While the federal government has not yet established a comprehensive national data privacy law, individual states in the US are now drafting and enacting data privacy laws to safeguard their residents’ personal information. These regulations are typically tailored to address each state’s unique concerns within their jurisdictions.
Nevada’s data privacy law was one of the nation’s first to grant consumers greater control over their personal data. In the five years since it was put into law, Nevada Assembly Bill 220 has been amended to reflect the state’s commitment to strengthening data protection measures and meeting emerging challenges.
This guide is one in a series of articles focusing on data privacy regulations in various US states. It explains what you need to know about Nevada’s data privacy law, including core principles, consumer rights, enforcement mechanisms, and compliance requirements.
What is the Nevada Privacy Law?
The Nevada Privacy Law (SB220) and Nevada Revised Statutes 603A (NRS 603A) govern how businesses handle state consumers’ personal information. It gives residents significant control over how their personal data can be used and establishes guidelines for:
- The collection, use, and sale of an individual’s personal information by online businesses.
- Opting out of the sale of their personal information.
- Directing businesses not to sell their personal information.
Nevada’s privacy law was initially enacted in 2017 and was amended in 2019 and 2021 (SB260) to introduce new consumer rights. Since the Nevada Privacy law effective date of October 1, 2019, businesses must provide consumers with a designated opt-out address—such as a website, email address, or toll-free phone number—which they can use to submit opt-out requests. For instance, SB260, effective October 1, 2021, broadened the law’s reach to include data brokers and expanded the definition of “sale” to include more diverse data transactions.
In March 2024, Senate Bill 370 (SB370) was enacted to include health data privacy in the law. Effective March 31, 2024, businesses handling consumer health data must obtain explicit consent before collecting, using, or disclosing the data. Providers must also implement robust data security measures and are prohibited from using geofencing technology around medical facilities to collect or track consumer health data or send targeted ads.
Nevada’s commitment to data privacy is a model for other states and highlights the growing importance of protecting consumer data in today’s digital world. Businesses operating in Nevada must stay informed and compliant to avoid penalties and maintain the trust of their customers.
What Data Rights Do Nevada Consumers Have Under the Nevada Privacy Law?
The most significant right for consumers under Nevada’s Privacy Law is to opt out of the sale of their personal information. Consumers can direct business operators and data brokers not to sell their personal data to third parties. To ensure this occurs, businesses must provide a designated request address that consumers can use to submit their opt-out requests.
Unlike some other state privacy laws, Nevada’s SB220 does not give consumers the right to access, delete, or correct their personal information. Instead, the law focuses on providing them with control over the sale of their data.
Right To Opt-Out of the Sale of Person Information
Individuals can instruct businesses and data brokers not to sell any covered information collected from them. The term “sale,” as defined in the law, is “the exchange of covered information for monetary consideration by an operator or data broker to another person.”
Exercising the Right to Opt-Out
Nevada residents can submit a verified request through business-provided designated channels. Standard methods include an email address, a toll-free phone number, or an online form accessible on the business’s website.
Business Obligations
Businesses must offer at least one method for consumers to submit opt-out requests, such as an email address, toll-free telephone number, or an online form.
Once a business receives a verified opt-out request, it must respond within 60 days (which can be extended up to 30 days if reasonably necessary). It must also use “commercially reasonable” means to verify the request’s authenticity. Lastly, businesses must implement and maintain effective opt-out mechanisms to ensure regulatory compliance.
How is the Nevada Privacy Law Enforced?
Nevada’s evolving privacy regulations require businesses to remain vigilant in their compliance efforts to uphold transparency and ensure consumer trust.
The Nevada Attorney General enforces the Nevada Privacy Law. Businesses failing to comply can face penalties of up to $5,000 per violation. The attorney general can also seek temporary or permanent injunctions against violators.
Important note: SB220 does not provide a private right of action. As enforcement is solely within the attorney general’s purview, individual consumers cannot sue businesses directly for violations.
Which Businesses Does the Nevada Privacy Law Apply To?
The Nevada Privacy Law applies to “operators.” These are defined as entities that:
- Own or operate a commercial website or online service that caters to Nevada residents, regardless of where your business is based.
- Collect and maintain covered information for Nevada residents.
- Have a significant connection to the state, either by actively targeting Nevada residents or having a substantial presence within the state.
As amended by SB260, SB220 extends to “data brokers.” However, certain entities are exempt, including:
- Financial institutions subject to the Gramm-Leach-Bliley Act.
- Those subject to the Health Insurance Portability and Accountability Act (HIPAA).
- Motor vehicle manufacturers or repair businesses.
- Those collecting, maintaining, or selling information for fraud prevention purposes.
How to Comply With the Nevada Privacy Law
Building consumer confidence through data privacy policies requires a robust privacy framework. This includes creating a comprehensive and compliant privacy policy that clearly spells out what personal information you collect, how you use it, and with whom you share it. The policy should explicitly inform Nevada consumers of their right to opt out of the sale of their personal information. It should also provide easy-to-understand instructions on exercising their rights.
Compliance can be achieved by following these steps:
- Update organizational privacy policies. Clearly disclose what personal information is collected, how it will be used, and the types of third parties you intend to share it with. Even if your business does not share information with third parties, it should set up a designated request address and include policy language that makes clear you don’t sell covered information.
- Establish a designed opt-out request address. Provide Nevada consumers with one or more methods, such as an email address, toll-free number, or online form to submit their opt-out requests regarding the sale of their personal information.
- Implement opt-out procedures. Develop and maintain processes that ensure your organization handles consumer opt-out requests promptly and stops selling that individual’s personal information once the request is submitted.
- Maintain meticulous records. To maintain compliance in the event of an audit, keep detailed logs and files of consumer opt-out requests and the actions taken in response. Conduct regular audits and assessments to ensure ongoing compliance.
- Review data-sharing practices. Evaluate third-party relationships and determine whether any data sharing with them constitutes a “sale” under SB220. Ensure all opt-out requests are honored accordingly.
- Team member training. A well-informed staff is better equipped to handle personal information appropriately. They can respond to opt-out requests quickly and confidently, upholding the organization’s privacy standards.
- Stay informed. The Nevada Privacy Law will likely continue to evolve and be amended. It’s vital to keep up-to-date on any regulatory changes or amendments.
By adhering to these steps, Nevada businesses can comply with the law’s requirements while upholding consumer trust in their data handling practices.
How Technology Can Help Navigate Multi-State Privacy Requirements
As businesses expand into new states or adapt to evolving privacy regulations, managing compliance across multiple jurisdictions becomes increasingly complex. Each state’s unique requirements – from Nevada’s focused opt-out provisions to California’s comprehensive consumer rights – create a matrix of obligations that can be challenging to track and implement manually.
Velotix’s data access platform helps organizations navigate these complexities by providing:
- Dynamic policy management. Automatically adapt access policies as your business enters new states or as regulations change, without needing to rewrite underlying permissions
- Unified compliance framework. Manage multiple state privacy requirements through a single platform, reducing the complexity of maintaining separate compliance systems
- Real-time enforcement. Ensure that data access decisions align with the latest regulatory requirements and consumer opt-out requests across all jurisdictions
- Scalable implementation. As privacy laws continue to evolve and expand across states, the platform grows with your compliance needs without requiring extensive reconfiguration
This automated approach to managing data access helps businesses stay compliant with Nevada’s privacy law while being prepared for future regulatory changes or expansion into new markets.
