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Montana Becomes 9th State to Enact Data Privacy Law

privacy law

Effective October 1, 2024: Montana businesses that produce products or services targeted to Montana residents and either (i) control or process personal data of at least 50,000 consumers or (ii) control or process personal data of at least 25,000 consumers and derive over 25% of gross revenue from the sale of personal data must:

  • Respond to consumer requests within 45 days of receipt (may be extended an additional 45 days under certain circumstances).
  • Provide required information to consumers free of charge (up to once annually).
  • Authenticate requests using commercially reasonable efforts.
  • Establish a process for consumers to appeal any refusal to take action on a consumer request.
  • Provide a reason, in cases where a consumer request is denied, no later than 45 days from the date of the request.

There are several exemptions under the new law, including:

  • Certain government organizations
  • Nonprofit organizations
  • Institutions of higher education
  • Financial institutions and affiliates, or data subject to the federal GLBA
  • Covered entities or business associates governed by certain rules under HIPAA
  • Certain research data or employment-related information; and information governed by laws such as HIPAA, the Fair Credit Reporting Act or the Farm Credit Act.

The law also provides certain consumer rights. Specifically, consumers who are Montana residents will have the right to:

  • Confirm whether their personal data is processed.
  • Access their personal data.
  • Correct inaccuracies in their personal data.
  • Deletion of their personal data.
  • Portability of their personal data.
  • Opt-out of the processing of their personal data for purposes of (i) targeted advertising, (ii) the sale of personal data, or (iii) profiling in furtherance of decisions that produce legal or similarly significant effects concerning the consumer.

Click here for more information.

As Hire Image predicted in our Top Ten Background Screening Predictions for 2023, we will likely see similar privacy laws being passed this year, and these laws will undoubtedly impact background screening. Hire Image will continue to keep you updated as to the passage of additional privacy laws in other states.

Contact us if you have any questions about how this law may affect you or about your background screening processes in general.

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