What is the Montana Consumer Data Protection Act (MTCDPA)?

The Montana Consumer Data Privacy Act (MTCDPA), which became effective on October 1, 2024, introduces a series of data privacy rights for Montana residents and compliance obligations for businesses operating in the state. This law is applicable to businesses that process the personal data of at least 50,000 consumers annually or derive more than 25% of revenue from the sale of data from at least 25,000 individuals. It does not apply to government entities, nonprofits, educational institutions, or businesses regulated under federal privacy laws such as HIPAA and COPPA.

Consumer Rights and Business Obligations

Under the MTCDPA, Montana residents are granted the rights to access, correct, delete, and receive a portable copy of their personal data. They may also opt out of data sales, targeted advertising, and profiling activities that have significant effects. Businesses that qualify, especially data controllers, must publish transparent privacy notices, obtain explicit consumer consent for processing sensitive data, and recognize Global Privacy Control (GPC) signals by January 1, 2025. Businesses must also perform data protection assessments for high-risk processing activities and implement reasonable data security measures.

Who Must Comply with the MTCDPA?

The MTCDPA applies to entities defined as data controllers (organizations that determine data processing purposes and means) and data processors (organizations processing data on behalf of a controller). 

This framework, modeled after the GDPR, delineates distinct roles and responsibilities for data controllers and processors, aligning Montana’s privacy obligations with international standards.

What are the requirements for the MTCDPA?

To comply with the MTCDPA, data controllers must:

• Limit Data Collection: Collect only the necessary personal data for the specified processing purposes.
• Publish Transparent Privacy Notices: Privacy policies must outline data categories processed, the purpose of processing, categories of third parties receiving data, contact information, and guidance on exercising consumer rights.
• Obtain Consent for Sensitive Data: Controllers must secure consumer consent before processing sensitive data such as genetic, biometric, racial, religious, health, or geolocation information.
• Provide Opt-Out Mechanisms: Effective January 1, 2025, controllers must offer universal opt-out mechanisms for data sales and targeted advertising.
• Conduct Data Protection Assessments: Controllers are required to assess data processing activities involving sensitive data or presenting heightened risks, like targeted advertising and profiling.
• Secure De-identified Data: Ensure de-identified data remains anonymous, with contractual agreements binding third parties to maintain the data’s de-identified status.
• Comply with Children’s Privacy Protections: Obtain parental consent for processing personal data of children under 13, following the Children’s Online Privacy Protection Act (COPPA) standards.

Data processors are also subject to the MTCDPA, though their responsibilities are distinct:

• Assist Controllers: Support data controllers in handling consumer requests.
• Formalize Agreements: Processors must have formal contracts with controllers detailing privacy obligations.

What Rights Does the MTCDPA Grant to Consumers?

The MTCDPA provides Montana residents, acting in an individual capacity, the following rights:

• Confirmation: The right to confirm if a controller is processing their data.
• Accessibility: The right to access personal data collected by the controller.
• Correction: The right to correct inaccuracies in their personal data.
• Deletion: The right to request data deletion.
• Portability: The right to receive a copy of their data in a portable format.
• Opt-Out Rights: The right to opt out of data sales, targeted advertising, and certain profiling activities.

Controllers must respond to requests within 45 days, with a possible 45-day extension. If a controller denies a request, consumers may appeal, with controllers required to respond to appeals within 60 days.

Why should you be MTCDPA compliant?

Compliance with the MTCDPA fosters consumer trust by demonstrating a commitment to data privacy, which can lead to a competitive edge. MTCDPA compliance reduces legal risks by protecting organizations from financial penalties and reputational damage. Additionally, adhering to MTCDPA’s guidelines improves data security measures, helping mitigate the risk of data breaches and enhancing organizational resilience.

How to achieve compliance?

To achieve MTCDPA compliance, organizations should review and update privacy policies, adopt strong data protection practices, and set up efficient processes for managing consumer data requests. Regular employee training on MTCDPA requirements and periodic audits will help maintain compliance. Platforms like Centraleyes offer MTCDPA assessment tools to help businesses track compliance, address gaps, and access regulatory guidance.

Read more: 

The post Montana Consumer Data Protection Act appeared first on Centraleyes.

*** This is a Security Bloggers Network syndicated blog from Centraleyes authored by Avigail Politzer. Read the original post at: https://www.centraleyes.com/montana-consumer-data-protection-act/