Skip to content

The Privacy
Patchwork Problem

Why Small Businesses Need a Federal Data Privacy Law

Conflicting state privacy laws are costing small businesses time and money. Our Privacy Patchwork Playbook breaks down the growing patchwork and why it’s time for Congress to act.

Learn More

Compliance a Nightmare

The Growing Patchwork
of State Laws: Compliance
a Nightmare

50 States, 50 Different Laws? Impossible for Small Businesses.

  • Over 20 states have or are enacting their own privacy laws, each with different rules, definitions, and enforcement mechanisms.
  • The volume of regulations is overwhelming with more than 1,000 pages (and growing).
  • These laws apply to any business collecting data from residents in those states, no matter where the business is located.
  • Even a small online shop or blog with a contact form may be required to comply with multiple, conflicting laws.

Cost of Compliance

A $50,000 Problem

The Cost of Compliance for Small Businesses

Privacy compliance is often designed with large corporations in mind, not small businesses.

  • Small businesses face thousands in legal and technical costs to comply with multiple state laws.
  • Fines for non-compliance can devastate a small business.
  • Constantly changing requirements across states add to the time, confusion, and risk.

Compliance Costs (Per Year)

Fines for Non-Compliance

The Solution

The Solution – A Federal
Privacy Law That Works
for Small Businesses

One Law. One Standard. A Fair Playing Field.

Key benefits of a National Privacy Law

Small businesses care about their customers’ privacy. But they need clear, consistent rules they can actually follow. A strong national privacy law would eliminate the confusion and high costs of the current state-by-state approach, providing small businesses with the clarity and certainty they need to operate efficiently.

One Rule for All Businesses
No more state-by-state confusion.

Lower Costs
A single compliance process instead of 20+.

Fewer Lawsuits
Less risk of predatory legal action.

Market Growth
Enable small businesses to serve customers in every state.

Momentum for a
Federal Solution
is Growing

Lawmakers recognize the need for a national privacy law that balances consumer protection with manageable compliance for small businesses. Senator Ted Cruz (R-Texas), Chair of the Senate Commerce Committee, has pointed to the Texas Data Privacy and Security Act (TDPSA) as a blueprint for federal legislation.

Unlike California’s more rigid privacy laws, the TDPSA aims to safeguard data while keeping compliance reasonable for small businesses. A federal law following this approach would provide clarity, consistency, and lower compliance costs for small businesses.

With momentum building, small businesses should prepare by adopting best practices aligned with business-friendly state laws like Texas’. A clear, fair federal privacy law is overdue.

It’s Time for Action

Congress must act now. Small businesses deserve a clear, fair, and national standard.