While small business owners respect the need for data privacy, lawmakers are currently considering a proposal that may restrict your ability to digitally advertise while also exposing you to frivolous lawsuit. The legislation being proposed includes:

• A harmful private right of action that may result in more frivolous lawsuits against businesses
• Language that limits a small business’ ability to digitally advertise

Members of the employer community are asking small business owners to sign on to a public letter that will go to House leadership.

The letter reads:

To Speaker Mariano and Members of the Massachusetts House of Representatives,

We, the undersigned, representing a cross-section of job creators in the Commonwealth, strongly oppose any data privacy legislation that will put our state at a competitive disadvantage. In particular, we have serious concerns regarding S.2516 and H.4746 An Act establishing the Massachusetts data privacy act.

Massachusetts employers support a consensus approach to data privacy that has been adopted in more than 20 states. That consensus model protects consumers without imposing undue harm on businesses, non-profits, and other organizations. S.2516 and H.4746, however, would significantly disrupt our operations, marketing, and efforts to improve our products and services.

Restricting the data that supports the digital marketing ecosystem will increase costs, reduce effectiveness, and make it harder for Massachusetts businesses of all sizes to reach the customers necessary to grow. It would hurt our ability to compete against employers in almost every other state, including all our neighbors, who are not subject to the same onerous constraints. Finally, it sends a clear message that Massachusetts does not want to be the state leading the digital economy, nor the home of future high-tech jobs.

The result of adopting legislation with the “data minimization” provisions as drafted, will be a clear and immediate disadvantage for Massachusetts businesses. Employers of all sizes will lose their ability to compete without access to the same advertising tools available to our out-of-state competitors. Massachusetts should not be making it more difficult and costly for in-state entities like ours to reach Massachusetts residents than out-of-state entities unencumbered by such outlier restrictions.

The legislation would also burden non-profit employers. The Commonwealth is home to one of the most vibrant non-profit communities in the country, and local organizations will experience significant difficulty reaching donors and sharing their message.

The Commonwealth is at a crossroads regarding economic competitiveness, and we cannot make it harder for employers to grow, invest, and do business in the state. We urge you not to adopt these controversial bills and work towards a data privacy framework that works for both Massachusetts consumers and employers alike.

Respectfully,

>>>> To sign the letter visit: Massachusetts Business Leaders Data Privacy Letter