Maryland’s Online Data Privacy Act of 2024 (MODPA) is set to go into effect on October 1, setting new rules and limitations on how certain companies can collect, use, and sell users’ personal data.
Senior Advisor and Communications Director for Governor Wes Moore, David Turner, told Newsweek the Act “puts common sense consumer protections in place around large businesses that handle millions of Marylanders’ personal and biometric data, providing clear and transparent methods to manage the sharing of their personal information.”
He added that “Its passage creates steps to greater protections in the absence of meaningful action at the federal level.”
Why It Matters
MODPA, approved by the General Assembly and signed by Moore in 2024, comes amid rising concerns about how companies collect and use Americans’ personal data.
The law gives consumers more control over their information, including rights to access, delete and opt out of certain data practices. Privacy policy in the United States is complex, with a mix of state and federal laws regulating how companies collect and use personal data.
What To Know
The Act limits companies’ ability to sell “sensitive data,” and specifically prohibits companies from selling “the personal data of a consumer if the controller knew or should have known that the consumer is under the age of 18 years.” The restriction also covers targeted advertising, a common use of personal data sales.
Maryland’s law sets relatively low compliance thresholds, covering companies that do business in the state or target residents that handle data from “at least 35,000 consumers,” excluding solely processing payment transactions, or “the personal data of at least 10,000 consumers and derived more than 20% of its gross revenue from the sale of personal data.”
MODPA also places limitations on the collection and processing of sensitive data, diverging from the typical “opt-in” choice. The legislation will be enforced by the Maryland Attorney General.
Across the U.S., other states are pushing forward similar privacy legislation, with the Massachusetts State Senate having passed a Data Privacy Act on Thursday. State Senator Barry Finegold celebrated the move, calling it a “groundbreaking initiative.”
What People Are Saying
International law firm, Perkins Coie, wrote in an X post on September 25: “The Maryland Online Data Privacy Act (MODPA) is just around the corner, taking effect on October 1. Businesses should consider preparing to address novel compliance obligations that also rank among the most stringent to date.”
Receivables Management Association International wrote in a 2024 X post: “Maryland’s Governor signed into law the Maryland Online Data Privacy Act of 2024 (House Bill 567/Senate Bill 541), making Maryland the seventeenth state to enact a comprehensive consumer data privacy law.”
What Happens Next
The act goes into effect on Wednesday, October 1. Across the country, several state legislatures are pushing through similar privacy-related bills, with the Oregon Consumer Privacy Act set to go into effect on January 1, 2026.