As the movement towards state-level privacy laws continues to grow in the United States, Tennessee, and Montana are the latest states to pass comprehensive privacy legislation. These bills were approved by their state legislatures in April and are awaiting signatures from their respective governors to become law. The privacy law in Montana will go into effect on October 1, 2024, followed by Tennessee on July 1, 2025. Additionally, Montana has taken an extra step to address privacy concerns by proposing a ban on TikTok. Governor Greg Gianforte has also suggested expanding the bill to include all social media apps that share certain data with foreign adversaries, as reported by The Wall Street Journal.
However, the existing patchwork of state-level privacy laws already poses significant compliance challenges for the advertising industry. California’s privacy law, for instance, has been costly for companies to comply with, with some spending millions of dollars on compliance. Roy Wyman, an attorney at Bass, Berry & Sims, has written about the need for federal-level privacy legislation, noting that California tried to downplay the costs of compliance.
In addition, consumers are increasingly requesting companies to modify or delete their data, which limits marketers’ ability to scale customized ads. As more states pass comprehensive privacy laws, it could become even more challenging for the advertising industry to navigate the patchwork of regulations.
Montana’s privacy law takes privacy concerns a step further by proposing to ban TikTok. Governor Greg Gianforte has also requested to expand the bill to cover all social media apps that provide certain data to foreign adversaries, according to The Wall Street Journal. This move shows that some states are taking a proactive approach to protecting consumer data which could potentially lead to even more restrictions on data sharing in the future.
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