Website Owners and Online Businesses Beware of New Privacy Law in Nevada

Contributing Authors: Jordan Butler, Esq. & Royi Moas, Esq.

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On May 29, 2019, Nevada passed a new internet privacy law, Senate Privacy Bill No. 220, which goes into effect October 1, 2019.  The law amends existing online privacy law for owners and operators of websites and online commercial providers by imposing additional privacy requirements in favor of consumers.  The law has a number of external and internal compliance requirements that covered entities subject to enforcement will need to comply with, and fairly quickly. 

Broadly construed, the law applies to companies that have any type of online platform that targets and collects the personal information of Nevada Consumers, regardless of the company’s physical location.  Under the law, an Operator is defined as a person or entity that:

  1. owns or operates an Internet website or online service for commercial purposes;

  2. collects and maintains Personal Information from Consumers who reside in Nevada and use or visit the Internet website or online service; and

  3. purposefully directs its activities toward Nevada, consummates some transaction with Nevada or a resident thereof, or purposefully avails itself of the privilege of conducting activities in Nevada, or otherwise engages in any activity that constitutes enough nexus with Nevada to satisfy the requirements of the United States Constitution.

 REQUIREMENTS – Operators must provide contact information and track and respond to requests that the company not sell any of the Consumer’s Personal Information.  Specifically, the law requires Operators to provide Nevada Consumers notice of a designated address (e.g. e-mail address, toll-free telephone number or Internet website established by the Operator) by which a Consumer can submit a verified request directing the company not to sell any of the Consumer’s Personal Information. The law further requires Operators to actively track and respond to these requests, as detailed more fully below. 

A PRIVACY NOTICE IS NO LONGER ENOUGH - Previously, Nevada’s online privacy law merely required Operators to make a privacy notice available to Consumers describing the types of information collected by operators through the website or online platform, and to disclose the third parties with whom the Operator shared personal information.  The new law, Nevada Senate Bill 220, provides added protections for Consumers by requiring Operators to establish a mechanism for consumers to opt-out regarding the sale of their information, and imposing an obligation on Operators to honor the opt-out request by ceasing the sale of personal information collected by the Operator. 

WHO IS COVERED? A “Consumer” covered by the law is a person who seeks or acquires, by purchase or lease, any good, service, money or credit for personal, family or household purposes from the Internet website or online service of an operator.

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