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Indiana becomes seventh state to enact comprehensive privacy legislation

Privacy, Cyber Risk & Data Security State Issues State Legislation Indiana Consumer Protection COPPA

Privacy, Cyber Risk & Data Security

On May 1, the Indiana governor signed SB 5 to establish a framework for controlling and processing consumers’ personal data in the state. Indiana is now the seventh state in the nation to enact comprehensive consumer privacy measures, following California, Colorado, Connecticut, Virginia, Utah, and Iowa (covered by Special Alerts here and here and InfoBytes here, here, here, and here). The Act applies to any person that conducts business in the state or produces products or services targeted to residents and, during a calendar year, (i) controls or processes personal data of at least 100,000 Indiana residents or (ii) controls or processes personal data of at least 25,000 Indiana residents and derives more than 50 percent of gross revenue from the sale of personal data. The Act outlines exemptions, including financial institutions and data subject to the Gramm-Leach-Bliley Act, as well as covered entities governed by the Health Insurance Portability and Accountability Act.

Indiana consumers will have the right to, among other things, (i) confirm whether their personal data is being processed and access their data; (ii) correct inaccuracies; (iii) delete their data; (iv) obtain a copy of personal data processed by a controller; and (v) opt out of the processing of their data for targeted advertising, the sale of their data, or certain profiling. The Act outlines data controller responsibilities, including a requirement that controllers must respond to consumers’ requests within 45 days unless extenuating circumstances arise. The Act also limits the collection of personal data “to what is adequate, relevant, and reasonably necessary in relation to the purposes for which such data is processed, as disclosed to the consumer,” and requires controllers to implement data security protection practices “appropriate to the volume and nature of the personal data at issue” and conduct data protection assessments for processing activities created on or generated after December 31, 2025, that present a heightened risk of harm to consumers. Under the Act, controllers may not process consumers’ personal data without first obtaining consent, or in the case of a minor, without processing such data in accordance with the Children’s Online Privacy Protection Act. Additionally, the Act sets forth obligations relating to contracts between a controller and a processor.

While the Act explicitly prohibits its use as a basis for a private right of action, it does grant the state attorney general exclusive authority to enforce the law. Additionally, upon discovering a potential violation of the Act, the attorney general must give the controller or processor written notice and 30 days to cure the alleged violation before the attorney general can file suit. The attorney general may seek injunctive relief and civil penalties not to exceed $7,500 for each violation.

The Act takes effect January 1, 2026.