New York Small-Business Leaders Ask Legislators Not to Overregulate Data

ALBANY, N.Y. (Oct. 15, 2025) — New York small-business leaders yesterday warned New York legislators that overregulating basic consumer data would make it harder for small businesses to reach the right audiences and succeed. The group offered their comments following a hearing held by the New York Assembly Committees on Consumer Affairs & Protection and Science & Technology.

The small-business leaders highlighted particular concerns with two data-privacy bills, S8524 and A974, introduced earlier this year. Both bills proposed dramatic limitations on the collection and use of basic data, which the group said would make it much harder for small businesses in New York to advertise online, understand their customers, and make informed business decisions. 

“Data-powered ads keep my music school thriving, because they help me reach people who are likely interested in signing up for lessons,” said Dan Powers, founder and CEO of music school Real Brave in New York, N.Y. “I also rely on data-based analytics to help me understand which of my marketing tactics are working best — allowing me to make the smartest, most cost-effective marketing decisions. Lawmakers need to understand how important data is to small businesses trying to survive, grow, and compete.”

The small-business leaders also expressed concern about private right of action provisions, which they said would open the door to frivolous lawsuits that burden small businesses with costly legal fees. In addition, they noted that so-called small business “exemptions” from data restrictions often offer little relief, since most small businesses — and their digital partners like Shopify and Google Ads — easily exceed the proposed thresholds.

Dawn Kelly, owner of healthy-foods restaurant The Nourish Spot in Jamaica, Queens, gave her remarks in person at yesterday’s hearing, emphasizing the importance of data. “The ability to leverage non-personally identifiable customer data is a lifeline for small businesses like mine,” said Kelly. “New York small businesses are already navigating significant challenges every day. The last thing we need is overly strict data privacy laws that make it harder to grow and compete.”

Looking ahead to next year, the small-business leaders said they hope New York lawmakers will consider their perspectives and craft balanced data privacy laws that both protect consumers and allow businesses to grow and compete. 

“It’s crucial that lawmakers understand the small-business perspective so they can craft well-thought-out policy proposals,” said Anthony Edwards, Jr., co-founder and CEO of EatOkra in Brooklyn, N.Y. “I hope lawmakers continue this conversation with small-business leaders and create balanced data privacy regulations that help New York businesses thrive.”