Indianapolis, IN —Governor Eric Holcomb has signed a consumer data privacy bill (Senate Bill 5), into law, despite objections from consumer advocates.
Consumer Reports is calling on the Indiana legislature to better protect the privacy of Hoosiers by making amendments to the law during its next session.
While the law includes some basic consumer rights, such as the right to know the information companies have collected about them, the right to delete that information, and the right to limit some data disclosures, those rights are undercut by weak definitions of what constitutes a sale and targeted advertising. It offers no universal opt-out or authorized agent provisions, and it has insufficient enforcement mechanisms. The bill also allows companies to discriminate against consumers who exercise their right to opt-out by denying service or charging extra.
“The Indiana legislature should take a closer look and examine how exactly S.B. 5 protects consumers,” said Matt Schwartz, policy analyst at Consumer Reports. “A closer examination will reveal that there are many loopholes businesses can use to evade the protections considered in this law. Adding a universal opt-out provision would be a great start to strengthening the law. We look forward to working with lawmakers to improve the law before it goes into effect in 2026.”
Senate Bill 5 is the seventh comprehensive state privacy law, following laws in California, Utah, Virginia, Colorado, Connecticut, and Iowa.