When Vermont lawmakers reconvened in Montpelier for the current legislative session, they faced the formidable task of readdressing data privacy issues in an environment thick with lobbying pressures and contrasting interests. Last biennium, the Legislature had achieved a milestone with a comprehensive data privacy package—over 100 pages of provisions that boasted some of the strongest protections in the nation. However, Governor Phil Scott vetoed this landmark legislation, expressing fears that it would jeopardize local businesses and subject the state to costly legal challenges. An attempt to override his veto fell short in the Senate, leaving lawmakers to reconsider their strategy.

In light of these challenges, the architects of last year’s legislation have taken a more segmented approach this year. They introduced two principal bills: S.69, known as the “Kids Code,” aims to overhaul social media design for users under 18, while S.71 seeks to implement broader data privacy protections for all Vermonters. Recently, lawmakers celebrated the passage of the Kids Code, which aims to curtail the addictive features of platforms like TikTok and Instagram and impose strict privacy settings for minors. The bill, now waiting for the governor’s approval, has received vocal support, including from its lead sponsor, Senator Wendy Harrison, who stated, “It’s critical to support our kids.”

Despite the success of the Kids Code, the future of S.71 looks far less certain. Lawmakers decided to shelve the bill, largely due to the intense opposition stirred up by a well-orchestrated lobbying campaign from both local businesses and massive tech corporations. Representative Monique Priestley emphasised the overwhelming influence of these lobbyists, saying, “The public and even other members of the body don’t realise how extreme the lobbying tactics are on tech bills in the building.” This perception has encouraged some legislators to take a step back to further engage with constituents and local business owners before moving forward with any comprehensive data privacy legislation.

The proposed S.71 initially included provisions allowing consumers to sue companies for violating privacy laws, but this met with fierce resistance. Lobbyists from companies such as Meta, Apple, and Google collectively spent over $110,000 advocating against such measures in Vermont. Critics argued that the bill would create inconsistency and uncertainty for local businesses, potentially favouring trial lawyers over consumer welfare. Megan Sullivan, vice president of the Vermont Chamber of Commerce, articulated concerns over “untested and confusing definitions” in the proposed legislation, amplifying fears about unintended consequences.

In lieu of advancing S.71, the Legislature opted to explore a bill—S.93—that offers milder data protections without the contentious private right of action. However, this shift has not been well-received by advocates of stricter privacy measures. The decision to hold off on the comprehensive overhaul until the next legislative session was characterised by lawmakers as a necessary pause for further engagement and coalition-building, not just within Vermont but also with neighbouring New England states developing similar laws.

While the Kids Code appears to have gained considerable traction, its fate is also not without uncertainty. Governor Scott has expressed tentative support for the bill but remains cautious, echoing concerns about litigation risks that might arise from similar legislation in other states. Legal challenges from advocacy groups like NetChoice, which represents major tech firms, loom large. These groups have a history of contesting such laws in court, arguing that they infringe on First Amendment rights. Vermont lawmakers have stated that their Kids Code aims to navigate these legal pitfalls by focusing on the structural design of social media rather than restricting content.

As the summer recess approaches, Vermont legislators are gearing up for a critical period. They plan to engage more deeply with businesses and the public, hoping that collaboration will yield a more effective and widely supported data privacy framework to be reintroduced next year. The emphasis remains on balancing the legitimate privacy concerns of consumers with the operational realities faced by businesses, particularly small and mid-sized companies that form the backbone of the Vermont economy. The outcome of this ongoing dialogue will be pivotal as Vermont seeks to carve out its place on the national stage in the evolving conversation around digital privacy rights.

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Source: Noah Wire Services