Tennessee Senate Bill SB0663

Tennessee 2025-2026 Regular Session

• Introduced: 1/31/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 47, Chapter 18, relative to consumer data.

Impact

The bill's passage would require data controllers—entities that collect and process consumer data—to comply with opt-out requests from both consumers and their designated agents. Controllers are mandated to verify the identity of both parties before processing the opt-out requests, ensuring that the consumer's intentions are respected. Furthermore, by July 1, 2026, controllers must implement user-friendly opt-out features, including clear links on websites and supporting technologies, to facilitate consumers' ability to restrict targeted advertising and sales of their personal data.

Summary

Senate Bill 663, also known as SB0663, aims to amend Tennessee Code Annotated, Title 47, Chapter 18, which covers consumer data regulations. The bill introduces provisions that allow consumers to designate an authorized agent to act on their behalf to opt-out of the processing of their personal data. This step increases consumer agency over their data and emphasizes the importance of individual privacy in the digital environment. The bill reflects a growing trend across various states to enhance consumer rights regarding data usage and privacy protection.

Contention

Notably, the bill requires that the opt-out mechanisms must not unfairly disadvantage other controllers, which has raised questions about how this stipulation will be interpreted in practice. This provision aims to prevent any adverse effects on competition among data controllers while fostering a consumer-friendly environment. Critics may argue that such requirements could be challenging for smaller entities or start-ups that might lack the resources to implement the necessary changes compared to larger corporations.

Implementation

SB0663 establishes pivotal requirements for data privacy that align state laws with broader national conversations about consumer rights. The emphasis on opt-out preferences also positions Tennessee as a proactive contender in the realm of consumer data protection. As technology continues to evolve, laws like SB0663 will be essential in safeguarding consumer interests in an increasingly data-driven society.