Posted on February 14, 2025

In the dynamic digital landscape of 2025, data privacy and cybersecurity have emerged as some of the most critical—and complex—issues for businesses. Companies operating in Missouri, Kansas, and across the United States must navigate an increasingly intricate patchwork of state and federal privacy laws. These regulations vary widely in scope, consumer rights, and compliance requirements, creating significant challenges for businesses that collect and process customer data as part of their operations.

2025 Data Privacy Regulations

The year 2025 has already seen a surge in new state-level data privacy laws. On January 1 alone, four new laws took effect in Iowa (Iowa CDPA),  Delaware (DPDPA), Nebraska (NDPA), and New Hampshire (NHPA). Shortly after, on January 15, New Jersey’s Act (NJDPA) became effective. Later this year, additional laws will take effect in Tennessee (July 1), Minnesota (July 31), and Maryland (October 1), bringing the total number of U.S. states with comprehensive privacy laws to 20 by the end of 2025.

These laws share common themes—enhancing consumer rights, requiring opt-in consent for sensitive data processing, and mandating data protection assessments—but each introduces unique compliance challenges. For example, some states impose stricter obligations for businesses handling sensitive information like biometric or genetic data, while others extend these requirements to non-profits or specific industries. This fragmented regulatory environment makes compliance a daunting task for businesses operating across multiple jurisdictions.

The stakes are high: failing to comply with these regulations can result in severe financial penalties, reputational harm, and even legal action. As enforcement ramps up at both state and federal levels, businesses must adopt proactive strategies to stay ahead of these changes. Hiring experienced data privacy attorneys can provide invaluable guidance in navigating this complex landscape, ensuring compliance while protecting your business from unnecessary risks.

Importance of Complying with Data Privacy Regulations

In today’s digital age, complying with data privacy laws is essential for businesses to protect themselves from financial penalties, reputational damage, and loss of consumer trust. The stakes are higher than ever, with consumers increasingly prioritizing their privacy and governments enacting stricter regulations. Below are some key facts that underscore the importance of prioritizing data privacy compliance:

The Cost of Non-Compliance

• Non-compliance costs businesses an average of $14.82 million, nearly three times the cost of compliance.
• Regulatory fines can be staggering, such as penalties under GDPR (up to €20 million or 4% of global turnover) and U.S. laws like CCPA.
• Data breaches cost businesses an average of $4.88 million per incident, with even higher costs in industries like healthcare.

Consumer Trust is at Risk

• 94% of consumers say they would not buy from a company that fails to protect their data.
• 37% of customers have ended relationships with companies over data privacy concerns.
• Once trust is lost due to a breach or misuse, it’s incredibly difficult—and costly—to rebuild.

Reputational Damage is Long-Lasting

• High-profile breaches, like Yahoo’s, have shown how data mishandling can lead to financial losses (e.g., Yahoo’s acquisition price dropped by $350 million after its breach).
• Rebuilding a damaged reputation requires significant time and resources, diverting focus from business growth.

Consumer Awareness is Growing

• 76% of internet users believe companies must do more to protect their data.
• 60% of consumers think businesses misuse their personal information.
• Privacy-conscious customers are increasingly choosing companies with transparent and robust privacy practices.

Compliance Can Be a Competitive Advantage

• Companies that comply with privacy laws report improved customer relationships and operational efficiencies—79% say compliance has positively impacted their business.
• Strong data protection practices foster trust and loyalty, giving compliant businesses an edge over competitors.

State Data Privacy Laws

Missouri

Missouri does not yet have a comprehensive data privacy law. Missouri is actively pursuing stronger protections through proposed legislation for biometric data and consumer personal data.  However, businesses must comply with specific regulations:

1. Data Breach Notification: Missouri law mandates that businesses notify affected residents “without unreasonable delay” if personal information is compromised. If over 1,000 individuals are impacted, the Attorney General and consumer reporting agencies must also be informed.
2. Scope: The law applies to personally identifiable information (PII), such as names combined with Social Security numbers, financial account details, or medical information. However, notification is not required if the breach is unlikely to result in identity theft or harm. Delays are permitted if requested by law enforcement for investigative purposes.
3. Healthcare Data: Organizations handling medical records must comply with federal laws such as HIPAA, which imposes strict standards for safeguarding health information.
4. Privacy Notices: Businesses operating websites or mobile applications must provide clear privacy notices outlining:
   Categories of personal information collected, whether the information will be sold or shared and the data retention period.
5. Penalties: The Violations could result in civil penalties of up to $2,000 per day and other remedies sought by the Missouri Attorney General.

Kansas

Similiarly, Kansas lacks a comprehensive data privacy law but has implemented important protections:

1. Data Breach Notification: Businesses must notify individuals “in the most expedient time possible” if their personal information is compromised.
2. Scope: The law applies to unencrypted and unredacted personally identifiable information (PII), such as names combined with Social Security numbers, financial account details, or medical information. However, notification is not required if the breach is unlikely to result in identity theft or harm. Delays are permitted if requested by law enforcement for investigative purposes.
3. Kansas Consumer Protection Act (KCPA): This law allows consumers to bring legal claims against businesses for deceptive practices, including those involving data misuse.
4. Kansas No-Call Act: Protects consumer privacy by regulating telemarketing activities and establishing a no-call list.
5. Penalties: The Kansas Attorney General enforces the law and individuals can bring claims under the KCPA for unfair practices such as mishandling of personal information or failing to disclose data collection practices.
6. Prohibition on Biometric Data Collection: School districts cannot collect biometric data (e.g., fingerprints or facial scans) from students without written consent from parents or legal guardians.

The Growing Patchwork of U.S. State Data Privacy Laws

In 2025 there is a new wave of state data privacy laws, creating a fragmented regulatory environment for businesses:

• California Consumer Privacy Act (CCPA) & California Privacy Rights Act (CPRA):
  • Passed in 2018 and known as the strictest data privacy law in the country.
  • Applies to a business that collects personal information about consumers and outlines specific rights consumers have.
  • 2023 amendment grants consumers rights to access, delete, and correct their personal information.
  • Imposes stricter rules on sensitive data use and disclosure.
  • Requires businesses to limit data retention to what is “necessary and proportionate.”
• Virginia Consumer Data Protection Act (VCDPA):
  • Mandates risk assessments for high-risk activities like targeted advertising.
  • Allows consumers to opt out of profiling or the sale of their data.
• Colorado Privacy Act (CPA):
  • Mandates opt-in consent for processing sensitive data.
  • Requires businesses to disclose when consumer data will be sold.
• Texas Data Privacy and Security Act (TDPSA):
  • Provides broad consumer rights while exempting small businesses from compliance.
• Minnesota Consumer Privacy Act (effective July 2025):
  • Introduces universal opt-out mechanisms for targeted advertising.
  • Classifies children’s data as sensitive personal information.
• Maryland Privacy Law (effective October 2025):
  • Broadens sensitive personal data categories to include genetic data, sexual orientation, and more.
  • Prohibits processing minors’ data for targeted advertising without explicit consent.
• As of January 1, 2025, four new state privacy laws came into effect:
• • Iowa’s Act relating to Consumer Data Protection (Iowa CDPA)
  • The Delaware Personal Data Privacy Act (DPDPA)
  • The Nebraska Data Privacy Act (NDPA)
  • New Hampshire’s Act relative to the Expectation of Privacy (NHPA)

Shortly after, on January 15, 2025, New Jersey’s Act Concerning Online Services, Consumers, and Personal Data (NJDPA) became effective. In the middle of 2025, Tennessee Information Protection Act (TIPA) and the Oregon Consumer Data Privacy Act (OCDPA) to non-profit organizations will take effect. Later in the summer, the Minnesota Consumer Data Privacy Act (MNDPA) will come into force on July 31, 2025 and the Maryland Online Data Privacy Act (MODPA) will take effect on October 1, 2025.

Currently, there are at least 20 U.S. States which have enacted state privacy laws that have varying effective dates and specific requirements which underscores the complexity businesses face in maintaining compliance across different jurisdictions. Companies must navigate the intricate web of regulations, each law having its own nuances in terms of consumer rights, data protection assessments, and enforcement mechanisms. The complexity of these regulations highlights the importance for hiring a data privacy attorney with knowledge and experience in this area. 

Federal Data Privacy Laws Every Business Should Know

While the U.S. lacks a single comprehensive federal privacy law, several sector-specific laws govern data privacy:

Health Insurance Portability and Accountability Act (HIPAA):

Protects medical records by setting national standards for healthcare providers. Limits the use and disclosure of PHI without patient consent. Grants patients rights to access, amend, and restrict the use of PHI and requires safeguards (technical, physical and adminstrative) to protect ePHI. If there is a breach, must notify individuals and the HHS. Penalties for non-compliance can range between $50,000 up to $1.5m. 

Gramm-Leach-Bliley Act (GLBA):

Requires financial institutions e.g. banks, insurance companies, investment firms, etc., to explain their data-sharing practices and secure sensitive financial information. Must implement security programs to protect customer data and must provide an opt-out option for sharing of certain information. Fines up to $100,000 per violation and $10,000 per individual.   

Children’s Online Privacy Protection Act (COPPA):

Mandates parental consent for collecting personal information from children under 13. Applies to Website operators and online services directed at children. Requires parental consent, must maintain clear privacy policies detailing data collection practices and limites the retention of childen data for “as long as necessary.” Penalties can be up to $43,792 per violation.  

Telephone Consumer Protection Act (TCPA):

Protects consumers from unwanted telemarketing calls and texts, with recent amendments enhancing consumers’ ability to revoke consent. Requires compliance to National Do Not Call Registry rules, restricts use of autodial and prerecorded messages.Fines up to $500 per call or text which is increased to $1,500 for willful violations.  Consumers can bring a civil action for violations of this law. 

Additional Federal laws include the following:

• Family Educational Rights and Privacy Act (FERPA): Applies to educational institutions and protects the privacy of student education records.  
• Fair Credit Reporting Act (FCRA): Applies to credit reporting agencies and businesses using consumer credit reports to ensure the credit report are accurate.  
• Fair and Accurate Transactions Act (FACTA):Applies to businesses that handle consumer credit information, (credit reporting agencies, financial institutions, and merchants) and provides free credit reports, identity theft protections and requires merchants to securly handle consumer documents.
• Electronic Communications Privacy Act (ECPA): The ECPA applies to emails, phone calls, text messages and other electronic communications and protects them from unauthorized access, disclosure or interception.
• Video Privacy Protection Act (VPPA): The VPPA protects unatuhorized disclosure of video rental or streaming history from unauthorized disclosure.
• Driver’s Privacy Protection Act (DPPA): Restricts the use of personal information obtained from state motor vehicle departments.
• Deceptive Mail Prevention and Enforcement Act (DMPEA): Deals with sweepstakes and contest mailings as well as mailing of fake checks and government documents.  Enforced by Postmaster General.
• Computer Fraud and Abuse Act (CFAA): Addresses cybersecurity concerns by not only targeting unauthorized computer access but also requiring businesses to clearly define user permissions and implement robust security measures.
• Federal Trade Commission Act (FTC): Empowers the FTC to take action against unfair or deceptive practices involving consumer privacy.

These laws provide foundational protections but leave significant gaps that state laws aim to address.

Need for Guidance

Given this patchwork of laws, it is strongly recommended that businesses seek guideance from attorneys with experience with data privacy issues to adapt to the increasingly challenging regulatory landscape. These legal professionals can provide invaluable assistance in several key areas:

1. Comprehensive Compliance Strategy: Data privacy attorneys can help develop a holistic approach to compliance that addresses the requirements of multiple state laws simultaneously.
2. Risk Assessment: Data Privacy lawyers can conduct thorough risk assessments to identify potential vulnerabilities in your current data handling practices.
3. Policy Development: Data Privacy attorneys can assist in crafting robust privacy policies and procedures that align with the various state laws’ requirements.
4. Training Programs: Data Privacy lawyers can help design and implement employee training programs to ensure organization-wide compliance.
5. Ongoing Monitoring: As data privacy laws continue to evolve, these attorneys can keep your business informed of new developments and help adjust your compliance strategies accordingly.
6. Incident Response Planning: In the event of a data breach, having a data privacy attorney on hand can be crucial for managing the response and mitigating potential legal consequences.
7. Regulatory Interactions: Should your business face regulatory scrutiny, a data privacy attorney can provide invaluable representation and guidance in interactions with state authorities.

Lessons Learned: Real-World Examples

Lesson #1: Ignoring Compliance Can Be Costly

A major retailer recently faced a $10 million fine after failing to notify customers promptly about a data breach that exposed sensitive payment information. This case underscores the importance of adhering to state-specific breach notification laws like those in Missouri and Kansas.

Lesson #2: Transparency Builds Trust

A healthcare provider implemented clear privacy notices explaining how patient data was used under HIPAA guidelines. This transparency not only ensured compliance but also improved patient trust—leading to increased customer retention.

Lesson #3: Vendor Oversight Is Critical

An e-commerce company suffered reputational damage when a third-party vendor mishandled customer data during processing. Businesses must ensure that vendors adhere to robust privacy standards through contractual agreements and regular audits.

Lesson #4: Failing to Adapt Can Lead to Legal Battles

A social media platform faced lawsuits under California’s CPRA for failing to honor consumer opt-out requests for targeted advertising. This highlights the need for businesses to adapt quickly as new state laws take effect.

What Businesses Should Be Careful Of

1. Cross-State Compliance: Companies operating in multiple states must navigate varying requirements, such as opt-out mechanisms or sensitive data restrictions.
2. Transparency: Failing to provide clear privacy notices or obtain proper consent can lead to regulatory scrutiny.
3. Privacy Impact Assessments: Many new state laws require businesses to document these assessments before processing sensitive data or engaging in targeted advertising.
4. Children’s Data: With stricter rules around minors’ data in states like Maryland and New Jersey, businesses must obtain affirmative consent before processing such information.
5. Data Minimization: Collecting unnecessary or excessive personal information increases risks of breaches and legal violations.
6. Vendor Management: Ensure third-party vendors adhere to the same high standards for protecting shared consumer data.

What Businesses Should Stop Doing

1. Over-Collecting Data: Collecting unnecessary personal information increases risks of breaches and non-compliance.
2. Ignoring Consumer Rights: Even in states without comprehensive laws, respecting consumer rights builds trust and reduces legal exposure.
3. Neglecting Security Measures: Weak cybersecurity can lead to breaches that trigger costly penalties under both state and federal laws.
4. Retaining Data Indefinitely: Implement clear policies for securely disposing of outdated or unnecessary data.

Potential Issues if Businesses Are Not Careful

Failing to prioritize data privacy can result in:

• Legal Penalties: Non-compliance with state or federal laws can lead to fines or lawsuits.
• Reputational Damage: A single breach can erode customer trust permanently.
• Operational Disruptions: Breaches often require costly investigations and system overhauls.

Best Practices for Businesses

1. Partner with a data privacy attorney to develop a policy and procedure for data collection, storage and transmission.
2. Conduct regular data privacy investigations.
3. Implement robust security measures including multi-factor authentication and encryption for data at rest and in transit.
4. Purge outdated or unnecessary data.
5. Continuously train employees.
6. Ensure third-party vendors comply with your privacy standards.

Conclusion

As this patchwork of data privacy laws continues to expand, the expertise of data privacy attorneys becomes increasingly valuable. Their knowledge and experience can help businesses navigate this complex regulatory environment, mitigate risks, and maintain compliance across multiple jurisdictions. Contact us today.  By partnering with experienced legal professionals, businesses can turn this compliance challenge into an opportunity to build trust with consumers and gain a competitive edge in the marketplace.