NSBA has consistently called for a unified federal approach, rather than the development of a patchwork 50-state system we are now seeing develop.
NSBA recently joined a number of small-business organizations and Chambers of Commerce in a letter to Congress urging policymakers to avoid adding to the growing patchwork of state privacy laws passed and proposed in recent years.
Data privacy has been a huge issue looming before small-business owners with almost nothing in terms of clear, concise national guidelines or directives. A number of states are now developing their own rules governing internet privacy, even though digital information flow doesn’t stop at state lines.
For example, consumer privacy laws in California are different than those in New Jersey, and the conflicting, duplicative nature of these requirements carry costly and time-consuming compliance, taking away small-business owners’ time and focus on their operations, employees, and customers.
Some analysis suggest initial compliance can run small-business owners around $50,000 for employers with fewer than 20 employees, and compliance costs can be even higher for small enterprises doing business across state lines.
Small businesses need clear, uniform guidelines that: target abuses, encourage innovation, and include reasonable flexibility. This is why NSBA has consistently called for a unified federal approach, rather than the development of a patchwork 50-state system.
Given how these rules can stymie existing business-customer relationships and prevent new customer growth, NSBA urges its members and the small-business community to tell policymakers to carefully consider the costly impacts of patchwork privacy policies when contemplating privacy action at the federal level.
Read the full letter here.