Maryland Online Data Privacy Act (MODPA): What Businesses Must Know

How well is your business prepared for the next wave of U.S. privacy regulations? With the Maryland Online Data Privacy Act (MODPA), which officially took effect on October 1, 2025, and enforcement beginning April 1, 2026, businesses collecting data from Maryland residents need to act now.

This law is set to reshape how organisations collect, store, and manage consumer data online, and failure to comply could mean legal and reputational consequences.

In this blog, we’ll explain what the Maryland Online Data Privacy Act means for businesses, outline key compliance obligations, and show how consent management platforms can help you stay compliant with confidence

Understanding the Maryland Online Data Privacy Act (MODPA)

The Maryland Online Data Privacy Act (MODPA) is one of the most comprehensive state-level privacy laws in the United States. It aligns closely with principles from the EU’s GDPR and California’s CCPA, but with its own Maryland-specific standards.

The Act strengthens consumer control over personal data and ensures businesses handle information transparently, lawfully, and responsibly.

The purpose of MODPA is clear: to give Maryland residents the right to decide how their data is collected, shared, and used. For businesses, it’s a call to establish stronger data governance and adopt systems that can manage user consent efficiently.

Who Must Comply with MODPA?

MODPA applies to businesses that:

Conduct business in Maryland or target Maryland residents.
Process personal data of 35,000 or more consumers annually.
Earn revenue from the sale of personal data of 10,000 or more consumers.

Unlike some state laws, MODPA excludes small businesses and organisations covered by federal frameworks such as HIPAA or GLBA. Still, the low applicability threshold means even mid-sized digital enterprises could fall under its scope.

Core Consumer Rights Under MODPA

The Maryland Online Data Privacy Act empowers residents with the right to control their personal information. Businesses must be ready to honour these rights promptly and transparently:

Right to Access: Consumers can request and review their personal data.
Right to Correct: Inaccurate or incomplete information must be corrected.
Right to Delete: Users can request the deletion of personal data collected.
Right to Data Portability: Consumers can transfer their data easily.
Right to Opt Out: Users can opt out of data sales or targeted advertising.

Requests must be handled within 45 days, emphasising the need for automated and well-structured compliance workflows.

Business Obligations Under MODPA

Businesses covered under MODPA must comply with specific operational and technical standards, including:

Data Minimisation: Collect only what’s essential for stated purposes.
Purpose Limitation: Avoid processing for unrelated purposes without fresh consent.
Sensitive Data Protection: Obtain explicit opt-in consent for data such as biometrics, geolocation, or health information.
Transparency: Provide detailed and easily accessible privacy notices.
Security Measures: Use encryption, access control, and data risk assessments.

The Maryland Attorney General will oversee enforcement, focusing on transparency, accountability, and fair use of consumer data.

Consent: The Foundation of MODPA Compliance

At the heart of MODPA is user consent. Businesses cannot process personal or sensitive data without clear, informed, and freely given consent. Moreover, users must be able to withdraw that consent easily.

This creates an operational challenge for organisations managing data at scale. That’s where consent management platforms (CMPs) like Seers Ai make a measurable difference.

How MODPA Differs from Other State Privacy Laws

While Maryland’s MODPA shares similarities with CCPA, VCDPA, and Colorado’s Privacy Act, it stands out in several ways:

Lower threshold: Applies to controllers handling data of just 35,000 consumers.
Explicit consent rule: Requires prior consent for processing sensitive data, not just notice-based control.
Comprehensive opt-out rights: Expands beyond targeted ads to include profiling and automated decision-making.
Strict data retention standards: Personal data must be retained only for as long as necessary.

For businesses already compliant with other state laws, MODPA still requires additional updates, particularly in how consent and data purpose are managed

Preparing for MODPA: Action Steps for Businesses

To ensure compliance by April 2026, organisations should act early and systematically. Key preparation steps include:

Assess Data Flows: Identify what personal data is collected, where it’s stored, and who accesses it.
Update Privacy Policies: Align them with MODPA’s disclosure and opt-out requirements.
Deploy Consent Management Platform: Tools like Seers.ai automate consent collection and storage.
Conduct Risk Assessments: Evaluate potential data processing risks through regular DPIAs.
Train Teams: Educate staff on privacy practices and consumer rights management.

A proactive strategy not only ensures legal compliance but also enhances customer trust and brand credibility.

How Seers Ai Simplifies MODPA Compliance

Managing compliance manually is no longer practical for multi-state businesses. Seers Ai, an AI-powered consent management platform, helps companies comply with MODPA effortlessly by:

Auto-detecting Maryland users and adjusting consent banners.
Enabling 1-click opt-in/opt-out preferences.
Maintaining audit-ready consent records.
Integrating seamlessly with websites through no-code implementation.

With Seers’ Ai Auto Setting, your business stays compliant with evolving privacy laws like MODPA, without compromising user experience.

Final Insights

The Maryland Online Data Privacy Act (MODPA) represents a major shift in how businesses approach data governance. It challenges organisations to prioritise transparency and consent while ensuring smooth digital experiences. Compliance is not just a legal checkbox; it’s a trust-building opportunity.

As the April 2026 enforcement date approaches, now is the time to evaluate your consent systems and prepare for a smarter, compliant, and more transparent future in data privacy.

Turn Compliance into Confidence with Seers Ai

Streamline MODPA compliance effortlessly. Seers Ai automates consent management, minimises compliance risks, and builds customer trust, giving your business the confidence to lead in data privacy.

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Frequently Asked Questions (FAQs)

Does the Maryland Online Data Privacy Act apply to businesses outside Maryland?

Yes. Even if a business isn’t physically located in Maryland, it must comply with MODPA if it offers goods or services to Maryland residents or monitors their online behaviour. This aligns MODPA with global privacy standards like GDPR, extending its reach beyond state borders for companies handling Maryland consumers’ personal data.

What counts as sensitive personal data under MODPA?

Sensitive personal data includes information about race, ethnicity, religious beliefs, health, sexual orientation, biometric identifiers, precise geolocation, and children’s data. Processing this data requires prior, explicit consent from the consumer. Businesses must also provide clear disclosure of how such information is collected, used, and stored.

Are small businesses exempt from MODPA requirements?

Some small businesses are exempt, but not all. Exemption generally applies if a business processes data for fewer than 35,000 consumers annually and doesn’t profit from selling personal information. However, if a small company engages in targeted advertising or data sales, parts of MODPA may still apply, depending on its operations.

What are the penalties for violating MODPA?

The Maryland Attorney General enforces MODPA and may impose civil penalties for violations. Fines can vary depending on the severity and whether the business fails to address issues after being notified. Beyond financial consequences, non-compliance can result in reputational harm and potential restrictions on data processing activities.

How does MODPA handle data processing for children and minors?

MODPA introduces strict protection for minors’ data, requiring verified parental consent before processing information of children under 13. For users aged 13–17, businesses must provide clear opt-out options for targeted advertising and data sharing. This aligns with child-safety principles in federal COPPA regulations.

Can businesses use automated decision-making under MODPA?

Yes, but with limits. MODPA allows automated decision-making only when it’s transparent, necessary, and doesn’t harm consumers. If profiling or AI-based decisions significantly affect users, businesses must disclose these processes and provide a means for consumers to contest such decisions or request human review.

Rimsha Zafar

Rimsha is a Senior Content Writer at Seers AI with over 5 years of experience in advanced technologies and AI-driven tools. Her expertise as a research analyst shapes clear, thoughtful insights into responsible data use, trust, and future-facing technologies.