Skip to content

The Privacy
Patchwork Problem

Why Small Businesses Need a Federal Data Privacy Law

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.