Connecticut establishes new regulations on data brokers and personal data sales

On April 9, 2025, the Connecticut State Legislature introduced Substitute Bill No. 1356, a significant piece of legislation aimed at enhancing consumer protection in the realm of personal data management. The bill seeks to address growing concerns regarding data privacy, particularly in relation to minors and the practices of data brokers.

The primary purpose of Senate Bill 1356 is to establish clearer regulations surrounding the collection, use, and sale of personal data, particularly data that is brokered. Key provisions include definitions of terms such as "brokered personal data" and "data broker," as well as stipulations on how businesses can engage with personal data. Notably, the bill outlines the responsibilities of data brokers and mandates that they operate transparently, ensuring consumers are informed about how their data is being utilized.

One of the most critical aspects of the bill is its focus on protecting minors. It includes provisions that require businesses to obtain explicit consent before processing data related to individuals under the age of 18. This move is seen as a response to increasing public concern over the vulnerability of young users in the digital landscape.

Debate surrounding the bill has been robust, with proponents arguing that it is a necessary step toward safeguarding consumer rights and enhancing data security. Critics, however, have raised concerns about the potential burden it may place on small businesses and the feasibility of compliance with the new regulations. Amendments have been proposed to address these concerns, but discussions remain ongoing.

The implications of Senate Bill 1356 extend beyond consumer protection; it also has potential economic ramifications. By imposing stricter regulations on data brokers, the bill could reshape the data marketplace, influencing how businesses operate and interact with consumer data. Experts suggest that while the bill may initially pose challenges for businesses, it could ultimately foster greater consumer trust and lead to a more responsible data economy.

As the legislative process continues, stakeholders from various sectors are closely monitoring the developments surrounding Senate Bill 1356. The bill is set to take effect on October 1, 2025, and its passage could mark a pivotal moment in Connecticut's approach to data privacy and consumer protection.