Ad Biz To Virginia Governor: Veto Location Privacy Bill

Ad industry groups are urging Virginia Governor Abigail Spanberger to veto a bill that would prohibit businesses from selling data that can pinpoint people's locations within a 1,750-foot radius.

"This sweeping ban would unnecessarily disrupt data practices that allow companies to reach consumers with relevant content and advertising," the Association of National Advertisers, American Association of Advertising Agencies, American Advertising and Federation Digital Advertising Alliance says in a letter sent Monday to Spanberger.

The bill (SB 338), introduced by Senator Russet Perry, gained final approval by state lawmakers earlier on Monday. The vote in both the state House and Senate was unanimous.

Virginia's existing privacy law, passed in 2021, requires businesses to obtain consumers' consent before selling precise location data, but doesn't outright prohibit the sale of such data.

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The ad organizations argue that this 2021 law "already safeguards location data."

The groups write that a total ban on the sale of precise location data would "have a chilling effect on commerce, and deprive consumers of the ability to choose to learn about goods and services near to them through relevant marketing."

Some states with privacy laws allow businesses to sell precise location data with consumers' explicit consent, but two states -- Maryland and Oregon -- have outright prohibited companies from selling this information.

Others -- including California, Connecticut, Maine, Massachusetts, Vermont, and Washington -- are considering bans on the sale of precise location data, according to Consumer Reports, which supports such laws.

Matt Schwartz, a policy analyst with Consumer Reports, testified in favor of the bill last week.

"The weather app on your phone might need access to your location information to give you an accurate forecast, but it shouldn't be selling that data to dozens of companies behind your back," he told lawmakers in the Virginia House.

The Electronic Information Privacy Center also backed the bill.

"Many apps are sending your precise location data back to third parties you've never even heard of," Electronic Privacy Information Center deputy director Caitriona Fitzgerald told lawmakers.

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