Why Sensitive Data is the Compliance Priority of 2025

As businesses prepare for 2025, a wave of new state privacy laws is set to redefine the landscape of data compliance. These regulations, including Maryland’s recently enacted privacy law, are raising the bar on how organizations handle data that they classify as personal and sensitive. In a heightened regulatory environment, companies that fail to act may face steep penalties, reputational damage, and operational setbacks.

As businesses prepare for 2025, a wave of new state privacy laws is set to redefine the landscape of data compliance. These regulations, including Maryland’s recently enacted privacy law, are raising the bar on how organizations handle data that they classify as personal and sensitive. In a heightened regulatory environment, companies that fail to act may face steep penalties, reputational damage, and operational setbacks.

Here’s why this type of data is emerging as the central compliance priority for the year ahead and how Above Data can help you stay ahead of the curve.

The 2025 Privacy Landscape: What’s Changing?

In 2025, several new state privacy laws will take effect, including those in states such as Maryland, New Jersey, Delaware, Nebraska, New Hampshire, Tennessee, and Indiana. These regulations build on existing frameworks but introduce stricter requirements, particularly around sensitive personal data. Maryland’s new law stands out with its firm stance on the collection and commercial use of this data. This law prohibits the collection, processing, or sharing of sensitive data entirely, except when “strictly necessary to provide or maintain a specific product or service requested by the consumer.”

These laws define this type of data broadly, encompassing information like health data, biometric identifiers, racial or ethnic origin, sexual orientation, precise geolocation, and more. Businesses must not only properly identify and classify this data but also ensure that its use complies with state-specific restrictions. 

Why Sensitive Data is the Focal Point

This poses a unique risk in compliance because it touches on deeply personal aspects of individuals’ lives. Mismanagement of this data not only breaches trust but also carries severe legal consequences.

  • Consumer Expectations Are Rising: In an era of increasing digital awareness, consumers expect their most private information to be handled with care. Mishandling this personal data can erode consumer trust and loyalty.
  • Regulatory Penalties Are Steeper: Non-compliance with these privacy provisions is attracting greater scrutiny from regulators. The potential for fines, legal challenges, and class-action lawsuits is higher than ever.
  • Operational Complexity: As each state law introduces slightly different definitions and standards for the classification of this type of data, businesses face the challenge of maintaining compliance across multiple jurisdictions.

How Above Data’s Sensitive Data Screen Helps

At Above Data, we understand the criticality of robust compliance in this evolving landscape.  Additionally, we know that ensuring the data is permissible to have and use is the first step in utilizing data for business applications. Our Screen solution is a powerful tool designed to help businesses navigate these complexities and build a business with a strong privacy and compliance foundation.

  1. Identify Sensitive Personal Data Automatically
    Using advanced, specially-trained models, our solution detects sensitive data across your systems, flagging information that might fall under regulatory definitions.
  2. Provide Clear Compliance Feedback
    Once this data is identified, the screen articulates why it believes the data may be sensitive and the categories of sensitive data it might be. 
  3. Mitigate Risk Proactively
    By automating the identification and classification of sensitive data, you reduce the likelihood of inadvertent misuse, ensuring your business remains compliant.
  4. Support Audit Readiness
    Our platform generates detailed reports that document how your organization is managing sensitive data, streamlining audit processes and demonstrating accountability.

Prepare for 2025 with Confidence

The privacy landscape is becoming more complex, but it doesn’t have to be overwhelming. Sensitive data is the focal point of the new regulations, and businesses that take proactive steps now will be well-positioned to succeed in 2025 and beyond.

Above Data’s Sensitive Data Screen equips you with the tools and insights needed to navigate this shifting terrain confidently. Don’t wait to address these challenges reactively. Proactively prepare preparing today.

Ready to take the next step in compliance? Contact us to learn more about how Above Data’s solutions can help your business thrive in a privacy-first world.