In a recent development in the realm of data privacy, Delaware has become the twelve state to ratify data privacy legislation. The Delaware governor, John Carney, gave his assent to the Delaware Personal Data Privacy Act (the “DPDPA” or the “Act”) on September 12, 2023. This act holds significant implications for businesses that operate or aim to establish a presence in Delaware, with requirements to protect privacy rights by regulating the collection, use, and disclosure of personal data. For companies, corporate counsel, and law firm practitioners, understanding and compliance with this new Act are paramount.
Impacts of the DPDPA are far-reaching – the Act applies to businesses that conduct operations within the state and those that specifically target Delaware’s residents with their products or services. As part of their operations, these businesses utilize personal data extensively. Therefore, it is critical for these entities to understand the Act’s provisions and adapt in order to ensure their data management practices align with the statutory requirements.
The signing of the DPDPA into law aligns Delaware with a growing trend among states recognizing the need for robust legislation to ensure data privacy. With twelve states now on board, the message to companies, both national and international, is clear – the importance of data privacy cannot be underestimated, and regulatory requirements must be appropriately addressed.
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Despite being labelled the “Not-So-First State” in this context, Delaware’s action serves as a further impetus for this trend towards stronger data privacy measures, offering an example for other states yet to implement similar legislation. As the world continues to digitize and dependency on data increases, we can anticipate that data privacy will remain a central issue for legislators and stakeholders alike in the coming years.