Minnesota’s New Data Privacy Law: A Corporate Survival Guide from Your Friendly Neighborhood Boutique Firm
The Minnesota Consumer Data Privacy Act (MCDPA), effective July 31, 2025, is approaching, and it’s time to prepare. As a boutique law firm dedicated to personalized service with the expertise to protect your interests, we’re here to guide you through this new regulation. This overview will help ensure your organization is ready to comply, avoiding any surprises from the Attorney General’s office.
Understanding the MCDPA
Signed into law on May 24, 2024, by Governor Tim Walz, the MCDPA positions Minnesota as the 19th state to enact comprehensive data privacy legislation. It establishes clear rules for how businesses must handle Minnesotans’ personal information. Think email addresses, purchase histories, or even those targeted ads that seem to know your hobbies a little too well.
The law applies to businesses that either: (1) process personal data of 100,000 or more Minnesota consumers annually, or (2) derive at least 25% of their revenue from selling data and handle data from 25,000 or more consumers. If your organization fits these criteria, compliance is non-negotiable.
Key Provisions and Implications
The MCDPA empowers consumers with significant rights, including the ability to access, delete, or opt out of the sale of their personal data. Additionally, individuals can challenge automated profiling decisions such as those affecting loan or job applications, if they believe the process was unfair. These rights reflect Minnesota’s commitment to transparency and fairness.
For businesses, even smaller ones, there are responsibilities. While some exemptions exist, most companies cannot sell data without explicit consent. You’ll also need to maintain a detailed inventory of the data you collect and ensure your privacy policies are clear and accessible. Non-compliance risks enforcement actions from the Attorney General, which could lead to penalties.
Why Compliance Matters
Consider this scenario: It’s summer 2025, and a data breach exposes your customers’ information. Without proper safeguards, an MCDPA violation could escalate costs and damage your reputation. The law serves as a reminder to treat personal data with care and accountability.
Fortunately, if your business complies with other state privacy laws, such as those in Colorado or Virginia, you’re likely familiar with many of the MCDPA’s requirements. However, its unique elements, like the profiling provision, require careful attention to ensure full compliance.
Steps to Prepare
Start now to stay ahead. Conduct a thorough data inventory, update your privacy notices, and implement a streamlined process for handling consumer opt-out requests. Adopting a “privacy by design” approach not only ensures compliance but also demonstrates your commitment to protecting customer trust.
Postsecondary institutions have an extended timeline until 2029, providing additional time to align systems and processes. Use this period strategically to build a robust compliance framework.
Our Commitment
The MCDPA underscores Minnesota’s focus on safeguarding consumer data, offering businesses an opportunity to strengthen operations and enhance credibility. At Novel Law, we’re ready to assist you with tailored advice and practical solutions. Contact us to discuss how we can support your compliance efforts, because staying proactive is far better than addressing issues after the fact.