Legislators need to weigh balance between privacy laws and small business growth

Running a small business means making every dollar count, especially when it comes to marketing. That’s why I am paying close attention to the Massachusetts Data Privacy Act now being considered on Beacon Hill. There is no question that consumer..



To the Editor:
Running a small business means making every dollar count, especially when it comes to marketing. That’s why I am paying close attention to the Massachusetts Data Privacy Act now being considered on Beacon Hill.
There is no question that consumer privacy matters. Businesses have a responsibility to safeguard customer information, and I believe most small business owners support reasonable privacy protections that give consumers transparency and meaningful control over their personal data.


As legislators consider this proposal, I hope they will also recognize the importance of preserving the digital tools that help small businesses compete. Well-intentioned legislation should not unintentionally increase costs or create barriers that make it more difficult for local businesses to grow and innovate.

The bill raises concerns regarding precise geolocation data. While safeguards for sensitive information are appropriate, the current language of the bill could restrict certain uses of location services even when consumers have voluntarily chosen to receive them.


As currently written, portions of the bill could significantly limit how businesses use everyday customer and advertising information for marketing, website analytics, and customer communications. The result could be less effective online advertising, higher marketing expenses, and fewer opportunities for smaller businesses to connect with prospective customers.

Large corporations often have the financial resources to absorb new compliance requirements by hiring attorneys, consultants, and dedicated privacy teams. Most small businesses simply do not.


Supporters of privacy legislation frequently point to exemptions or size thresholds for small businesses. However, experience in other states shows that those thresholds often change over time. Even businesses that remain exempt still experience indirect effects as the advertising platforms, technology providers, and service vendors they depend on face additional compliance costs and operational restrictions.

One unintended consequence of overly restrictive privacy laws is that they can make it easier for the largest companies to dominate the marketplace while placing additional burdens on smaller competitors that lack comparable resources.


Many states have already adopted privacy laws that provide residents with meaningful rights, including the ability to access, delete, and opt out of certain uses of their personal information. As lawmakers finalize the Massachusetts Data Privacy Act, I encourage them to build on those protections while avoiding provisions that unnecessarily limit the digital tools small businesses rely on every day.


Massachusetts has earned its reputation as a leader in innovation, entrepreneurship, and technology. We can continue protecting consumer privacy through thoughtful, balanced legislation while ensuring that local businesses—and the consumers they serve—can continue benefiting from affordable, innovative digital services that have become an essential part of modern life.


Submitted by Carlos Vargas, owner of Vargas & Vargas Insurance in Dorchester.

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