The Massachusetts legislature is moving forward with a new consumer data privacy bill. According to the passed version, residents would have more explicit rights to access and erase their personal data, and businesses would be prohibited from sharing or selling sensitive information, including precise location data, without explicit consent.
The House of Representatives passed it unanimously.
The Massachusetts House of Representatives recently passed the Consumer Data Privacy Act by a vote of 146 to 0. This followed a similar passage in the state Senate last September, which received unanimous support from 40 senators.
Next, the versions from both houses will enter the integration process before being sent to the governor's office. According to local and foreign media reports, the bill is expected to be signed into law, but the specific timing is yet to be determined.
Applicable to medium and large enterprises
The bill will apply to companies that process or control the personal data of more than 100,000 consumers. This means that the affected entities include not only large tech companies but also a number of mid-sized startups.
According to the bill, companies must obtain explicit user consent before sharing or selling sensitive data. Sensitive information covers a broad range, including not only precise geographic locations but also:
- Biometrics and health-related information
- Genetic information and fingerprints, among other identity data
- Information such as religion, immigration status, and sexual orientation
Location data trading faces tightening
The trading of location data has long been a focal point of privacy controversies in the United States. For years, data brokers have relied on app developers to collect and sell user location data, then repackage and resell this data to advertisers, government agencies, or other paying buyers.
Concerns exist that once this type of data enters the open commercial market, it could be used to track individual activities or even be obtained by harassers or agencies outside of law enforcement. The U.S. federal government had previously come close to restricting the trading of sensitive data, but those adjustments were later withdrawn.
Another key point of the bill is that the ban applies not only to state residents but also to visitors to Massachusetts. If ultimately implemented, the trading of precise location data within the state will face broader restrictions, directly impacting startups and advertising companies that rely on location data for their business.
