Data Protection in the United States

Collection and processing in the United States

US privacy laws and self-regulatory principles vary widely, but generally require that a notice be provided or made available pre-collection (eg, in a privacy policy) that discloses a company's collection, use and disclosure practices, the related choices individuals have regarding their personal information, and the company's contact information.

Opt-in consent is required under certain circumstance to collect, use and disclose certain sensitive data, such as health information, credit reports, financial information, children’s personal information, biometric data, video viewing choices, geolocation data and telecommunication usage information.   

All states with comprehensive privacy laws, other than California, Florida, Iowa, and Utah require a business obtain consent from consumers to collect their sensitive data. California requires businesses to provide individuals a right to limit use of their sensitive data, Iowa requires individuals be provided a notice and opportunity to opt out of sensitive data processing for nonexempt purposes, and Utah requires individuals be provided a notice and right to opt-out of the collection of sensitive data.

The (federal) Children’s Online Privacy Protection Act (COPPA) requires verifiable parental consent prior to the collection, use, or disclosure of any personal information from children under 13. As of 2025, COPPA also requires separate, specific opt-in parental consent before companies can use children’s data for purposes of targeted advertising or disclose it to third parties. In addition, the CCPA requires that a business obtain explicit consent prior to the sale of any personal information about a consumer that the business has "actual knowledge" is less than 16 years old, and where the consumer is less than 13 years old, express parental authorization is required. (As discussed further below, the definition of "sale" under the CCPA is very broad and may include online advertising and retargeting activities, for example.). Amendments to the CCPA expanded this concept to include “sharing” of a minor’s personal information (meaning the disclosing of personal information for purposes of cross-contextual behavioral advertising).

Further, companies generally need to obtain opt-in consent prior to using, disclosing or otherwise processing personal information in a manner that is materially different than what was disclosed in the privacy policy applicable when the personal information was initially collected. The FTC deems such changes ‘retroactive material changes’ and considers it unfair and deceptive to implement a retroactive material change without obtaining prior, affirmative consent. Under the CCPA, which applies to individual and household data about California residents, businesses must, among other things:

  • At or before collection, provide a notice to consumers disclosing the categories of personal information to be collected. the purposes for collecting such information, whether such information will be sold or shared, and how long such information will be retained or the criteria to determine such period.
  • Post a privacy policy that discloses
    • the categories of personal information collected, categories of personal information disclosed for a business purpose, and categories of personal information "sold" and "shared" by the business in the prior 12 months 
    • the purposes for which the business collects, uses, sells, and shares personal information
    • the categories of sources from which the business collects personal information
    • the categories of third parties to whom the business discloses personal information and
    • the rights consumers have regarding their personal information and how to exercise those rights
  • Include a “do-not-sell-or-share my information” link on the business's website and page where consumers can opt-out of the sale and sharing of their personal information (if applicable)
  • Generally, provide at least two methods for consumers to submit CCPA requests to the business, including an online method (e.g., submission of an online form) and a toll-free number

Other California privacy laws (eg, the California “Shine the Light Law” and the California Online Privacy Protection Act) currently in force impose additional notice obligations, including:

  • Where any personal information is disclosed to a third party for their own marketing use, a specific notice about such disclosure (eg, in a company’s privacy policy) must be provided and accessible through a special link on their homepage. Further, the law gives California residents the right to request a list of the personal information and third parties to whom such information was disclosed for marketing purposes in the prior 12 months
  • Whether the company honors any do-not-track mechanisms

Under the comprehensive US state privacy laws, individuals have various qualified rights to request access to, correction, and deletion of their personal information and to “opt out” of sales, sharing, and the use of their personal information for purposes of targeted advertising or profiling. Further, these laws require businesses to conduct data protection or risk assessments before engaging in certain higher-risk processing activities, such as processing that relates to:

  • Certain unfair or intrusive profiling or targeted advertising purposes
  • Selling of personal data
  • Processing sensitive data

All states other than California and Utah require businesses to establish an internal process whereby consumers may appeal a controller’s refusal to take action on a privacy request and, where the appeal is denied, a method by which the consumer can submit a complaint to the state’s Attorney General.

Other states impose a wide range of specific requirements, particularly in the student and employee privacy areas. For example, a significant number of states have enacted employee social media privacy laws, and, in 2014 and 2015, a disparate array of education privacy laws. In addition, there are several sector-specific privacy laws that impose notice obligations, significantly limit permitted disclosures of personal information, and grant individuals the right to access or review records about the individual that are held by the regulated entity.

The US also regulates marketing communications extensively, including telemarketing, text message marketing, fax marketing and email marketing (which is discussed below).

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