The MCDPA becomes the sixth US privacy law to be passed in 2024 and follows a familiar framework found under similar privacy laws
Keshawna Campbell
Privacy Research Manager, OneTrust Center of Excellence
May 30, 2024
On May 24, 2024, the Minnesota Consumer Data Privacy Act (MCDPA) was signed into law by the state’s Governor. Minnesota becomes the sixth state to pass comprehensive privacy legislation in 2024 and the 19th overall. The MCDPA sticks to a similar set of requirements found under most US state privacy laws such as risk assessments, privacy notices, and a familiar set of consumer rights. However, in some instances the MCDPA sets out more prescriptive rules and also requires organizations to describe and document their data privacy policies. Read on to learn more about the MCDPA and its requirements.
The MCDPA will apply to organizations that conduct business in Minnesota or produce products or services that are targeted to residents of Minnesota. These organizations must also meet at least one of the following thresholds during a calendar year:
OR
The MCDPA outlines a set of consumer rights, similar to those found under many US state privacy laws. These include:
Consumers will also have the right to review the personal data used in profiling, question the result of the profiling, be informed of the reason that the profiling resulted in the decision, to be informed of what actions might have been taken to secure a different decision, and the actions to secure a different decision in the future.
Organizations must respond to consumer rights requests “as soon as feasibly possible” and within 45 days. In certain instances, there is the possibility for an additional 45-day extension.
The MCDPA defines consent as “any freely given, specific, informed, and unambiguous indication of the consumer's wishes by which the consumer signifies agreement to the processing of personal data relating to the consumer.”
In a similar fashion to other US state privacy laws, accepting general or broad terms, hovering over, muting, pausing, or closing content does not constitute valid consent. Additionally, consent is not considered valid if it has been obtained by using dark patterns.
Regarding sensitive data, organizations must operate on an opt-in basis and cannot process sensitive data without first obtaining valid consent from the consumer.
As with most privacy laws, organizations are required to provide consumers with a “reasonably accessible, clear, and meaningful privacy notice.” However, privacy notices under the MCDPA have stricter requirements than similar provisions found across US privacy laws. At a minimum a privacy notice under the MCDPA should include the following information:
Organizations that sell personal data to third parties, process personal data for targeted advertising, or engage in profiling must disclose this within its privacy notice. Furthermore, organizations must also provide “a clear and conspicuous method” for opting out of these processing activities such as a hyperlink labeled "Your Opt-Out Rights" or "Your Privacy Rights."
One unique feature of the MCDPA is the requirement for organizations to and maintain a description of the policies and procedures it has adopted to comply with the law. This description must include:
The MCDPA includes a requirement for organizations to conduct data privacy and protection assessment. Assessments are required for each of the following processing activities:
The MCDPA also outlines that assessments conducted in compliance with other, similar laws will satisfy thse requirements so long as the processing activity is similar in scope. Additionally, a single assessment may address multiple sets of comparable processing operations.
The MCDPA will be enforced by the Attorney General, that will be able to grant a 30-day cure period for organizations that are found to be in violation of the law. The cure period clause will expire on January 31, 2026. Penalties for non-compliance will range up to $7,500 per violation and the MCDPA contains no private right of action.
The MCDPA will become effective on July 31, 2025 giving organizations over 12 months to prepare. Organizations covered by the law should pay close attention to the information presented to consumers within their privacy notices as this is more nuanced under the MCDPA. Organizations will also need to prepare for a range of new consumer rights being afforded to individuals as well as risk assessment requirements and other contractual provisions between controllers and processors.
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