Virginia Governor Signs Law Banning Sales Of Location Data

Virginia Governor Abigail Spanberger on Monday signed a privacy law that will prohibit businesses from selling data that can pinpoint people's locations within a 1,750-foot radius.

The measure (SB 338), introduced by state Senator Russet Perry, will take effect in July.

Two other states -- Maryland and Oregon -- also prohibit companies from selling precise location data, but most states with privacy laws allow such sales if consumers sent.

The ad industry groups Association of National Advertisers, American Association of Advertising Agencies, American Advertising Federation and Digital Advertising Alliance opposed the Virginia bill, arguing in a veto request that it would "unnecessarily disrupt data practices that allow companies to reach consumers with relevant content and advertising."

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The groups added that a 2021 Virginia privacy law "already safeguards location data."

That law allowed businesses to sell "precise" location data if consumers affirmatively consented. By contrast, the new law outright bans such data sales.

The ad organizations wrote that a total ban would "have a chilling effect on commerce, and deprive consumers of the ability to choose to learn about goods and services near to them through relevant marketing."

The advocacy group Consumer Reports cheered news of the bill's approval.

“We hope this law will serve as an impetus for more states to do the same, because ultimately, all consumers deserve these protections," Matt Schwartz, senior policy analyst at Consumer Reports, stated Tuesday.

Consumer Reports and the Electronic Privacy Information Center previously argued in a letter to legislators that businesses don't need precise location data "to effectively advertise."

"Some types of data are simply too sensitive to allow commercial entities to buy and sell," the groups wrote. "Granular data about our everyday comings and goings -- which reveals the location of our homes, friends’ homes, places of worship, political causes we support, medical services we seek out, and more -- is clearly one of those."

The Electronic Privacy Information Center added in a separate letter to Virginia lawmakers that the bill "would put a stop to some of the most harmful abuses of our personal data happening today."

That group specifically noted that Immigrations and Customs Enforcement is exploring how it could use ad-tech data for investigations, and has reportedly purchased access to a host of tracking and monitoring tools.

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