Nevada Bills Would Broaden State’s Right To Opt-Out Of Sale of Covered Information

Husch Blackwell LLP

Keypoint: Proposed bills would amend Nevada privacy legislation to provide consumers with a broader right to opt out of sales.

In 2019 – shortly after the CCPA was enacted – Nevada amended its online privacy notice statutes, NRS 603A.300-360, to provide consumers with the right to opt out of sales. However, contrary to the CCPA’s broad definition of “sale,” the Nevada law defines sale narrowly as “the exchange of covered information for monetary consideration by the operator to a person for the person to license or sell the covered information to additional persons.”

Those familiar with the CCPA will note that Nevada’s definition does not refer to “other valuable consideration” and requires the exchange to be for the “person to license or sell the covered information to additional persons.” The law does not allow for a private right of action and provides five exceptions to the definition of sale. (To read more about the legislative history of the law and our analysis, visit here.)

The end result is that, with its narrow scope, Nevada’s right to opt out of a sale has never had a large impact in privacy law. However, that could potentially change this year.

On March 17, 2021, Nevada lawmakers introduced AB323 and SB260. Although the bills are focused on adding a new “data broker” category to the Nevada law, they also would amend the law’s definition of sale to state: “the exchange of covered information for monetary consideration by an operator or data broker to another person.” In so doing, the bills would eliminate the requirement that a person license or sell the information after receiving it from an operator. The amendment would provide consumers with a far broader right to opt out of sales and would likely encompass more companies with its broad scope.

Of note, the right to opt-out would only apply to “covered information,” which is defined more narrowly than the CCPA’s definition of “personal information.” However, the right would still apply to (1) first and last names; (2) home or other physical addresses which include the names of a street and the names of a city or town; (3) email addresses; (4) telephone numbers; (5) Social Security numbers; and (6) identifiers that allow a specific person to be contacted either physically or online.

Both bills are currently in committee.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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