Vermont Data Broker Registry and Breach Law
Unique requirement for data brokers to register with state and comply with specific security standards. First-in-nation data broker regulation.
| Jurisdiction | Vermont |
|---|---|
| Category | Privacy & Data Protection |
| Status | Active |
| Latest development |
Analysis
Key Requirements
- Annual Registration with the State Data brokers must register annually with the Vermont Secretary of State and pay a $100 fee. Registration requires disclosure of data collection, storage, and sale practices, opt-out policies, purchaser credentialing, and security breaches. Vermont Secretary of State – Data Broker Registration Vermont Data Broker Law – Text (H.764, Act 171) Vermont Attorney General – Data Broker Regulation
- Definition of Data Broker The law defines a data broker as any business that knowingly collects and sells or licenses to third parties the personal information of a consumer with whom the business does not have a direct relationship. Vermont Data Broker Law – Text (H.764, Act 171) Hunton Andrews Kurth – Vermont Enacts Nation’s First Data Broker Legislation
- Information Security Program Data brokers must implement and maintain a written, comprehensive information security program with appropriate physical, technical, and administrative safeguards to protect personal information. Vermont Data Broker Law – Text (H.764, Act 171) VeraSafe – Vermont Data Broker Regulation
- Annual Disclosure of Security Breaches Data brokers must report annually the number of security breaches experienced and, if known, the number of consumers affected. Vermont Data Broker Law – Text (H.764, Act 171) Alston & Bird – Vermont Passes New Data Broker Law
- Penalties for Non-Compliance Failure to register can result in a civil penalty of $50 per day, up to $10,000 per year, plus registration fees and other penalties. VeraSafe – Vermont Data Broker Regulation Vermont Data Broker Law – Text (H.764, Act 171)
Compliance Challenges
- Identifying Applicability Organizations often struggle to determine if their activities qualify them as a data broker under Vermont’s broad definition. Hunton Andrews Kurth – Vermont Enacts Nation’s First Data Broker Legislation VeraSafe – Vermont Data Broker Regulation
- Complexity of Data Mapping and Inventory Data brokers must inventory and map all brokered personal information, which can be challenging for organizations with large, complex data sets. Vermont Data Broker Law – Text (H.764, Act 171) Alston & Bird – Vermont Passes New Data Broker Law
- Developing a Comprehensive Security Program Smaller organizations may lack resources or expertise to implement the required written information security program. VeraSafe – Vermont Data Broker Regulation Alston & Bird – Vermont Passes New Data Broker Law
- Real Example: After the law’s enactment, several data brokers failed to register on time, resulting in public enforcement actions and penalties. Vermont Attorney General – Data Broker Enforcement VeraSafe – Vermont Data Broker Regulation
Implementation Best Practices
- Conduct a Data Broker Applicability Assessment Review business activities to determine if you meet Vermont’s definition of a data broker. Vermont Secretary of State – Data Broker Registration VeraSafe – Vermont Data Broker Regulation
- Establish a Data Inventory and Mapping Process Catalog all brokered personal information and data flows to support registration and breach reporting. NIST Privacy Framework IAPP – Data Mapping Guidance
- Develop and Document a Written Information Security Program Use established frameworks such as NIST SP 800-53 or ISO/IEC 27001 to guide security program development. NIST SP 800-53 ISO/IEC 27001
- Prepare for Annual Registration and Reporting Set calendar reminders and assign responsibility for timely registration and breach reporting. Vermont Secretary of State – Data Broker Registration Vermont Attorney General – Data Broker Regulation
- Leverage Compliance Tools Consider using privacy management platforms such as OneTrust or TrustArc to automate data mapping and compliance tracking. OneTrust – Data Mapping TrustArc – Privacy Management Platform
Recent Updates
- Vermont Data Privacy Act (VDPA) – 2024 In May 2024, Vermont passed the VDPA, expanding privacy protections and enforcement mechanisms. The VDPA introduces a limited private right of action (until 2029), enhanced enforcement by the Attorney General, and increased penalties for violations (up to $10,000 per unfair or deceptive act). Vermont General Assembly – VDPA Bill Status CookieYes – Vermont Data Privacy Act
- Effective Dates and Deadlines The original data broker registration and security requirements took effect January 1, 2019. The VDPA’s new provisions are effective as of July 1, 2025, with the private right of action sunset set for 2029. Vermont General Assembly – VDPA Bill Status CookieYes – Vermont Data Privacy Act
- Official Announcements Vermont Attorney General – Data Broker Regulation Vermont Secretary of State – Data Broker Registration
Related Regulations
- California Consumer Privacy Act (CCPA) CCPA also regulates data brokers, requiring registration with the California Attorney General and providing consumers with opt-out rights. California Attorney General – Data Broker Registry CCPA Text
- Gramm-Leach-Bliley Act (GLBA) GLBA imposes information security and privacy requirements on financial institutions, some of which may overlap with Vermont’s requirements for data brokers. Federal Trade Commission – GLBA
- General Data Protection Regulation (GDPR) GDPR applies to organizations processing personal data of EU residents, with broad security and transparency requirements similar to Vermont’s law. European Commission – GDPR
- Interaction and Overlap Organizations subject to multiple regimes must harmonize compliance efforts, particularly regarding data mapping, breach notification, and consumer rights. IAPP – Comparing US State Privacy Laws
Industry Impact
- Increased Compliance Costs Data brokers face new administrative and technical burdens, including registration fees, security program development, and annual reporting. VeraSafe – Vermont Data Broker Regulation Alston & Bird – Vermont Passes New Data Broker Law
- Greater Transparency and Consumer Trust The law increases transparency around data broker practices, potentially improving consumer trust but also exposing business models to greater scrutiny. Hunton Andrews Kurth – Vermont Enacts Nation’s First Data Broker Legislation IAPP – State Data Broker Laws
- National Precedent Vermont’s law has influenced other states, such as California, to adopt similar data broker registration and transparency requirements. California Attorney General – Data Broker Registry IAPP – Comparing US State Privacy Laws
Sources
- Vermont Secretary of State – Data Broker Registration
- Vermont Attorney General – Data Broker Regulation
- Vermont Data Broker Law – Text (H.764, Act 171)
- VeraSafe – Vermont Data Broker Regulation
- Hunton Andrews Kurth – Vermont Enacts Nation’s First Data Broker Legislation
- Alston & Bird – Vermont Passes New Data Broker Law
- Vermont General Assembly – VDPA Bill Status
- CookieYes – Vermont Data Privacy Act
- California Attorney General – Data Broker Registry
- CCPA Text
- Federal Trade Commission – GLBA
- European Commission – GDPR
- IAPP – Comparing US State Privacy Laws
- NIST Privacy Framework
- NIST SP 800-53
- ISO/IEC 27001
- OneTrust – Data Mapping
- TrustArc – Privacy Management Platform
- IAPP – State Data Broker Laws
- IAPP – Data Mapping Guidance
Recent developments
- — This update notes that Vermont’s amended data broker law includes a breach notice regime requiring notice to consumers within 45 days and preliminary notice to the Attorney General within 14 business days. It also says the law mandates a public, downloadable registry of registered data brokers and adds substantial penalties for noncompliance.[1] (source)
- — The same July update says Vermont’s law requires the Secretary of State to maintain a publicly accessible downloadable spreadsheet of all registered data brokers. It also notes that the law contemplates a study of a California-style accessible deletion mechanism, signaling possible future policy changes.[1] (source)
- — Vermont Governor Phil Scott signed H.B. 211 into law, significantly expanding the state’s data broker framework. The amendments add new registration disclosures, recipient-verification duties, and a dedicated breach-notice regime, with most operative provisions taking effect on 2027-01-01.[4] (source)
- — This analysis says the new law raises the annual registration fee from $100 to $900 and requires a $20,000 surety bond. It also highlights expanded due-diligence obligations before sharing brokered personal information and a data-broker-specific breach reporting requirement.[5] (source)
- — Sheppard reports that Vermont’s amendments broaden the definition of brokered personal information and require verification of recipients’ identity and intended use before disclosure. The article also notes new registration disclosures about sales or sharing with foreign actors, government agencies, law enforcement, and generative AI developers.[6] (source)
- — IAPP reports that Vermont’s law creates annual registration obligations for data brokers and sets the fee at $900. It also says sections covering data brokers take effect on 2027-01-01, while other provisions begin in 2026.[10] (source)
- — The law increases the penalty for failing to register to $200 per day, with separate penalties for incorrect filings and failure to correct omissions after notice. This is a significant enforcement escalation compared with Vermont’s prior regime.[4] (source)
- — Industry commentary describes the law as adding a KYC-like screening obligation for data brokers before they sell data. The article frames the change as a meaningful operational burden for businesses that buy and sell personal data without a direct consumer relationship.[5] (source)
- — Sheppard characterizes the amendments as a major expansion of Vermont’s existing law rather than a narrow update. The firm says the changes affect who is covered, what must be disclosed at registration, and how brokers must vet recipients of brokered data.[6] (source)
- — IAPP notes that Vermont also directed a study of a statewide deletion mechanism and established a Cybersecurity Advisory Council. These adjacent measures suggest the data broker changes are part of a broader state privacy and security policy package.[10] (source)
- — CalPrivacy advisory highlights enforcement focus on data brokers, urging assessment of "data broker" status even if not core business, ahead of 2026 deadlines.[3] (source)
- — California's DROP launch for data brokers risks huge fines for non-compliance with registration and deletion requests under expanded Delete Act rules.[8] (source)
Read the full guide to Vermont Data Broker Registry and Breach Law
Related regulations
- Vermont Data Privacy and Online Surveillance Act (Act 145) — Vermont, Upcoming, effective 2027-01-01
- UK Data Protection Act 2018 — United Kingdom, Active
- Texas Data Privacy and Security Act (TDPSA) — Texas, Active, effective 2024-07-01
- General Data Protection Law (LGPD) — Brazil, Active, effective 2020-09-18
- COPPA (Children's Online Privacy Protection Act) — United States, Active
- Oregon Consumer Privacy Act (OCPA) — Oregon, Active, effective 2024-07-01
- Montana Consumer Data Privacy Act (MCDPA) — Montana, Active, effective 2024-10-01
- New Hampshire Privacy Act (NHPA) — New Hampshire, Active, effective 2025-01-01
Put it into practice
- Generate the policy: Privacy policy generator (generatepolicy.com)
- Buy the policy pack: State Privacy Law Checklist (cyberpolicy.shop)
- Build it yourself: 2026 US Privacy Program Workbook (ciso.diy)
Browse all regulations · Compliance deadlines · Latest updates