Minnesota Consumer Data Privacy Act 2025: Key Insights

July 23, 2025

Author: Rimsha Zafar

Are you prepared for the new wave of data privacy regulations sweeping across the U.S.? If your business operates in or targets Minnesota residents, you need to start preparing now. The Minnesota Consumer Data Privacy Act (MCDPA) is set to take effect on July 31, 2025.

Much like the GDPR in Europe or the CCPA in California, the MCDPA empowers individuals with greater control over their personal information. However, it also introduces some unique rules—especially around profiling and data assessments—that set it apart from other state laws.

This blog breaks down the MCDPA’s scope, consumer rights, compliance steps, and enforcement details. Read on to get practical insights for your business.

Understanding Minnesota Consumer Data Privacy Act (MCDPA)

What is Minnesota Consumer Data Privacy Act (MCDPA)?

The Minnesota Consumer Data Privacy Act (MCDPA) is a comprehensive state-level privacy law that grants Minnesota residents enforceable rights over how their personal data is collected, used, and shared. It imposes legal obligations on businesses to adopt transparent, fair, and accountable data practices across their operations.

The law was signed in 2024 and is set to take effect on July 31, 2025. It covers key areas such as consumer consent, limitations on profiling, mandatory data protection assessments, and detailed compliance documentation.

Why does MCDPA matter?

With rising consumer expectations around privacy, laws like the MCDPA reflect a national shift toward stricter data governance. For businesses, it’s not just a legal necessity but also a trust-building opportunity.

The MCDPA matters because it imposes detailed compliance requirements and significant penalties for violations. More importantly, it sets a precedent that could influence federal regulations in the future.

Scope & Applicability of MCDPA

Not all businesses are subject to the MCDPA. It applies only to those that handle large volumes of Minnesota residents’ personal data or profit significantly from it.

Covered Entities and Thresholds

The MCDPA applies to the following types of entities that meet specific thresholds under the law:

Conduct business in Minnesota or target Minnesota residents.
And meet one of the following thresholds:
- Control or process personal data of at least 100,000 consumers annually, or
- Derive over 25% of gross revenue from selling personal data of at least 25,000 consumers.

Understanding these thresholds is critical for determining whether your business needs to comply.

Exemptions

Several sectors are explicitly excluded from the MCDPA, either due to existing federal laws or institutional structures:

State and local governments,
Tribal nations,
Financial institutions under GLBA,
Entities regulated by HIPAA,
Higher education institutions (until 2029).

These exclusions ensure the law doesn’t overlap with existing federal or institutional frameworks.

Key Consumer Rights Under the MCDPA

The MCDPA introduces a strong set of consumer rights, making transparency and user control a top priority for any organisation handling personal data.

Transparency and Access

Minnesota residents will gain expanded data privacy rights under the MCDPA, granting them greater transparency and control over personal information.

The right to know whether their personal data is being processed.
Access to the categories and specific pieces of data collected.
The right to correct inaccuracies,
The ability to request deletion of personal data.

These rights allow individuals to take control over their personal information in an informed and proactive way.

Data Portability and Opt-Out Rights

Consumers can request their data in a portable, readily usable format. They can also opt out of:

Targeted advertising,
Sale of personal data,
Profiling that produces legal or similarly significant effects.

Offering these opt-out rights demonstrates a commitment to transparency and ethical data practices.

Profiling and Automated Decision-Making

Profiling and automation present new legal obligations. The MCDPA gives consumers the right to:

Be informed of automated decisions made about them.
Request an explanation of such decisions.
Opt out of profiling altogether.

This adds layers of accountability, especially for businesses using AI algorithms in marketing, hiring, or lending.

Business Obligations Under the MCDPA

Complying with the MCDPA requires more than policy updates—it demands internal changes to how businesses collect, process, and respond to consumer data.

Privacy Notice Requirements

Your company must publish a clear and accessible privacy notice that outlines the following important information in a transparent way:

Categories of personal data collected.
Purpose for processing.
Categories of third parties with whom data is shared.
Consumer rights and how to exercise them.
Contact information for the designated privacy officer.

Creating a clear notice enhances consumer trust and legal defensibility, ensuring your business meets MCDPA requirements effectively.

Data Protection Assessments

Controllers must conduct risk assessments for any data processing activity that poses a significant risk to individuals, including cases that:

Involves sensitive personal data.
Is used for targeted advertising or profiling.
Presents a heightened risk of harm to consumers.

These assessments should be documented, reviewed periodically, and made available to the Minnesota Attorney General upon request.

Handling Consumer Requests

You must respond to verified consumer requests within 45 days. This includes honouring opt-out preferences, correcting data, or deleting it entirely. Extensions of up to 45 more days may be permitted if requests are complex.

Businesses must also establish an appeals process for denied requests to ensure fairness and transparency.

Preparing for MCDPA Compliance

The earlier you start planning for MCDPA compliance, the easier it becomes to avoid disruption and meet obligations confidently.

To stay compliant with the MCDPA, businesses should:

Map Data Flows: Understand where personal data is collected, stored, and processed.
Update Policies: Revise your privacy notices and internal policies to reflect new rights and obligations.
Train Staff: Ensure your team, especially those in marketing and customer service, understand the new rules.
Implement Opt-Out Tools: Set up easy-to-use controls for consumers to manage their data preferences.
Review Vendor Contracts: Make sure all processors meet MCDPA standards and assist with consumer rights.

Taking these steps early can reduce risk, improve data hygiene, and streamline your compliance roadmap.

Enforcement and Penalties

Non-compliance with the MCDPA comes with serious legal and financial consequences—here’s what enforcement looks like and how penalties are structured.

Role of the Minnesota Attorney General

Enforcement is handled solely by the Minnesota Attorney General. While individuals cannot sue businesses directly, the Attorney General has wide authority to:

Investigate complaints or suspected violations.
Issue cease-and-desist orders.
Impose civil penalties up to $7,500 per violation.
Seek injunctive relief to halt ongoing noncompliance.

Penalties for Non-Compliance

Each violation can lead to steep fines, particularly if multiple consumers are affected. The risk escalates for:

Repeated violations,
Ignoring consumer rights requests,
Failing to maintain proper documentation.

Beyond fines, businesses face reputational harm and potential loss of customer trust.

Related Laws: Surveillance & Breach Notification

Minnesota strengthens its privacy environment with additional regulations that businesses must also respect to stay compliant and build trust.

Minnesota One Party Consent

Businesses must be mindful of Minnesota’s one-party consent law when recording calls or monitoring communications. At least one participant must consent to any recording, which aligns with the state’s focus on protecting individual privacy.

Failure to comply can result in legal exposure and reputational harm.

Minnesota Data Breach Notification Law

Under the Minnesota data breach notification law, businesses must disclose any data breaches that affect Minnesota residents. Notification must occur without unreasonable delay and include:

Description of the breach.
Types of data affected.
Measures taken to address the breach.
Contact info for the company and credit reporting agencies.

Failing to comply with the Minnesota data breach law can result in regulatory action and financial penalties.

Why Businesses Should Pay Attention

Privacy isn’t just about compliance anymore—it’s a business differentiator that can strengthen customer loyalty and competitive positioning.

Ignoring the MCDPA could result in reputational damage and financial penalties. More importantly, consumers are increasingly expecting transparency and control over their personal data.

Getting your house in order today will prepare your business for not just the MCDPA, but also for any future federal legislation.

Final Thoughts: Get Ready Before It’s Too Late

The MCDPA is more than just another compliance obligation—it’s a shift in how data should be handled across business operations. If your organisation handles the personal information of Minnesota residents, it’s time to act.

Start by mapping your data practices, updating your privacy documentation, and establishing clear opt-out mechanisms. Doing so will not only help you meet MCDPA requirements but also demonstrate to your customers that you take privacy seriously.

Don’t wait until the deadline. Prepare now—and lead the way in responsible data stewardship.

Automate Compliance and Build Trust with Seers AI

Tired of struggling with global privacy laws and updates? Let Seers AI handle it all. Our AI-powered CMP delivers one-click compliance across MCDPA, GDPR, CCPA, and beyond—so you never miss a regulation.

Start Free Now

Frequently Asked Questions (FAQs)

MCDPA aligns with CCPA/GDPR on rights like access, deletion, and portability, but it also introduces distinctive mandates—such as mandatory privacy officer appointment, profiling transparency, and formal risk assessments—making compliance more structured and rigorous than many other laws.

What defines “profiling” under the MCDPA?

Under MCDPA, profiling refers to any automated processing aimed at evaluating, predicting, or influencing individuals’ personal preferences, behaviours, or performance. Absent explicit user consent, businesses must allow consumers to opt out and provide transparent explanations of such profiling mechanisms.

Yes. Minnesota’s one-party consent rule means that businesses must secure consent from at least one recording party before capturing calls or communications. MCDPA compliance cuts deeper: it also restricts profiling and personal data use tied to those communications, demanding informed notice plus streamlined opt-out options.

When must businesses report a data breach under Minnesota law?

Under Minnesota’s data breach notification law, businesses must report any breach affecting residents “without unreasonable delay.” Notifications must include affected data types, incident details, response measures, and contact information. While MCDPA governs data use, the breach law ensures transparency in incident response and consumer protection.

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.