As data privacy regulations evolve, small businesses in California, New York, and Pennsylvania face increasing pressure to comply with federal and state laws. In 2025, staying compliant is not just a legal obligation—it’s a necessity for maintaining customer trust and avoiding costly penalties. Here’s what our business and corporate law attorneys at William Cooper Law, P.C. want small businesses to know about data privacy compliance this year.
The Importance of Data Privacy Compliance
Data privacy laws are designed to protect individuals’ personal information from misuse or unauthorized access.
For small businesses, compliance ensures:
- Customer Trust: Demonstrating respect for data privacy builds loyalty and enhances your business’s reputation.
- Avoiding Penalties: Non-compliance can result in steep fines and legal consequences.
- Competitive Advantage: Businesses prioritizing data privacy often attract more customers and partners.
Key Data Privacy Laws in 2025
Small businesses must navigate a complex landscape of federal and state regulations.
Here are the primary laws to consider:
Federal Laws
- The Federal Trade Commission (FTC) Act: Prohibits unfair or deceptive practices, including those related to data privacy.
- The Children’s Online Privacy Protection Act (COPPA): Protects personal information collected from children under 13.
- The Health Insurance Portability and Accountability Act (HIPAA): Applies to businesses handling protected health information (PHI).
California state-specific laws include:
- California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA): These laws allow California residents to access, delete, and control their personal information. The CPRA strengthens enforcement mechanisms and expands the definition of sensitive personal information.
New York state-specific laws include:
- New York SHIELD Act: This act requires businesses to implement reasonable data security measures and applies to entities that collect private information of New York residents, regardless of size.
- NYC Biometric Privacy Law: Regulates collecting and using biometric data in New York City.
Pennsylvania state-specific laws include:
- Breach of Personal Information Notification Act: Mandates timely notification to affected individuals during a data breach.
- Emerging Legislation: Pennsylvania is exploring stricter data privacy laws to align with states like California and New York.
Steps for Small Business Data Privacy Compliance
Here’s how small businesses can ensure compliance in 2025:
- Understand Applicable Laws: Based on location, industry, and customer base, identify which federal and state laws apply to your business.
- Create a Privacy Policy: Draft a comprehensive policy outlining how your business collects, uses, and protects personal data.
- Secure Data: Implement robust data security measures like encryption, firewalls, and regular vulnerability assessments.
- Train Employees: Educate your team on data privacy best practices and ensure they understand their role in maintaining compliance.
- Respond to Data Subject Requests: Establish procedures for customer requests to access, delete, or modify their data, as required by laws like the CCPA.
- Prepare for Data Breaches: Develop an incident response plan to address potential breaches, including notifying affected individuals and regulatory authorities.
How William Cooper Law. Can Help
At William Cooper Law., our corporate and business law attorneys in California, New York, and Pennsylvania are well-versed in data privacy regulations.
We can:
- Conduct compliance audits to identify gaps in your data privacy practices.
- Draft and review privacy policies tailored to your business.
- Provide employee training on data protection and compliance.
- Represent your business in the event of regulatory investigations or data breaches.
Data privacy compliance is a critical responsibility for small businesses in 2025. Understanding the laws and taking proactive steps can protect your customers, reputation, and bottom line. Contact William Cooper Law today to learn how we can help your business stay compliant and thrive in the digital age.