Minnesota’s Privacy Law Data Inventory Requirement

The Minnesota Consumer Data Privacy Act (MCDPA), effective July 31, 2025, includes a unique requirement for controllers to maintain a data inventory as part of their data security practices. Specifically, the law states:

“A controller shall establish, implement, and maintain reasonable administrative, technical, and physical data security practices to protect the confidentiality, integrity, and accessibility of personal data, including the maintenance of an inventory of the data that must be managed to exercise these responsibilities. The data security practices shall be appropriate to the volume and nature of the personal data at issue.”

Minnesota’s New Privacy Law Drops a Data Inventory Bombshell

If you’re a business that deals with customer data of Minnesota residents think: names, emails, maybe even what someone bought last Tuesday. You think you’ve got it under control, but Minnesota’s privacy law has news for you. Tucked into the state’s shiny new Consumer Data Privacy Act, there’s a rule that’s making companies sit up straight: you’ve gotta keep a detailed inventory of every scrap of personal data you touch. No, this isn’t just a suggestion or some corporate best practice it’s the law, and Minnesota’s the first state to make it crystal clear. Starting July 31, 2025, if you’re handling data for enough Minnesotans, you better know exactly what’s in your digital filing cabinet, or you could be staring down a $7,500 fine per violation. Let’s unpack this game changer and what it means for businesses scrambling to comply and how Captain Compliance can help with this new privacy legal requirement.

This isn’t your typical privacy law fine print. Minnesota’s basically saying, “If you’re collecting people’s info, you better have a map of where it’s going and why.” It’s like being told to clean your messy garage and label every box before the state inspector shows up. The catch? The law doesn’t spell out exactly what this “data inventory” should look like, leaving companies to figure it out while the clock ticks. With the McDonald’s McHire hack fresh in our minds where a weak password spilled 64 million applicants’ data—this feels like a scramble for businesses trying to figure out how to organize and get compliant fast. Minnesota’s not messing around, and businesses better get their act together before the fines start flying as they are expected to happen.

Key Points of the Data Inventory Requirement:

1. Mandatory Data Inventory: Minnesota is the first U.S. state to explicitly mandate that controllers maintain a data inventory as part of their compliance with a comprehensive consumer privacy law. This inventory is intended to facilitate accountability and ensure that data processing aligns with legal obligations and internal privacy policies.
2. Purpose: The data inventory supports the controller’s ability to protect personal data’s confidentiality, integrity, and accessibility. It helps organizations understand what personal data they collect, process, and store, enabling better compliance with consumer rights requests (e.g., access, deletion, or opt-out).
3. No Specific Guidance: The MCDPA does not provide detailed guidance or a specific definition of what the data inventory must include or its format. This lack of specificity leaves room for interpretation, but it implies that the inventory should be comprehensive enough to cover all personal data managed by the controller.
4. Context Within Security Practices: The data inventory requirement is framed as part of “reasonable” data security practices, tailored to the volume and nature of the personal data processed. While data inventories are often considered a privacy compliance tool rather than a security measure, the MCDPA categorizes them under security obligations.
5. Compliance Support: The inventory aids in mapping data flows, identifying categories of personal data, and understanding the purposes for collection, which is critical for responding to consumer rights requests and conducting data protection assessments (e.g., for targeted advertising, profiling, or sensitive data processing).

Additional Context For In House Chief Privacy Officers:

• Unique to Minnesota: Unlike other U.S. state privacy laws (e.g., California’s CCPA or Connecticut’s CTDPA), the MCDPA explicitly requires a data inventory, making it a pioneering provision. Data mapping is considered a best practice under other laws and the EU’s GDPR, but Minnesota is the first to codify it as a legal requirement.
• Related Obligations: Controllers must also document and maintain policies and procedures for MCDPA compliance, including the contact information of a chief privacy officer (or equivalent) and descriptions of data privacy practices, such as data minimization and retention policies. The data inventory supports these broader governance requirements.
• Enforcement: The Minnesota Attorney General enforces the MCDPA, with civil penalties up to $7,500 per violation. A 30-day cure period is available until January 31, 2026, after which non-compliance (including failure to maintain a data inventory) could lead to fines. Companies are scrambling to get everything in place by the beginning of 2026.

Practical Implications For Your Business:

Businesses subject to the MCDPA (those processing personal data of 100,000+ Minnesota consumers annually or deriving over 25% of revenue from selling personal data of 25,000+ consumers) should:

• Create a comprehensive inventory of personal data, detailing categories, purposes, and flows.
• Integrate the inventory into their security and privacy programs to ensure compliance by July 31, 2025.
• Consider leveraging tools like data mapping platforms to automate inventory creation and maintenance.

While the MCDPA’s data inventory requirement is groundbreaking, its lack of specificity means businesses must proactively interpret and implement it, drawing on best practices from GDPR and other state laws. As we talk to dozens of other lawyers and privacy consultants we’re able to provide advice to any of our clients on best practices and solutions to satisfy Minnesota.

Key Points of the Data Inventory Requirement:

1. Mandatory Data Inventory: Minnesota is the first U.S. state to explicitly mandate that controllers maintain a data inventory as part of their compliance with a comprehensive consumer privacy law. This inventory is intended to facilitate accountability and ensure that data processing aligns with legal obligations and internal privacy policies.
2. Purpose: The data inventory supports the controller’s ability to protect personal data’s confidentiality, integrity, and accessibility. It helps organizations understand what personal data they collect, process, and store, enabling better compliance with consumer rights requests (e.g., access, deletion, or opt-out).
3. No Specific Guidance: The MCDPA does not provide detailed guidance or a specific definition of what the data inventory must include or its format. This lack of specificity leaves room for interpretation, but it implies that the inventory should be comprehensive enough to cover all personal data managed by the controller.
4. Context Within Security Practices: The data inventory requirement is framed as part of “reasonable” data security practices, tailored to the volume and nature of the personal data processed. While data inventories are often considered a privacy compliance tool rather than a security measure, the MCDPA categorizes them under security obligations.
5. Compliance Support: The inventory aids in mapping data flows, identifying categories of personal data, and understanding the purposes for collection, which is critical for responding to consumer rights requests and conducting data protection assessments (e.g., for targeted advertising, profiling, or sensitive data processing)

Unique Minnesota Privacy Requirement Context:

Unique to Minnesota: Unlike other U.S. state privacy laws (e.g., California’s CCPA or Connecticut’s CTDPA), the MCDPA explicitly requires a data inventory, making it a pioneering provision. Data mapping is considered a best practice under other laws and the EU’s GDPR, but Minnesota is the first to codify it as a legal requirement.

Related Obligations: Controllers must also document and maintain policies and procedures for MCDPA compliance, including the contact information of a chief privacy officer (or equivalent) and descriptions of data privacy practices, such as data minimization and retention policies. The data inventory supports these broader governance requirements.

Enforcement of MCDPA: The Minnesota Attorney General enforces the MCDPA, with civil penalties up to $7,500 per violation. A 30-day cure period is available until January 31, 2026, after which non-compliance (including failure to maintain a data inventory) could lead to fines.

How To Prepare for MCDPA:

Businesses subject to the MCDPA (those processing personal data of 100,000+ Minnesota consumers annually or deriving over 25% of revenue from selling personal data of 25,000+ consumers) should immediately:

• Create a comprehensive inventory of personal data, detailing categories, purposes, and flows.
• Integrate the inventory into their security and privacy programs to ensure compliance by July 31, 2025.
• Consider leveraging data privacy software tools like data mapping platforms to automate inventory creation and maintenance.

While the MCDPA’s data inventory requirement is groundbreaking, its lack of specificity means businesses must proactively interpret and implement it, drawing on best practices from GDPR and other state privacy frameworks. With proper guidance and great privacy hygiene issues can be avoided to satisfy the Minnesota regulators.