Connecticut enacts consumer data protection changes under Substitute Bill No. 1356

On April 9, 2025, the Connecticut State Legislature introduced Senate Bill 1356, a significant piece of legislation aimed at enhancing consumer data protection within the state. This bill seeks to address growing concerns over personal data privacy, particularly as digital transactions and data processing become increasingly prevalent in everyday life.

The primary purpose of Senate Bill 1356 is to regulate how businesses handle personal data of Connecticut residents. It establishes thresholds for companies that control or process consumer data, specifically targeting those that manage the personal information of at least 35,000 consumers or derive over 20% of their revenue from selling personal data. This marks a notable shift from previous regulations, which set higher thresholds, thereby expanding the scope of entities that must comply with the law.

Key provisions of the bill include the requirement for businesses to implement robust data protection measures and to provide consumers with clear options regarding their data. Notably, the bill exempts certain entities, such as state agencies, educational institutions, and tribal governments, from its provisions, which has sparked debate among lawmakers and privacy advocates. Critics argue that these exemptions could undermine the bill's effectiveness, while supporters contend that they are necessary to avoid overregulation of essential services.

The introduction of Senate Bill 1356 comes amid a broader national conversation about data privacy, with many states considering similar legislation. Experts suggest that if passed, this bill could set a precedent for other states, potentially influencing national standards for consumer data protection. The implications of this legislation are significant, as it not only aims to safeguard consumer privacy but also addresses the economic realities of businesses that rely on data monetization.

As discussions around the bill continue, stakeholders are closely monitoring its progress. The anticipated effective date of October 1, 2025, gives businesses time to prepare for compliance, but it also raises questions about the balance between consumer protection and the operational realities of data-driven companies. The outcome of Senate Bill 1356 could reshape the landscape of data privacy in Connecticut and beyond, making it a pivotal moment in the ongoing dialogue about consumer rights in the digital age.