Re:Vermont passes first law to crack down on data brokers
by downandout on Monday May 28, 2018 @10:06PM
(#17175944)
What you’re not understanding is that this is a state law. They can only regulate the activities of businesses that operate within their own state.
They use the broad definition of a “business” because in the US you can be incorporated in Delaware and actually operate in Vermont. This is actually a common thing - most US corporations are incorporated under the laws of either Delaware or Nevada but operate within their home state. But the state only has the ability to regulate the actual operations of businesses operating within Vermont.
Some excerpts that define some key terms:
"(2) "Business" means a commercial entity, including a sole proprietorship, partnership, corporation, association, limited liability company, or other group, however organized and whether or not organized to operate at a profit, including a financial institution organized, charterd, or holding a license or authorization certificate under the laws of this State, any other state, the United States, or any other country, or the parent, affiliate, or subsidiary of a financial institution, but does not include the State, a State agency, any political subdivision of the State, or a vendor acting solely on behalf of, and at the direction of, the State.
(3) "Consumer" means an individual residing in this State.
(4)(A) "Data broker" means a business, or unit or units of a business, separately or together, that knowingly collects and sells or licenses to third parties the brokered personal information of a consumer with whom the business does not have a direct relationship."
[1] https://legislature.vermont.gov/bill/status/2018/H.764