Montana's Senate Bill 297, introduced on February 21, 2025, aims to enhance consumer privacy by regulating targeted advertising practices within the state. This legislation seeks to address growing concerns over how personal data is collected and used by businesses, particularly in the digital advertising space.

The bill defines "targeted advertising" as the practice of displaying ads based on personal data gathered from consumers' online activities across various websites and applications. Notably, it excludes advertisements based on a consumer's current search queries or those that respond to direct requests for information. This distinction is crucial as it aims to protect consumers from invasive advertising tactics while still allowing businesses to engage with potential customers in a more traditional manner.

One of the key provisions of SB 297 is its applicability to businesses that control or process the personal data of at least 25,000 consumers, or those that derive a significant portion of their revenue from selling personal data. This threshold is designed to ensure that larger entities, which have a greater capacity to impact consumer privacy, are held accountable under the new regulations.

The bill has sparked notable debates among lawmakers and stakeholders. Proponents argue that it is a necessary step toward safeguarding consumer rights in an increasingly digital world, where personal data is often exploited without adequate consent. Critics, however, express concerns that the regulations could impose burdensome compliance costs on businesses, particularly small enterprises that may struggle to adapt to the new requirements.

The implications of SB 297 extend beyond privacy concerns; they also touch on economic factors. By regulating how personal data is used, the bill could reshape the advertising landscape in Montana, potentially affecting revenue streams for businesses reliant on targeted marketing strategies. Experts suggest that while the bill may protect consumers, it could also lead to a shift in how businesses approach advertising, possibly resulting in less personalized but more broadly targeted campaigns.

As the legislative process unfolds, the future of SB 297 remains uncertain. If passed, it could set a precedent for similar privacy regulations in other states, reflecting a growing national trend toward stronger consumer protections. For Montana residents, the outcome of this bill could mean greater control over their personal information and how it is used in the marketplace.