point” in state privacy laws.
“The inclusion of a private right of action in this law, while limited, is enormously significant,” said Matt Schwartz, a policy analyst at Consumer Reports. “It means that consumers who have been harmed by Big Tech’s data abuses will actually be granted the ability to defend their rights.”
That private right of action, which gives consumers the legal standing needed to file suit against data brokers that misuse their data, is one of the main reasons Scott may veto the bill.
Opponents of the legislation say it could open the door to frivolous legal suits against Vermont companies. A spokesperson for the governor said Monday that Scott is “uncomfortable” with that element of the bill.
“The governor has not yet decided what he’ll do when the bill reaches him,” said Scott’s spokesperson, Jason Maulucci.
The legislation could also provide new protections for children on social media. Chittenden County Sen. Kesha Ram Hinsdale said the bill would force tech companies to get rid of the most addictive features on platforms such as Instagram and TikTok.
“We are part of a national movement to stand up to Big Tech and say, ‘enough is enough’ when it comes to social media addiction and the health of our young people,” she said.
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