The recent passage of House Bill 78 in the Pennsylvania House of Representatives as a promising development in safeguarding consumer rights amid rapid digital expansion. Sponsored by Representatives Stephenie Scialabba (R-Butler) and Ed Neilson (D-Philadelphia), this legislation, known as the Consumer Data Privacy Act, seeks to empower Pennsylvania residents with greater control over their personal information. By establishing clear duties for data controllers and processors, the bill addresses longstanding gaps in state law, aligning Pennsylvania more closely with the 20 states that already boast comprehensive privacy statutes, such as neighboring Delaware, Maryland, New Jersey, and Virginia.
Background of House Bill 78
The push for HB 78 stems from the vulnerabilities inherent in our data-driven society, where personal information is routinely collected, stored, and monetized without adequate oversight. As Rep. Scialabba noted, consumers often lack insight into how their data is utilized, whether it remains secure, or if it is shared with third parties, leaving them exposed in an era of frequent breaches. Pennsylvania’s current laws have lagged behind technological advancements, prompting bipartisan support for reforms that prioritize individual liberties without unduly burdening businesses.
The bill, introduced in the 2025-2026 Regular Session on January 14, 2025, underwent several amendments before securing House approval on October 1, 2025, by a 127-76 vote. It now awaits Senate consideration, where further refinements may occur. With co-sponsorship from a diverse group of 22 representatives across party lines, including Reps. Kristine Howard (D), Steven Mentzer (R), Robert Leadbeter (R), Benjamin Sanchez (D), Carol Hill-Evans (D), and others, HB 78 reflects broad consensus on the urgency of privacy protections. The legislation’s memo emphasizes “Protecting Consumer Information and Privacy,” highlighting its role in restoring consumer freedoms in the digital age.
Key Provisions of the Pennsylvania Consumer Data Privacy Act
HB 78 introduces a structured regime that mirrors elements of the California Consumer Privacy Act while tailoring requirements to Pennsylvania’s economic context. The legislation outlines enforceable obligations for entities handling personal data, emphasizing transparency and accountability. Here are the core components, drawn from the bill’s detailed framework:
- Scope and Applicability: The Act applies to controllers that process personal data of at least 100,000 Pennsylvania consumers annually or derive 50% of revenue from data sales involving 25,000 consumers. This low threshold ensures broad coverage, including small businesses engaged in data monetization, a feature that sets it apart from more lenient state laws.
- Definitions: Key terms include “personal data” as any information relating to an identified or identifiable individual, excluding de-identified or publicly available data. “Sensitive data” encompasses racial origins, health details, biometric info, and precise geolocation, requiring explicit consent for processing.
- Duties of Controllers: Entities that decide the purposes and methods of data processing must provide clear notices about data practices, respond to consumer requests for access or deletion within 45 days, and limit data use to what is necessary. Controllers are prohibited from processing sensitive data without obtaining a consumer’s consent and must conduct data protection assessments for high-risk activities like targeted advertising. This provision empowers individuals to exercise rights like opting out of targeted advertising, a tool I often recommend to clients seeking to minimize exposure.
- Duties of Processors: Those acting on behalf of controllers, such as cloud service providers, are required to implement security measures, adhere strictly to instructions, and assist controllers in fulfilling consumer rights requests, ensuring data integrity throughout the supply chain.
- Consumer Rights: Residents gain the ability to confirm data processing, correct inaccuracies, delete data, obtain portable copies, and opt out of sales, targeted ads, and profiling. These rights must be exercised via a verifiable request, with controllers obligated to honor them free of charge twice yearly.
- Enforcement and Penalties: The Attorney General enforces the Act with civil penalties up to $7,500 per violation, following a 30-day cure period for first offenses. No private right of action is included, channeling disputes through public enforcement to avoid litigation overload.
- Exemptions: The law exempts financial institutions under GLBA, health data under HIPAA, and government entities, balancing comprehensiveness with sectoral carve-outs.
The effective date is January 1, 2027, providing a 15-month runway for compliance for when the Pennsylvania privacy law goes live.
Comparison to Neighboring States
Pennsylvania’s proposed Act shares foundational similarities with enacted laws in Virginia (CDPA, effective 2023) and New Jersey (pending as of 2025), both emphasizing opt-out rights and controller duties without private lawsuits. Virginia’s law, like HB 78, requires consent for sensitive data and data protection impact assessments but applies to larger entities (175,000+ consumers). New Jersey’s bill mirrors Pennsylvania’s low thresholds and adds child data protections, potentially influencing Senate amendments. In contrast, Maryland’s 2024 law includes a private right of action after a cure period, a feature absent in HB 78 that could expose Pennsylvania businesses to more litigation if adopted. These alignments facilitate cross-state compliance for multistate operators, a critical consideration in my advisory work.
Broader Implications for Stakeholders
I anticipate HB 78’s potential enactment will catalyze a wave of compliance efforts across sectors like retail, healthcare, and finance. While it positions Pennsylvania among the 14 states actively pursuing privacy legislation—joining the 20 with enacted laws successful passage could elevate the Commonwealth’s standing in consumer protection. Key considerations include:
- For Consumers: Enhanced control over personal data reduces risks of identity theft and unauthorized profiling, promoting digital confidence in everyday interactions. Rights to opt out of profiling could curb discriminatory algorithms, addressing equity concerns.
- For Businesses: Clear guidelines prevent patchwork compliance with varying state laws, though smaller enterprises may need support for implementation, such as through state resources or legal consultations. The cure period offers grace for inadvertent violations.
- Litigation Landscape: Stronger statutory rights could increase Attorney General actions, but the absence of private suits might temper this, drawing from my experience defending against similar claims in other jurisdictions.
- Interstate Alignment: Proximity to enacted states like Virginia underscores the need for harmonization, potentially easing cross-border data flows and reducing costs for e-commerce firms.
- Future Developments: Rep. Scialabba’s leadership in AI and government technology subcommittees suggests this bill could evolve to address emerging threats like algorithmic bias and deepfakes, integrating with federal efforts.
- Economic Impact: By fostering trust, the Act could boost Pennsylvania’s tech sector, attracting investments wary of unregulated data practices.
Potential Challenges and Recommendations
Despite its strengths, HB 78 faces hurdles in the Senate, where business lobbies may push for higher thresholds or broader exemptions to mitigate compliance costs estimated at $500 million statewide. Critics argue the low applicability could burden small firms, potentially stifling innovation in startups reliant on data analytics. Additionally, enforcement relies heavily on the Attorney General’s resources, raising questions about scalability amid rising breaches.
In my practice, I recommend immediate action: Conduct privacy audits to map data flows, update privacy policies for opt-out mechanisms, and train staff on consent protocols. For controllers, prioritizing data minimization—collecting only essential information—will ease assessments. Processors should negotiate robust contracts with indemnity clauses. As Pennsylvania joins the privacy vanguard, proactive adaptation will turn regulatory pressure into competitive advantage.
House Bill 78 PA’s Privacy Law
House Bill 78 represents a vital stride toward treating privacy as a fundamental right in Pennsylvania, echoing Rep. Scialabba’s assertion that data control is essential to liberty. As it progresses through the Senate, stakeholders should prepare for its implications by reviewing data practices and engaging policymakers. In my view, this legislation not only fortifies consumer protections but also signals Pennsylvania’s commitment to ethical innovation. For organizations navigating these changes, I offer guidance on tailored compliance strategies, ensuring seamless integration with existing frameworks.
