The Nebraska Data Privacy Act: Key Requirements for Compliance

Nebraska's privacy law at a glance

• Signed into law on April 17, 2024, by Governor Jim Pillen, the Nebraska Data Privacy Act (NDPA) will come into effect on January 1, 2025.
• As the seventeenth state to adopt comprehensive data privacy legislation, Nebraska continues a growing trend in consumer data protection.
• Businesses that fall under the law's scope should start preparing for compliance now.
• Read on to learn who is subject to the NDPA, the key requirements, and how it compares to other state privacy laws. You’ll find a compliance checklist at the end.

Who’s subject to the Nebraska Data Privacy Act?

Nebraska’s data privacy law applies to any person or entity that:

1. Conducts business in Nebraska or produces a product or service consumed by Nebraska residents
2. Processes or sells personal data AND
3. Is not classified as a small business under the federal Small Business Act as of January 1, 2024.

Notably, the NDPA does not include a minimum revenue threshold or a specified number of consumers, which means it captures a wider range of businesses than many other state laws. The law offers exemptions for government agencies, certain financial institutions, non-profit organizations, and a few others.

Compliance requirements under Nebraska’s privacy law

Consumer rights

Under the Nebraska Data Privacy Act, consumers enjoy rights akin to those found in other state privacy laws. These rights include the ability to request:

• Access to their personal data and confirmation of processing
• Correction of inaccuracies in their data
• Deletion of personal data, whether provided by or obtained about them
• Data Portability i.e. they can request a copy of their data in an easily transmittable format
• Opt-Out from processing personal data for targeted advertising, sales, or automated profiling that could have a significant impact on their life

Businesses must respond to consumer requests within 45 days, with a possible extension of another 45 days for complex cases.

Processing agreements between controllers and processors

Businesses must enter into processing agreements with data processors. These contracts should clearly define:

• Instructions for processing personal data
• The nature, purpose, and duration of processing
• Data types involved and the roles of each party
• Confidentiality obligations for everyone handling the data

This agreement ensures that processors adhere to the NDPA’s requirements, helping to protect both the consumer and business from data misuse.

Obtaining affirmative consent

Consent is crucial when handling sensitive data. Businesses under Nebraska’s privacy law must obtain explicit consumer consent before processing or selling sensitive data. This requirement extends to the data of children, aligning with federal regulations like COPPA.

Honoring universal opt-out signals

To respect consumer preferences, businesses are required to recognize universal opt-out signals from the law's effective date. This feature gives consumers a straightforward way to exercise their privacy rights across various digital experiences.

Deleting consumer data from downstream sources

Upon a consumer's request for data deletion, businesses are not just responsible for removing data they’ve collected directly—they must also ensure the deletion of data obtained from third-party sources.

Data protection impact assessments

For activities involving high-risk data processing, businesses should conduct data protection impact assessments. These evaluations help identify potential risks and implement measures to mitigate them, better ensuring compliance with the law.

How Nebraska's privacy law compares to other state privacy laws

Broader scope and applicability

The NDPA has a broader scope compared to many other state laws, in that:

• It doesn’t have revenue or data volume thresholds for applicability
• It applies to companies that do business in Nebraska or target its residents and process or sell personal data
• The law exempts small businesses as defined by federal law, similar to Texas's privacy law

Permanent 30-Day cure provision

While many state privacy laws phase out cure periods (or the period in which a business has time to address alleged violations), Nebraska maintains a permanent 30-day cure provision. This will permanently give businesses an opportunity to rectify violations before facing legal action, giving them a chance to demonstrate compliance efforts.

Broad definition of a data "sale"

Similar to California and Connecticut, Nebraska defines a "sale" of personal data broadly. This definition includes not just the direct sale of data for money, but also instances where personal data is exchanged for other benefits, services, or advantages.

Such a broad definition necessitates heightened disclosure and consumer control over their data, meaning businesses must provide clear, transparent information about how personal data is used and offer consumers the ability to opt out of these transactions.

Expanded deletion right for consumers

Nebraska goes beyond merely deleting data collected directly from consumers; businesses are also required to erase data obtained from other sources, such as third-party vendors or public records. This provision underscores the importance of comprehensive data management, ensuring that all personal information, regardless of its origin, is responsibly handled and protected.

Nebraska Data Privacy Act compliance checklist

1. Conduct a gap analysis

Begin by thoroughly assessing current data privacy practices against the specific requirements set forth by Nebraska's privacy law. This includes reviewing policies, procedures, and any existing compliance measures to identify areas needing improvement.

2. Complete a data inventory

Perform a comprehensive audit to identify and catalog all types of data collected, stored, and processed within the organization. This inventory helps ensure that data handling aligns with legal standards, covering everything from personal information to sensitive data classifications.

Explore Transcend Data Inventory.

3. Establish mechanisms for consumer requests

Develop robust processes and infrastructure to promptly and accurately address consumer requests related to their data rights, such as access, correction, deletion, and data portability. Ensuring these processes are in place is crucial for demonstrating compliance and maintaining consumer trust.

Transcend DSR Automation make fulfilling consumer rights requests simple.

4. Implement a consent management solution

Deploy effective tools and systems to manage, track, and document consumer consent. This includes mechanisms for obtaining explicit consent and keeping records of how and when consent was given, which is vital for transparency and accountability.

Learn how Transcend Consent Management can help with NDPA compliance.

5. Conduct data protection assessments

Regularly evaluate high-risk data processing activities to identify potential privacy risks. Implement necessary technical and organizational safeguards to mitigate these risks, ensuring that data protection is proactive and comprehensive.

6. Implement privacy notices

Create clear, accessible, and informative privacy notices that detail the organization’s data practices, consumer rights, and the legal basis for data processing. These notices should be readily available to consumers, helping them understand how their data is used and protected.

7. Honor universal opt-out mechanisms

Ensure that systems are designed to recognize and respect consumer opt-out requests, including universal opt-out signals like the Global Privacy Control.

By following this comprehensive checklist, businesses can effectively navigate the Nebraska Data Privacy Act. This approach not only safeguards consumer data but also upholds regulatory standards, fostering trust and ensuring compliance in a rapidly evolving legal landscape.

About Transcend

Transcend is a next-generation platform privacy and data governance. Encoding privacy at the code layer, we provide solutions for any privacy challenge your teams may be facing—including getting you ready for new legislation like Delaware's data privacy law.

From Consent Management, to automated DSR Automation, to a full suite of data mapping solutions (Data Inventory, Silo Discovery, Structured Discovery, and more), Transcend has you covered as your company grows and evolves in a swiftly changing regulatory environment.