The Virginia Consumer Data Protection Act (CDPA) has become the next major U.S. state privacy law, after being signed into law by Virginia Governor Ralph Northam on Tuesday, March 2, 2021. The new law amends Title 59.1 of the Code of Virginia with a new chapter 52 (creating Code of Virginia sections 59.1-571 through 59.1-581).
Who is covered?
Per Section 59.1-572, the bill applies to “persons that conduct business in the Commonwealth or that produce products or services that are targeted to residents of the Commonwealth” who “control or process personal data of at least 100,000 consumers” or those who “control or process the data of at least 25,000 consumers” AND “derive at least 50% of their gross revenue from the sale of personal data.”
As defined in Section 59.1-571 the bill, “[c]onsumers” are any “natural person who is a resident of the Commonwealth acting only in an individual or household context. [Consumer] does not include a natural person acting in a commercial or employment context.”
Both covered entities and “consumers” are defined more narrowly than under other general data privacy laws such as the California Consumer Privacy Act (CCPA). For example, in contrast to the CCPA’s application to any California business with more than $25 million in annual revenue, the CDPA does NOT apply on a blanket basis to any Virginia business above a specified revenue threshold. To be covered under the CDPA, a person must always process the data of a minimum number of Virginia residents “acting only in an individual or household context.” Additionally, the exemption for individuals acting in “commercial” or “employment” contexts is a complete one, and does not have a “sunset” date where the exemption will expire like the California law.
Notably, the CDPA follows the model established under the EU General Data Protection Regulation and categorizes relevant businesses as “controllers” and “processors.” “Controllers” are “the natural or legal person that, alone or jointly with others, determines the purpose and means of processing personal data,” while “processors” are “a natural or legal entity that processes personal data on behalf of a controller.” Similar to the controller/processor relationship created by the GDPR and the business/service provider relationship created under the CCPA, a CDPA processor must be engaged by a controller via a written agreement that governs the processor’s data processing and provides specific instructions for the processing of data, as well as the nature and purpose of the processing.
Continue Reading Virginia Consumer Data Protection Act (S.B. 1392)