The Minnesota Consumer Data Privacy Act (MCDPA), signed into law in 2024, is Minnesota’s bold step toward stronger consumer data rights and corporate accountability. Taking cues from other states like Colorado and Virginia, this law creates a framework for managing personal data while granting Minnesota residents new privacy protections.
With the Minnesota Consumer Data Privacy Act effective date set for July 31, 2025, businesses have less than a year to adapt. Here’s a detailed breakdown of what you need to know, including compliance requirements, consumer rights, and key differences from other Minnesota privacy laws.
For additional context, check out our prior articles on the Colorado Privacy Act and Maryland Online Data Privacy Act to see how Minnesota compares in the national privacy landscape.
What Is the Minnesota Consumer Data Privacy Act (CDPA)?
The Minnesota Consumer Data Privacy Act (MCDPA) governs how businesses collect, process, and share personal data of Minnesota residents. Its intent is clear: increase transparency and give consumers more control over their information.
The law applies to data controllers and processors that do business in Minnesota or target Minnesota residents. Importantly, it includes a Minnesota Consumer Data Privacy Act HIPAA exemption, ensuring that health information regulated under federal law is excluded. Similarly, data covered by GLBA, FCRA, and certain other frameworks falls outside its scope.
Does the Minnesota CDPA Apply to Your Organization?
The MCDPA applies if your organization:
- Controls or processes personal data for 100,000 or more Minnesota consumers annually, or
- Handles data of 25,000 or more consumers and derives 25% or more of revenue from the sale of personal data.
Exemptions include:
- Government entities.
- Data regulated under HIPAA and GLBA (confirming the HIPAA exemption).
- Publicly available and de-identified data.
If you fall under these thresholds, compliance is mandatory.
Minnesota Consumer Data Privacy Act Effective Date
The law takes effect on July 31, 2025, giving businesses time to implement governance frameworks—but that timeline is shorter than it appears, especially for organizations managing large-scale data operations.
New Consumer Data Rights in Minnesota
The MCDPA introduces robust rights for Minnesota residents, including:
- Access and Confirmation: Consumers can confirm whether their data is being processed and request access.
- Deletion: Individuals can request deletion of personal data.
- Correction: Consumers can correct inaccuracies in their personal data.
- Portability: Individuals have the right to obtain a copy of their data in a machine-readable format.
- Opt-Out: Residents can opt out of targeted advertising, data sales, and profiling for automated decisions that significantly affect them.
Quote from the legislation:
“Controllers shall not process personal data for targeted advertising without offering the consumer the ability to opt out.”
Key Minnesota CDPA Compliance Requirements
To comply with the Minnesota data privacy law, businesses must:
- Update Privacy Notices: Include details on what data is collected, how it’s used, and consumer rights.
- Establish Opt-Out Mechanisms: Provide clear tools for consumers to opt out of targeted advertising and data sales.
- Obtain Consent for Sensitive Data: MCDPA defines sensitive data as racial or ethnic origin, religious beliefs, health information, biometric identifiers, sexual orientation, and precise geolocation. Businesses must secure explicit opt-in consent before processing.
- Conduct Data Protection Impact Assessments: Required for high-risk activities like profiling or targeted advertising.
- Maintain Data Minimization and Purpose Limitation: Collect only what is necessary for stated purposes.
Remember, Minnesota also enforces its data breach notification law, which requires timely disclosure after security incidents.
Enforcement and Penalties
The Minnesota Attorney General is responsible for enforcement. Unlike California, the MCDPA does not provide a private right of action.
Penalties:
- Up to $7,500 per violation, plus injunctive relief in cases of severe noncompliance.
- A 30-day cure period exists initially, but it is not permanent.
How Does the MCDPA Compare to Other State Laws?
Minnesota’s law resembles Colorado’s in its emphasis on universal opt-out mechanisms, but it differs in scope and thresholds. For example:
- Stricter Definitions of Sensitive Data than Iowa or Utah.
- Mandatory impact assessments, similar to Maryland and Colorado.
- No exemptions for nonprofits, making it more inclusive than some states.
FAQ: Minnesota Consumer Data Privacy Act
Which businesses must comply with the Minnesota CDPA?
Any organization processing personal data for 100,000+ consumers annually or 25,000 consumers if a significant portion of revenue comes from data sales.
How is the Minnesota CDPA unique compared to other states?
It includes a broad definition of sensitive data and requires risk assessments for targeted advertising and profiling.
What is considered “sensitive data” under the MCDPA?
Race, religion, health information, biometric data, sexual orientation, and precise geolocation. Explicit consent is required for processing.
What are the potential penalties for non-compliance?
Civil penalties up to $7,500 per violation, enforced by the Attorney General.
What steps should businesses take to prepare?
Conduct data mapping, update privacy notices, implement opt-out tools, and prepare impact assessments for high-risk activities.
Final Thoughts
The Minnesota Consumer Data Privacy Act marks a major shift for businesses managing consumer data in the state. With its effective date fast approaching, organizations should:
- Audit current data collection and sharing practices.
- Update privacy policies for transparency.
- Build consent workflows for sensitive data.
- Develop systems for consumer rights requests.
For the legal text, visit the Minnesota Legislature, and for analysis, check Felhaber’s summary.
Want to see how this law compares nationally? Explore our coverage of the Colorado Privacy Act and Maryland Online Data Privacy Act for compliance strategies across states.
Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship. A qualified legal professional should be consulted for guidance specific to your organization’s situation and compliance obligations.
