Minnesota's New Privacy Law Goes Live July 31, 2025 - Here's What Business Owners Need to Know

 

Running a business just got a bit more complex in Minnesota. The Minnesota Consumer Data Privacy Act (MCDPA) becomes law on July 31, 2025.

If you handle data from Minnesota customers, this affects you. The law gives people more control over their personal information. It also creates new rules for businesses.

This isn't about scaring anyone. It's about staying informed and prepared.

What is the Minnesota Consumer Data Privacy Act?

The MCDPA is Minnesota's version of privacy laws like California's CCPA or Europe's GDPR. It gives Minnesota residents new rights over their personal data.

The law covers how businesses collect, use, and share customer information. It applies to companies that meet certain size requirements.

Key date: July 31, 2025 - that's when businesses must be fully compliant.

Does This Apply to Your Business?

Not every business needs to follow MCDPA rules. You're covered if you:

• Process data from 100,000+ Minnesota residents annually, OR
• Process data from 25,000+ Minnesota residents AND make money selling their data

Simple test: Count your Minnesota customers. If you hit these numbers, you need to comply.

Some businesses get exceptions:

• Banks and credit unions
• Insurance companies
• Healthcare providers
• Non-profit organizations
• Government agencies

What Rights Do Minnesota Residents Get?

The MCDPA gives people several new rights:

Right to Know: People can ask what data you have about them.

Right to Delete: They can request you delete their information.

Right to Correct: They can fix wrong information in their records.

Right to Opt-Out: They can stop you from selling their data or using it for ads.

Right to Data Portability: They can get their data in a format they can use elsewhere.

Right to Challenge Decisions: If you use automated systems to make decisions about them, they can challenge those decisions.

You have 45 days to respond to these requests. Extensions are possible for complex cases.

What Do Businesses Need to Do?

Getting ready for MCDPA takes several steps:

Update Your Privacy Policy

Your privacy policy must clearly explain:

• What data you collect
• Why you collect it
• Who you share it with
• How people can contact you about their data

Write it in plain English. Avoid legal jargon.

Set Up Request Handling

You need systems to handle customer requests about their data. This includes:

• Ways for people to submit requests
• Processes to verify who's making the request
• Methods to find and delete data
• Appeal processes for denied requests

Conduct Risk Assessments

If your data processing could significantly affect people, you need to document the risks. This includes:

• Processing sensitive personal data
• Selling personal data
• Using data for targeted advertising
• Profiling that affects people's opportunities

Train Your Team

Everyone who handles customer data needs to understand the new rules. This includes:

• What counts as personal data
• How to handle customer requests
• When to escalate issues
• How to document everything properly

Enforcement and Penalties

The Minnesota Attorney General enforces MCDPA. Unlike some other states, individuals can't sue businesses directly.

Penalties: Up to $7,500 per violation. For businesses with many customers, this adds up quickly.

The Attorney General can also:

• Issue injunctions to stop violations
• Require compliance audits
• Impose ongoing monitoring

Making Compliance Easier

Handling MCDPA compliance manually is time-consuming and error-prone. Many businesses are looking for automated solutions.

That's where tools like SeersAI come in handy. SeersAI offers a one-click compliance solution that automatically updates when new laws like MCDPA, TIPA, or others take effect.

You toggle it on, and it handles the technical details. It keeps track of changing regulations so you don't have to.

Getting Started Today

Don't wait until July 30, 2025, to start preparing. Here's what you can do now:

1. Audit your data: Figure out what Minnesota resident data you have
2. Review your policies: Update privacy notices and terms of service
3. Set up systems: Create processes for handling consumer requests
4. Train staff: Make sure everyone knows the new rules
5. Consider automation: Look into tools that can simplify compliance

The Bottom Line

MCDPA isn't going away. Businesses that serve Minnesota customers need to adapt.

The good news? You have time to prepare. The even better news? The right tools can make compliance much simpler.

Focus on building trust with your customers. Transparent data practices aren't just legally required - they're good for business.

Want to learn more about privacy compliance strategies? Check out the full guide on Minnesota Consumer Data Privacy Act for deeper insights.