Bill both embraced, planned by small business community

By Michael Bielawski

Both the proponents and the opposition of a bill dealing with data privacy spent the weekend making their final arguments before the policy meets its fate during the veto session.

The bill is H. 121, it’s been passed by the House and Senate but vetoed by the governor. The bill’s stated purpose is to “afford data privacy protections to Vermonters.”

During a veto session, both the House and Senate chambers must vote two-thirds in support of a bill for it to override the governor’s veto.

Opponents say passing it will hurt small business

Writing a statement for the opposition is Erin Sigrist, President of the Vermont Retail & Grocers Association. Co-signers to the statement include the Central Vermont Chamber of Commerce, the Vermont Independent Restaurants, and more. In all, 11 organizations signed in addition to the Association.

“H.121 goes far beyond these measures [other states’ privacy laws] and would make it harder for businesses to serve their Vermont customers than to serve those in other states,” Sigrist wrote.

She further stated that when her side tried to give input, lawmakers may have been dismissive and even intimidating.

“Unfortunately, when Vermont businesses tried to provide input throughout this policy-making process, they were routinely dismissed by some in the legislature as misinformed or as being influenced by big tech,” Sigrist wrote.

She continued, “This is an inaccurate characterization. Further, it has had a chilling effect on the ability of Vermont businesses to engage in the legislative process for fear of being villainized and of ramifications for their businesses.”

Another point she made was that these new privacy protections could make it more difficult to issue for example rewards programs to consumers.

“H.121 could also spell the end of loyalty and other programs that many Vermonters benefit from. These programs, like airline miles, hotel and credit card points, multi-mountain ski passes, savings on gasoline, and more, are all at risk. Under the new law, it would be too difficult, expensive, and risky for businesses to continue offering these programs and benefits to Vermonters,” she wrote.

Proponents say not passing it will hurt small businesses

Rep. Michael Marcotte, R-Coventry, Chair of the Vermont House Committee on Commerce & Economic Development, wrote a piece advocating for the bill cosigned by the committee’s Vice Chair, Rep. Stephanie Jerome, D-Brandon; and Clerk, Rep. Monique Priestley, D-Bradford.

“Every time you are connected to the Internet, you’re being tracked. What you search for online, your browsing history, what you buy, and your location are being collected by companies on the other side of your screens, smart speakers, and even your car. Your data is big business,” he wrote.

It continues, “Big Data has been active in our own backyard this legislative session, fighting to stop you from getting the privacy and security protections you deserve to the tune of $1 million in lobbying expenditures.”

Similar to the bill’s opponents, the advocates are claiming to be protecting Vermont’s business community. He wrote, “This bill will put Vermont businesses at a serious disadvantage, making them less competitive than businesses in other states, raising their marketing and compliance costs, and exposing them to potential legal battles. H.121, as passed by the Legislature, is unworkable. It threatens the survival of many local businesses and would put a serious dent in the Vermont economy.”

The governor mentions other states have privacy bills that are less restrictive on businesses’ ability to operate which he may be more inclined to support. The proponents however warn against what could happen if no policies are adopted.

“Many data companies operate in the shadows using tracking cookies in websites and secret pieces of code in smartphone apps. Shadowy companies known as data brokers collect, buy, slice and dice, and resell your data. There are over 500 data brokers active in the U.S., secretly collecting and reselling our data – which right now, is completely legal,” he wrote.

Parental rights undermined?

A portion of the bill’s language as passed by the House and Senate seems to imply that parents of children would no longer be allowed to use any kind of tracking software to know where their children are when out at night or what they are doing online.

The language on page 315 states that a parent shall not “monitor the online activity of a minor consumer or to track the location of the minor consumer without providing a conspicuous signal to the minor consumer when the minor consumer is being monitored or tracked.”

The author is a writer for the Vermont Daily Chronicle

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