SIIA Says Vermont Data Broker Bill Violates Constitution

A Vermont privacy bill about data brokers is unconstitutional, said the Software & Information Industry Association on a blog and letter this week to state senators. The House-passed HB-764, pending in the Senate, would mandate security standards for data brokers and require them to register annually with the Vermont secretary of state to “provide information about their data collection activities, opt out policies, purchaser credentialing practices, and security breaches.” The bill “violates both the First Amendment and the Commerce Clause of the U.S. Constitution,” SIIA General Counsel Chris Mohr said in a Tuesday statement. “It requires anyone who sells so-called ‘personal information’ to register with the state and comply with a slew of security requirements. The bill does nothing to protect privacy and will only burden Vermont’s existing technology companies and deter others from setting up shop there.” The Vermont Public Interest Research Group in February supported the bill as “an important step to give Vermonters better protections and more control when it comes to their sensitive information.”