Beginning May 1, 2027, covered businesses would have to follow consumer data rights, privacy notices, security duties, and limits on certain data uses.
Covered businesses would let Alabama consumers access, correct, delete, or copy their personal data and opt out of targeted ads, data sales, and some automated decisions.
Large covered businesses would limit data collection, secure personal data, explain their practices, and follow consent and opt-out rules, with broad listed exemptions.
Starting May 1, 2027, the Attorney General could enforce these rules after giving a business 45 days to fix a violation; courts could impose penalties up to $15,000 per violation.
Consumers may ask covered businesses to view, correct, delete, or receive a copy of their personal data, and may opt out of certain uses. These rights cover Alabama residents, including a parent or guardian acting for a child or a guardian acting for a consumer. Requests must usually be authenticated. Consumers may opt out of targeted advertising, the sale of their personal data, and certain automated decisions. A business may refuse a request it cannot authenticate or that is excessive, repetitive, technically infeasible, or otherwise allowed under the act. Businesses must provide the information free once in a 12-month period, but may charge a reasonable administrative fee for some repeated or excessive requests. A business generally must respond within 45 days and may extend the response period by 45 more days when reasonably necessary and properly explained.
Covered businesses must limit data collection, protect personal data, explain their practices in a privacy notice, and honor valid consumer choices. The rules apply to businesses operating in Alabama or serving Alabama residents that handle data for more than 25,000 consumers or receive over 25 percent of gross revenue from selling personal data. Businesses must obtain consent before processing sensitive data, except for processing a known child's data under federal children's privacy rules. Businesses may not sell personal data or use it for targeted advertising without consent when they know the consumer is at least 13 but under 16. Businesses generally may not punish a consumer for opting out, although exceptions apply to services that require data processing and voluntary loyalty or discount programs. Many governments, schools, financial institutions, health care entities, small businesses, nonprofits, and federally regulated data are excluded. The act states that these duties and restrictions take effect May 1, 2027.
The Attorney General may enforce the act after giving a business notice and 45 days to correct a violation. Enforcement applies to controllers covered by the act, and a court may order compliance and assess a civil penalty of up to $15,000 per violation. If a business corrects the noticed violation within 45 days and provides the required written statement, the Attorney General may not start an action for that violation. The act does not create a private right for consumers to sue under its enforcement section. The act becomes effective on May 1, 2027; the 45-day correction period begins when the business receives the Attorney General's notice.
No hearings or votes scheduled.