We all want better privacy protections—but what happens when data rules make it harder to improve products, develop new tech, or even deliver basic services? That’s the challenge with data minimization laws now shaping state privacy regulations.
🔗 Great insights from BSA | The Software Alliance → https://www.bsa.org/policy-filings/data-minimization-in-state-privacy-laws
The key issue? Balancing consumer privacy with the practical need for data. While limiting data collection reduces security risks, overly strict rules could hamper innovation and make everyday services less effective (think: autofill, fraud prevention, and AI-driven improvements).
Top 5 Takeaways for Product Counsel ⚖️📌
1️⃣ “Reasonably Necessary” is the Gold Standard – State laws like California’s require companies to limit data collection to what’s reasonably necessary and proportionate. The challenge? What’s “necessary” is open to interpretation.
2️⃣ Data Isn’t Just for Products—It’s for Progress – Companies don’t just collect data to sell things; they use it to improve services, fix bugs, and create better user experiences. Privacy laws should reflect this.
3️⃣ U.S. vs. EU Approaches Differ – While U.S. laws focus on consumer expectations, GDPR starts with a “no processing” default unless an explicit legal basis applies. Companies operating globally need a nuanced compliance strategy.
4️⃣ De-identified Data Isn’t Always Enough – Privacy laws often push for anonymization, but some services require personal data to function properly (think: customer service routing, AI training, or personalized security alerts).
5️⃣ Consistency Matters – State-by-state differences create compliance headaches. Product teams need a unified approach that works across jurisdictions, avoiding fragmentation.
Looking Ahead: The Balancing Act 🤹♂️
Privacy-first policies are critical, but so is allowing responsible data use. Companies, policymakers, and legal teams must work together to shape laws that protect consumers without blocking innovation.
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