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The Nebraska Data Privacy Law (NDPA) is a comprehensive regulatory framework designed to protect the personal information of Nebraska residents by establishing clear guidelines for how businesses and organizations collect, process, and share data. It aims to enhance consumer privacy and enforce stronger data security measures. The law officially went into effect on January 1, 2025, marking a significant step forward in the state's commitment to data protection.
The NDPA applies to any business, organization, or governmental entity that collects, processes, or stores personal data of Nebraska residents, but it also establishes specific thresholds to determine its applicability.
For example, similar to other state privacy laws, the NDPA is triggered if an entity controls or processes personal data of 100,000 or more Nebraska consumers, or if it derives over 50% of its gross revenue from the sale of personal data and controls or processes the personal data of 25,000 or more Nebraska consumers.
This means that even companies located outside Nebraska must comply with the law if they meet these criteria and handle data of Nebraska residents.
Here are some possible reasons for penalties:
- Failure to Obtain Proper Consent and Maintain Transparency: If a business doesn't provide clear, accessible privacy notices or fails to secure explicit, informed consent from individuals before collecting or processing their data, it can lead to penalties.
- Inadequate Data Security Measures: Penalties can be imposed when organizations don't implement robust technical and organizational safeguards. If a business’s security measures are insufficient and result in unauthorized access, data breaches, or data leaks, it is considered non-compliant with the NDPA’s requirements for protecting personal information.
- Non-Compliance with Data Subject Rights: The NDPA grants individuals specific rights over their personal data, including the right to access, correct, or delete it.
Under the NDPA, the party responsible for making decisions about and controlling personal data is the one held liable for penalties. This means that if your business or organization collects or processes personal data of Nebraska residents and fails to follow the law, you could face fines or other penalties. It’s not just your main company that can be held responsible - if you work with third-party vendors or service providers who handle this data on your behalf, they can also be held liable. Essentially, whoever is in charge of how the data is used is accountable under the NDPA.
The NDPA outlines significant penalties for non-compliance, but it doesn't specify an exact fine sum in its text. The fines can be substantial and are determined based on the severity of the violation and other factors.
Here are the top three most severe penalties:
- Fines: While the law does not state a fixed fine amount, fines can be considerable. The exact figure depends on the nature and seriousness of the violation, with the regulatory authority having the discretion to set the penalty.
- Mandatory Corrective Actions: In cases of non-compliance, you could be ordered to implement immediate corrective measures, which may involve costly overhauls of your data practices, security upgrades, or revisions to your privacy policies.
- Suspension of Data Processing: In severe cases, the NDPA allows for the temporary or permanent suspension of your ability to collect or process personal data of Nebraska residents, potentially halting business operations and causing significant disruption.
Improve the effectiveness of your compliance strategy now.
Download checklistUnder the NDPA, you obtain consent by clearly informing individuals about what personal data you collect, how you'll use it, and who you might share it with - all in plain, easy-to-understand language. Then, ask them to actively agree by checking a box or clicking a button; pre-ticked boxes or assumed consent won't work. This way, individuals know exactly what they're signing up for and can change their mind later if they want to withdraw their consent.
The NDPA is enforced by the Nebraska Department of Justice. They make sure businesses follow the rules by investigating complaints, conducting audits, and reviewing data practices. If they find violations, the department can issue penalties like fines or require changes to business practices to improve data protection.
To make your business compliant with the NDPA, start by figuring out what personal data you collect and why. Update your privacy policies to clearly explain your data practices in plain language, and set up a system where people can easily give (and later withdraw) their consent - usually through an opt-in method. Make sure you have strong security measures in place to protect the data, and set up simple processes for handling requests like data access, corrections, or deletion. Regularly check and update your practices to ensure you're meeting the NDPA requirements.
Shopify merchants can streamline compliance by leveraging tools like Consentmo, which offers automated solutions for managing cookie consent, generating privacy notices, and processing data subject requests.