United States of America: Introduced Act Relating to the Registration of Business Entities that Qualify as Data Brokers

On 9 February 2023, An Act Relating to the Registration of Business Entities that Qualify as Data Brokers (HB 1799) was introduced in the Washington State House of Representatives. The Bill requires all data brokers, defined as entities which sell or license personal data, to file for an annual registration with the Department of Licensing, before being allowed to operate as data brokers. Upon registration, the entity must provide the Department of Licensing with information about the entity, as well as a declaration on whether individuals can opt out of either data collection, sale or licensing of personal data by the entity. The entity must also specify how the opt-out process works and pay a fee. Personal data may only be handled by data brokers without registration, among others, if the information is publicly available, the information is required for health or safety purposes or if the information is part of journals, books or other written work. The result of the registration process must be made publicly available by the Department of Licensing. If an entity does not follow the registration requirement, a civil penalty of a maximum of USD 500 can be sanctioned by the Department of Licensing or USD 500 for each day the violation continues. The maximum amount an entity can be fined in one calendar year is USD 10'000.