Pennsylvania is currently moving toward its first-ever comprehensive data privacy law. Lawmakers are advancing House Bill 78, also known as the Consumer Data Privacy Act, which gives PA residents more transparency and control over their personal information. The bill has already cleared the House is currently being considered by the Senate.
While many states have passed similar laws recently, Pennsylvania’s proposed version has a wider reach, meaning more small-to-mid-sized companies will be required to comply than in other parts of the country. With the law expected to go into effect later this year, now is a good time to start thinking how these new standards will change the way you manage your business records.
Who Needs to Comply With the Pennsylvania Consumer Data Privacy Act?
Pennsylvania’s Consumer Data Privacy Act stands out in the Northeast because it applies to businesses at lower thresholds than many similar state laws. This broader scope means many small and mid-sized businesses may encounter privacy regulation for the first time. The law applies to businesses operating in Pennsylvania that meet any of the following criteria:
- The Revenue Threshold: Your business has annual gross revenues in excess of $10,000,000.
- The Data Volume Threshold: Your business buys, receives, or shares the personal data of at least 50,000 consumers, households, or devices per year.
- The Data Sales Focus: Your business generates 50% or more of its annual revenue from selling personal data.
Even if your business doesn’t meet these specific numbers today, it is important to note that Pennsylvania’s law establishes a new standard for data handling. Maintaining these practices is a smart way to build customer trust and ensure you are prepared as your business grows.
Who is Exempt from the New Law?
While Pennsylvania’s bill has a broad reach, it includes several important exemptions. These carve-outs generally apply to businesses already subject to federal data privacy laws, as well as certain entities that operate in a public-interest or regulatory capacity.
- Federal Law Alignment: If your business is already regulated by HIPAA (healthcare) or the Gramm-Leach-Bliley Act (financial institutions), you are likely exempt. The law is designed to avoid doubling up on rules you are already following.
- Nonprofits and Schools: Most nonprofit entities and higher education institutions are not subject to the new requirements under Pennsylvania’s law.
- Government Entities: State and local government agencies in Pennsylvania are also exempt.
- Employment Records: One of the more meaningful exclusions for business owners is that the law focuses on consumers rather than employees. Internal payroll files, employee evaluations, and job application materials are typically outside the scope of these consumer data rights.
New Rights for Pennsylvania Residents
The Pennsylvania Consumer Data Privacy Act grants residents a set of consumer rights that are becoming common across state privacy laws, while placing additional accountability on businesses that collect and use personal information. Under the law, Pennsylvania residents gain the right to:
- Confirm and Access: Residents can ask if you are processing their data and request a copy of the specific information you have on file.
- Correction and Deletion: When personal data is inaccurate, residents can request corrections. They may also ask for their personal information to be deleted, subject to certain exceptions.
- The Right to Opt-Out: Consumers may opt out of the sale of their personal data or its use for targeted advertising.
- The Right to Appeal: If a business denies a consumer’s request (for example, refusing to delete a specific record), the business needs to provide a clear and accessible process for the consumer to appeal that decision.
The Challenge of the Appeals Process
The Right to Appeal introduces a new administrative requirement for Pennsylvania businesses. When a consumer request is denied, the business must respond within 45 days, provide a reason for the decision, and outline a process for submitting an appeal.
For businesses that still keep records on paper, meeting a 45-day response window can be challenging. Moving to digitized, searchable records makes it easier to locate information, support decisions, and manage appeals without adding unnecessary administrative effort.
The Data Minimization Standard
One of the central ideas in Pennsylvania’s Consumer Privacy Data Act is data minimization. This requirement limits businesses to collecting and keeping only the personal information that is reasonably necessary to provide a specific service.
For many local businesses, this standard encourages a closer look at long-term storage habits. Outdated digital systems and physical records storage may contain sensitive information that has not been referenced in years. Holding onto that data for no clear business purpose increases exposure under the new law. Complying with this requirement means identifying which records still serve an active business need and which can be securely retired through secure disposal or digitization.
Pennsylvania Compliance Checklist
Because Pennsylvania’s law sets a lower entry threshold than many other states, smaller businesses may find themselves subject to privacy requirements for the first time. This checklist helps organize data practices before the law takes effect.
- Review Your Revenue and Data Volume: Confirm whether the business meets the $10 million annual revenue threshold or processes personal data for 50,000 or more consumers. Businesses approaching these figures may benefit from preparing early.
- Audit Your Data Collection: Identify what personal information is being collected and where it is stored. This includes physical records such as signed agreements and paper applications, along with digital files and databases.
- Apply Data Minimization: Review stored records to determine which information remains reasonably necessary for business purposes. Establish a retention schedule and a process for securely disposing of data that no longer serves an active need.
- Establish a Consumer Request Process: Create a structured procedure for handling access, correction, and deletion requests. Responses must be provided within 45 days.
- Set Up an Appeals Process: Unlike many other states, Pennsylvania requires you to have a formal way for customers to appeal if you deny their data request. Ensure you have a point of contact designated for this.
- Identify Sensitive Data: Find out where sensitive personal information is stored, including geolocation data, health information, or Social Security numbers. This category of data requires explicit consumer consent.
- Secure Your Physical Records: Ensure that any paper-based personal data is indexed and accessible. If you cannot find a record quickly, you cannot fulfill a deletion or access request on time.
SecureScan Supports Pennsylvania Businesses
As the Pennsylvania Consumer Data Privacy Act approaches, preparation often starts with reducing how much personal data is held and how it is stored. Well-organized records lower friction when access or deletion requests come in and make compliance easier to manage over time.
SecureScan supports Pennsylvania businesses by converting paper archives into secure, searchable digital records that support timely and accurate responses. From handling consumer access requests to managing the Right to Appeal required under HB 78, organized records help businesses stay within the 45-day response window. When records no longer serve an active business purpose, certified destruction services help retire them in line with data minimization expectations.
Contact our Pennsylvania team today to learn how we can help you simplify your compliance and organize your records before the new law takes effect or get a free quote from one of our scanning technicians.
