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Financial Services Law Insights and Observations

Virginia enacts additional consumer data protections

Privacy/Cyber Risk & Data Security State Issues State Legislation Virginia Consumer Protection Act Virginia Consumer Protection VCDPA

Privacy, Cyber Risk & Data Security

On April 11, the Virginia governor signed legislation enacting additional amendments to the Virginia Consumer Data Protection Act (VCDPA). Both bills take effect July 1.

HB 714 (identical bill SB 534) expands the definition of a nonprofit organization to include political and certain tax-exempt 501(c)(4) organizations, thus exempting them from the VCDPA’s provisions. The bill also abolishes the Consumer Privacy Fund and provides that all civil penalties, expenses, and attorney fees collected from enforcement of the VCDPA shall be deposited into the Regulatory, Consumer Advocacy, Litigation, and Enforcement Revolving Trust Fund. Under Section 59.1-584, the attorney general has exclusive authority to enforce the law and seek penalties of no more than $7,500 per violation should a controller or processor of consumer personal data continue to violate the VCDPA following a 30-day cure period, or breach an express written statement provided to the attorney general that the alleged violations have been cured.

HB 381 amends VCDPA provisions related to consumers’ data deletion requests. Specifically, the amendment provides that a controller that has obtained a consumer’s personal data from a third party “shall be deemed in compliance with a consumer’s request to delete such data . . . by either (i) retaining a record of the deletion request and the minimum data necessary for the purpose of ensuring the consumer’s personal data remains deleted from the business’s records and not using such retained data for any other purpose . . . or (ii) opting the consumer out of the processing of such personal data for any purpose except for those exempted pursuant” to the VCDPA. 

As previously covered by InfoBytes, the VCDPA was enacted last year to establish a framework for controlling and processing consumers’ personal data in the Commonwealth. The VCDPA, which explicitly prohibits a private right of action, allows consumers to access their personal data; make corrections; request deletion of their data; obtain a copy of their data in a portable format; and opt out of targeted advertising, sale of their data, or “profiling in furtherance of decisions that produce legal or similarly significant effects concerning the consumer.”