Understanding the Montana Consumer Data Privacy Act (MTCDPA)

Data privacy is becoming a cornerstone of modern business practices, and Montana has joined the growing number of states addressing this critical issue with the Montana Consumer Data Privacy Act (MTCDPA). Signed into law on May 19, 2023, the MTCDPA took effect on October 1, 2024, bringing with it new responsibilities for businesses and enhanced protections for consumers.

As a Montana-based company hosting hundreds of local business websites, we want to help you understand the key aspects of this legislation and how it applies to your business. More importantly, we’re here to help you achieve full compliance, protecting both your operations and your customers’ trust.

What Is the MTCDPA?

The Montana Consumer Data Privacy Act is designed to give Montana residents greater control over their personal data. It provides specific rights to consumers and imposes clear obligations on businesses that process personal data. The law aligns with broader trends in consumer privacy regulations seen in other states and internationally.

Key Provisions of the MTCDPA:

• Consumer Rights: Montana residents have the right to:
  • Access personal data collected about them.
  • Correct inaccuracies in their data.
  • Request the deletion of their data.
  • Obtain a copy of their data in a portable format.
  • Opt-out of the sale of personal data or its use for targeted advertising.
• Business Obligations: Companies must:
  • Provide clear and accessible privacy notices.
  • Implement reasonable data security measures.
  • Establish processes to handle consumer data requests promptly and transparently.

Who Does the MTCDPA Apply To?

The MTCDPA applies to businesses that meet specific thresholds, including:

1. Processing Personal Data: Controlling or processing the personal data of at least 50,000 Montana residents annually (excluding data processed solely for payment transactions).
2. Revenue Dependency: Processing personal data of at least 25,000 Montana residents while deriving over 25% of gross revenue from the sale of personal data.

Even if your business doesn’t meet these thresholds, adopting compliant practices can build trust and demonstrate your commitment to data protection.

What Does This Mean for Your Website?

If your website collects or processes user data—through forms, cookies, or e-commerce—you may need to make updates to align with MTCDPA requirements. Key compliance measures include:

1. Updating Privacy Policies

Your privacy policy must clearly explain:

• What data you collect and why.
• How the data is used, stored, and shared.
• Consumer rights under the MTCDPA and how to exercise them.

2. Providing Opt-Out Mechanisms

You must offer users a clear way to opt-out of the sale of their data or its use for targeted advertising. This could be in the form of a button, checkbox, or dedicated form.

3. Enabling Data Requests

Your website should include a process for:

• Allowing users to request access to their data.
• Handling deletion requests efficiently.
• Correcting inaccuracies upon user request.

4. Enhancing Security Practices

The MTCDPA requires businesses to implement reasonable security measures to protect consumer data from breaches and unauthorized access.

5. Managing Cookie Consent

If your site uses cookies to track user behavior, you need a consent management system to ensure compliance with user preferences.

How We Can Help

Navigating the complexities of the MTCDPA can feel complicated, but you don’t have to do it alone. We are here to help Montana businesses align with data privacy laws. Here’s how we can support you:

• Privacy Policy Updates: We’ll draft or update your privacy policy to meet MTCDPA standards.
• Compliance Audits: Our team will conduct a thorough review of your website to identify gaps and recommend solutions.
• Cookie Consent Management: We’ll implement tools to manage user consent for cookies and tracking.
• Data Security Enhancements: We’ll help you secure your website to protect sensitive information.
• Ongoing Support: As laws and regulations evolve, we’ll ensure your site remains compliant.

Why Compliance Matters

Failing to comply with the MTCDPA can result in:

• Penalties enforced by the Montana Attorney General.
• Damage to your business’s reputation.
• Loss of customer trust in your brand.

Compliance isn’t just about avoiding fines—it’s an opportunity to build stronger relationships with your customers by showing that you value their privacy.

Don’t Wait—Get MTCDPA Compliant Today

Our team believes it’s important to help Montana businesses fully understand and comply with the MTCDPA, while trusting in a local provider.

The Montana Consumer Data Privacy Act is set to change how businesses handle consumer data. Whether your business falls directly under the law’s thresholds or not, adopting these practices is a proactive step toward building trust and staying ahead of the curve.

Contact us today to schedule a compliance audit or learn more about how we can help your business navigate this important legislation. Let’s work together to ensure your website and operations are ready for the future of data privacy in Montana.