Massachusetts enacts landmark ban on sale of precise location data
New state legislation applies to entities processing data for over 100,000 consumers, affecting both major tech firms and startups amid a fragmented US regulatory landscape.
Massachusetts lawmakers have unanimously passed the Consumer Data Privacy Act, a significant legislative move that bans companies from selling users' precise location data and restricts the sale of other sensitive personal information without explicit consent. The bill, which received a 146-0 vote in the House after advancing through the Senate in September, is now expected to be signed into law by the state governor, though the exact timing remains unclear.
The legislation applies to entities processing the personal data of more than 100,000 consumers, a threshold that impacts both medium-sized startups and major technology firms. By blocking the sharing or sale of sensitive information without user permission, the law covers biometrics such as health data and genetic information, precise geolocation data, and markers regarding religion, immigration status, and sexual orientation.
The ban on location data applies to both residents and visitors within the state, effectively prohibiting the sale of such data across Massachusetts. This measure addresses long-standing concerns regarding data brokers who have historically relied on app developers selling user location data, which is then repackaged and sold to various buyers, including stalkers, governments, and militaries.
The passage of the bill highlights the ongoing efforts by US states to fill the void left by the lack of a nationwide privacy law. While the Biden administration previously attempted to ban the sale of sensitive Americans’ data at the federal level, those efforts were scrapped by the Trump administration. Consequently, states have developed a patchwork of privacy rules, with Massachusetts now positioning itself as a leader in curbing digital surveillance and protecting personal privacy.
Privacy groups, including the ACLU and Fight for the Future, have praised the legislation as a landmark step in addressing abuses by the technology, advertising, and social media industries. Local media outlets WBUR and the Lynn Journal reported that lawmakers worked across party lines, viewing privacy as a fundamental right for state residents. The operational impact on startups and advertising companies remains to be seen, though broad effects are anticipated.
