The Vermont House Commerce Committee convened on March 21, 2025, to discuss significant updates regarding regulations on data brokers. The meeting focused on potential penalties for violations of injunctions and the definition of data brokers in state law.
A key topic was the proposal to impose escalating fines on data brokers who breach injunctions. Initial suggestions included fines starting at $1,000 for the first violation, increasing to $5,000 for a second, and potentially reaching $50,000 for repeated offenses. Committee members expressed the need to consult with the judiciary committee to finalize these penalties and explore whether certain violations could be classified as criminal offenses, particularly in cases involving bodily harm.
The discussion also highlighted the importance of defining what constitutes a data broker. Some committee members advocated for narrowing the definition to focus solely on data brokers rather than including general commercial entities. This distinction is crucial as it impacts how businesses are regulated under Vermont law. The committee acknowledged the complexity of identifying data brokers, especially as many businesses may inadvertently fall into this category due to their data handling practices.
Additionally, the committee considered amendments that would allow individuals affected by data broker violations to recover attorney fees and court costs. This provision aims to empower consumers and ensure they have the means to seek justice if their data rights are infringed.
The meeting concluded with a consensus on the need for further testimony and discussion to refine the definitions and penalties associated with data brokers. The committee plans to continue its work on these regulations, emphasizing the importance of protecting consumer data in an increasingly digital marketplace.