Tech8 views6 min read

US Data Privacy Laws Create Digital Borders for Internet Users

A growing number of US states are passing their own data privacy laws, creating a complex digital map that changes website functionality based on your location.

Patricia Ruiz
By
Patricia Ruiz

Patricia Ruiz is a technology and legal affairs correspondent for Crezzio, specializing in data privacy, digital ethics, and regulatory compliance. She reports on how evolving laws and technologies impact consumer rights and corporate practices.

Author Profile
US Data Privacy Laws Create Digital Borders for Internet Users

Internet users across the United States are increasingly encountering pop-up notices and disabled website features based on their location. This experience is not a glitch but a direct consequence of a growing number of states enacting their own data privacy laws, creating a complex digital landscape for both consumers and businesses.

Without a single federal data privacy standard, companies are forced to navigate a patchwork of state-specific regulations. This has led many websites to implement location-based restrictions, altering the user experience and limiting access to content for residents in states with stricter privacy rules, such as Washington and California.

Key Takeaways

  • A growing number of U.S. states have passed comprehensive data privacy laws, creating a complex regulatory environment.
  • The absence of a federal privacy law forces businesses to comply with multiple, often conflicting, state-level rules.
  • Consumers in states with strong privacy laws may experience altered website functionality, including disabled videos and social media integrations.
  • These laws grant consumers new rights, including the ability to access, delete, and opt out of the sale of their personal data.

The Rise of State-Level Privacy Legislation

The digital privacy landscape in the United States is undergoing a significant transformation, driven by individual states rather than the federal government. This movement began in earnest with the passage of the California Consumer Privacy Act (CCPA) in 2018, which set a new benchmark for consumer data rights in the country.

Following California's lead, a wave of other states has introduced similar legislation. As of 2024, more than a dozen states have enacted their own comprehensive privacy laws, including Virginia, Colorado, Utah, Connecticut, and Washington. Each law, while sharing common principles, has unique definitions, scopes, and enforcement mechanisms.

This state-by-state approach stands in contrast to the European Union's General Data Protection Regulation (GDPR), which provides a unified framework for all member states. The lack of a federal equivalent in the U.S. has created what many experts call a digital Balkanization, where a user's rights and online experience can change simply by crossing a state line.

What is a Comprehensive Data Privacy Law?

These laws typically establish a broad set of rights for consumers regarding their personal data. They regulate how businesses collect, use, and share information. Key components often include the right to know what data is collected, the right to have that data deleted, and the right to opt out of their data being sold or shared for targeted advertising.

How State Laws Affect Your Online Experience

The most visible impact for internet users is the appearance of consent banners and privacy management tools. Websites that serve a national audience must determine a user's location to present them with the correct disclosures and options required by local law.

For instance, a user visiting a news website from Washington may be shown a notice explaining that certain features are disabled to comply with the state's privacy act. These features often rely on third-party services that collect and process user data in ways that may require explicit consent under the law.

Commonly Restricted Features

Websites often take a cautious approach to compliance by disabling non-essential functions that involve data sharing. These can include:

  • Embedded videos from platforms like YouTube or Vimeo
  • Social media sharing buttons and embedded feeds
  • Third-party advertising networks that personalize ads
  • Some analytics and tracking tools

This creates a tiered internet experience. A user in a state without a privacy law might see a fully functional website, while a user in California or Washington sees a more limited version until they explicitly opt in to data sharing.

A Growing Majority is Covered

According to the International Association of Privacy Professionals (IAPP), state privacy laws now cover well over one-third of the U.S. population. This figure is expected to grow as more states consider and pass their own legislation.

New Rights for Consumers

While the altered web experience can be inconvenient, these laws provide consumers with powerful new tools to control their digital footprint. Most state privacy laws grant residents a core set of rights that were previously unavailable.

The fundamental rights usually include:

  1. The Right to Access: Consumers can request a copy of the specific personal information a business has collected about them.
  2. The Right to Deletion: Individuals can ask a company to delete their personal data, subject to certain exceptions.
  3. The Right to Opt-Out: This is a critical right, allowing users to direct a business not to sell or share their personal information.
  4. The Right to Correction: Consumers can request that a business correct inaccurate personal information it holds.

"These state laws represent a fundamental shift in the balance of power. For the first time, many Americans have legally enforceable rights over how their personal information is used by corporations."

Exercising these rights typically involves visiting a website's privacy policy page and looking for a link such as "Do Not Sell My Personal Information" or a comprehensive privacy request form.

The Business Challenge of Compliance

For businesses, this patchwork of state laws presents a significant operational and legal challenge. A company operating nationwide must track the nuances of each state's law and implement systems to manage compliance based on user location.

The primary difficulty lies in the differences between the laws. For example, the definition of "sale" of data can vary, as can the specific requirements for obtaining user consent. Some laws apply to businesses based on their annual revenue, while others are based on the number of consumers whose data they process.

Many national companies have opted to adopt the strictest standard, often California's, and apply it to all U.S. users. This simplifies compliance but may place more restrictions on the business than necessary. Others use geo-IP technology to tailor their website's behavior to each user's state, which is a more complex but precise approach.

Looking Ahead: The Push for Federal Legislation

The complexity and cost associated with complying with multiple state laws have intensified calls for a single, federal data privacy standard. Many business groups and consumer advocates agree that a unified federal law would be preferable to the current system.

However, progress on federal legislation has been slow due to disagreements on key issues, such as whether a federal law should preempt state laws and whether it should grant individuals the right to file private lawsuits against companies for violations.

Until a federal law is passed, consumers can expect to see more privacy pop-ups and location-based website changes as more states continue to enact their own digital privacy rules. Understanding your rights under your state's law is the first step toward navigating this evolving digital world.