Connecticut mandates data broker registration for personal data sales

Connecticut's Senate Bill 1356, introduced on April 9, 2025, aims to enhance consumer privacy by regulating data brokers operating within the state. The bill establishes a framework requiring data brokers to register with the Department of Consumer Protection, ensuring they maintain control over the personal data they handle. This legislation addresses growing concerns about the misuse of personal information, particularly as digital data collection becomes increasingly pervasive.

Key provisions of the bill include a mandatory registration process for data brokers, which involves submitting an application and paying a $600 registration fee. This registration must be renewed annually, reinforcing accountability within the industry. The bill defines "personal data" broadly, encompassing various identifiers such as names, addresses, birth dates, and biometric data, thereby providing comprehensive protection for consumers.

Debate surrounding Senate Bill 1356 has highlighted the balance between consumer protection and the operational needs of data brokers. Proponents argue that the bill is essential for safeguarding consumer privacy in an era where data breaches and misuse are rampant. Critics, however, express concerns about the potential burden on small data brokers and the implications for businesses that rely on data for marketing and analytics.

The economic implications of this bill could be significant. By imposing registration fees and compliance requirements, the legislation may lead to increased operational costs for data brokers, which could be passed on to consumers. However, the potential for enhanced consumer trust in businesses that prioritize data protection could also foster a more secure digital marketplace.

As the bill progresses through the legislative process, its outcomes could set a precedent for data privacy laws in other states, reflecting a growing trend toward stricter regulations in the digital age. Stakeholders are closely monitoring the developments, as the final version of the bill could reshape the landscape of data brokerage and consumer rights in Connecticut.