10 Key Privacy Developments and Trends to Watch in 2025

As we navigate 2025, the landscape of data privacy is undergoing significant transformations. Businesses and consumers alike must stay informed about these developments to ensure compliance and protect personal information. Here are ten key privacy trends and developments to watch this year:

1. Expansion of State Privacy Laws

The number of comprehensive state privacy laws is increasing. In addition to existing laws, new regulations in Delaware, Iowa, Nebraska, New Hampshire, and New Jersey have taken effect as of January 2025. Minnesota and Tennessee are set to implement similar laws in July, followed by Maryland's Online Data Protection Act in October. This brings the total to 16 states with comprehensive privacy laws by year's end. Businesses are adopting nationwide compliance strategies to address commonalities and unique provisions across these laws. Notably, Maryland's law imposes stricter data minimization and sensitive personal data requirements.

2. Intensified State Enforcement

State agencies, including the California Privacy Protection Agency and various state Attorney General offices, are increasing enforcement actions. These actions often focus on specific aspects of state laws rather than traditional multi-state investigations. Texas has been particularly proactive, enforcing its new privacy laws that include a 30-day cure period, necessitating prompt responses from companies upon receiving violation notices.

3. Federal Trade Commission (FTC) Focus on Privacy Practices

With the appointment of Commissioner Andrew Ferguson as Chair, the FTC is expected to emphasize case-by-case enforcement over broad rulemaking. This approach will likely concentrate on specific privacy issues, including children's privacy, aligning with existing statutory authority.

4. Congressional Attention to Sensitive Personal Data

Congress is anticipated to focus on legislation concerning sensitive personal data, particularly health and location information. This follows increased scrutiny of data brokers and the potential misuse of such data. Legislative efforts may aim to regulate the collection and sale of sensitive personal information.

5. Evolution of Health Privacy Regulations

The Department of Health and Human Services (HHS) is expected to finalize updates to the Health Insurance Portability and Accountability Act (HIPAA) Privacy Rule. These updates aim to enhance protections for reproductive health information and adapt to the changing healthcare landscape.

6. Rise in Privacy-Related Litigation

There is an expected increase in privacy-related class action lawsuits, particularly concerning biometric data, data breaches, and consumer privacy rights. Businesses should be prepared for potential litigation by ensuring robust data protection measures are in place.

7. Importance of Privacy in Mergers and Acquisitions

As economic conditions improve, an uptick in mergers and acquisitions is anticipated. Privacy-related due diligence will be crucial in these transactions to assess data protection practices and compliance of target companies.

8. Global Data Transfer Challenges

International data transfers continue to face challenges due to varying privacy regulations across countries. Businesses engaged in cross-border data activities must navigate complex legal landscapes to ensure compliance.

9. Technological Advancements and Privacy Implications

Emerging technologies, such as artificial intelligence and the Internet of Things, present new privacy considerations. Businesses should assess the privacy implications of deploying such technologies and implement appropriate safeguards.

10. Consumer Awareness and Demand for Privacy

Consumers are becoming increasingly aware of privacy issues and are demanding greater transparency and control over their personal information. Businesses that prioritize privacy and build trust with consumers may gain a competitive advantage.

Staying informed and proactive in addressing these privacy developments is essential for businesses to navigate the evolving regulatory environment and maintain consumer trust in 2025.