The Virginia Consumer Data Protection Act (VCDPA) is one of many state-level pieces of legislation designed to offer consumers greater control over their personal data, starting with consent. Are you compliant?
The Virginia Consumer Data Protection Act (VCDPA) is a major piece of legislation that came into effect on January 1, 2023. It establishes a comprehensive legal framework aimed at heightening consumer privacy rights and providing residents of Virginia with greater control over their personal data. With the ubiquitous nature of modern data collection practices, VCDPA not only grants consumers greater rights but imposes strict obligations on businesses that handle this data.
Businesses are also held to a number of obligations related to processing personal data:
Data protection assessments:
Conduct risk assessments for activities that may pose heightened risks to consumer privacy
Privacy policy updates:
Provide clear and accessible privacy policies that inform consumers about their data collection and processing methods
Consumer request handling:
Establish processes to handle consumer requests regarding their rights under the VCDPA, including access, correction, deletion, and data portability
Data minimization:
Limit the collection and processing of personal data to what is necessary for the intended purpose
Transparency:
Be transparent about their data processing activities, including the categories of personal data collected and the purposes for which it is used
VCDPA pertains to any business that processes the personal data of Virginia residents and meets at least one of the following criteria:
Processes the personal data of at least 100,000 consumers in a calendar year
Processes the personal data of at least 25,000 consumers and derives over 50% of its gross revenue from the sale of personal data
There are some exemptions to VCDPA, including:
Any government body, authority, board, commission, district, or agency of Virginia or its political subdivisions
Financial institutions or data governed by Title V of the federal Gramm-Leach-Bliley Act
Covered entities or business associate subject to the privacy, security, and breach notification regulations under HIPAA
Nonprofit organizations
Higher education institutions
The VCDPA grants Virginia residents a number of rights concerning their data, including allowing consumers to:
Request access to their personal data held by businesses
Correct inaccuracies in their data
Request the deletion of their personal data, with certain exceptions
Opt out of the processing of their personal data for targeted advertising, the sale of their data, or for profiling
Among the many things cookies do, most of all, they are used to track and collect information about consumers’ online behavior and preferences. Under VCDPA regulations, businesses that use cookies must inform consumers about their data collection practices, including what information is being collected and how it will be used.
As with most data privacy non-compliance violations, penalties can be severe in both monetary and reputational terms.
The Attorney General of Virginia is responsible for enforcing VCDPA and has the authority to impose hefty fines. If a business is found to be in violation of VCDPA, the Attorney General can issue a notice of violation, allowing the business 30 days to address the problem. If a violation is not addressed within this time, businesses can face fines of up to 7,500 USD per individual violation.
Businesses can also take additional steps to ensure compliance and a consent-first mindset:
Conduct data audits:
Review current data practices to identify areas that need adjustment to align with VCDPA
Update privacy policies:
Revise privacy notices to clearly outline data practices, consumer rights, and how to exercise those rights
Implement consent management:
Get effective management and control of cookie use with a comprehensive consent management platform like CookieHub
Educate employees:
Offer staff education programs on the importance of data privacy and VCDPA compliance
VCDPA creates complex challenges for businesses while empowering consumers with control of their personal data. Staying compliant with VCDPA and managing cookie consent becomes intuitive and seamless with a comprehensive consent management platform that does the heavy lifting for you.
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The VCDPA applies to businesses that control or process personal data of Virginia residents, meet certain thresholds (such as revenue or amount of data processed), and conduct business in Virginia or target Virginia consumers. It governs how personal data is collected, used, and shared to protect consumer privacy.
Personal data is any information that is linked or reasonably linkable to an identified or identifiable natural person. This includes data such as names, addresses, email addresses, IP addresses, and other information that can identify an individual.
Sensitive data under the VCDPA includes specific categories of personal data that require additional protections, such as social security numbers, drivers’ license or state ID numbers, financial account numbers, precise geolocation data, racial or ethnic origin data, information about religious beliefs, genetic or biometric data, or health data.
The Virginia Attorney General is the primary regulatory authority responsible for enforcing the VCDPA and overseeing compliance with its provisions.
Certain entities are exempt from the VCDPA, including nonprofits, higher education institutions, consumer reporting agencies regulated under the Fair Credit Reporting Act (FCRA), and entities already subject to other comprehensive federal privacy laws, such as HIPAA.
For more details, visit the official Virginia Attorney General’s website or consult the full text of the VCDPA available through Virginia state government resources.