United States of America: Sustained Governor's veto of Vermont Act relating to enhancing consumer privacy (HB 121) including registration requirement for data brokers

On 17 June 2024, the Senate voted to sustain Governor Scott's veto of the Vermont Act relating to enhancing consumer privacy (HB 121). The Vermont House of Representatives voted to override the Governor's veto, but the Vermont Senate voted to sustain the veto. Hence, the veto stands. Governor Scott previously raised concerns over the proposed legislation due to its potential negative impact on businesses and non-profits through the "private right of action" provision and the First Amendment implications of the "Kids Code" provision aimed at child protection. He also critiqued the Bill's complexity and expansive scope, suggesting Connecticut’s data privacy law as a more balanced model. The Bill would have required data brokers, defined as a business that sells or licenses personal information to third parties, to register with the Secretary of State. In the registration process, data brokers would have been required to provide information such as contact details, opt-out processes for consumers, and details on data collection practices. If data brokers had failed to register, they would have faced a daily fine of USD 125 and additional penalties if they had provided false information.