U.S. Privacy and Data Protection Updates | Insights | Q3 2025 (State Law)

Privacy Regulation Is at a Turning Point: What Businesses Need to Know

Introduction 
2025 has quickly proven to be the year where enforcement puts real pressure on businesses. Between landmark settlements, evolving cookie consent rules, and growing state and federal involvement, staying aware of privacy regulations is critical for companies across all industries. 
 
With regulators taking a closer look at how businesses collect, store, and use personal information, organizations find themselves challenged not only to comply but to rethink how privacy fits into their customer experience.

GPC Requirement and Trending Shift from Implied to Explicit Consent 
Today, regulators expect businesses to fully comply with opt-out rights for data “sales or sharing,” including for cookie practices; this also means recognition of Global Privacy Control (GPC) settings (see our related client alert about key updates to make in business privacy policies). Further, clear, affirmative consent from users before their data is processed for advertising purposes (similar to the EU) is becoming more of a trend, even where laws require opt-out rights, and can help deter unwanted legal action. That means pre-checked boxes, vague banners, or confusing navigation paths are falling out of favor. Additionally, companies must securely document user choices and ensure withdrawal of consent is as easy as giving it.

Clear opt-in consent is also required in certain situations, such as if businesses are collecting certain “sensitive” personal information or data on minors (e.g., targeted ads to those under 16; and if users are under 13, opt-in consent must be provided by a parent). Even where there is no “sensitive” or minor/child data, opt-in consent is emerging as a best practice in the U.S. and especially if there are certain data practices or targeting of consumers in specific states.

Increasing Scrutiny on Dark Patterns and Manipulative Consent Flows 
Dark patterns—design tactics that nudge, or sometimes trick, users into making privacy decisions they otherwise wouldn’t—are being called out by regulators. Authorities across the U.S. have echoed the point: transparency is non-negotiable in 2025, and deceptive interface design will not hold up under enforcement.

California’s Groundbreaking $1.55 Million CCPA Settlement 
The largest California Consumer Privacy Act (CCPA) settlement to date by the California Attorney General made headlines in 2025 and quickly set a precedent for privacy enforcement.

California Attorney General Rob Bonta announced a $1.55 million settlement against a major retailer accused of failing to honor consumer opt-out requests and improperly sharing personal information with third parties for targeted advertising. Beyond the financial penalty, the case included strict compliance commitments to improve consent management systems.

Why This Enforcement Matters 
Although this case was handled under California law, the message rippled to businesses across the country. California has often set the standard for privacy law enforcement, and this settlement highlights aggressive regulator measurements when companies fail to comply.

Key Takeaways for Businesses

• Regulators are watching for technical failures in honoring consent choices.

• Opt-out mechanisms must be functional, user-friendly, and verifiable.

• Non-compliance risks not only financial penalties, but also significant brand damage.

While state laws have been leading privacy efforts, federal regulators are becoming more assertive and closing gaps in oversight.

Sign of a Converging Federal Standard 
Though Congress has yet to pass a comprehensive federal privacy law, momentum is building. Bipartisan discussions signal that organizations should prepare by aligning practices with the strictest state requirements to cover possible future obligations.

Developments in Colorado, Connecticut, and Others 
California may dominate many headlines, but it isn’t the only player shaping privacy policy. 
The California Attorney General has also announced a “joint investigative privacy sweep” with Attorneys General in Colorado and Connecticut, and numerous states have now enacted comprehensive privacy laws (as well as more specific laws) with varying requirements around consent, sensitive data processing, and consumer rights. While they differ in detail, their collective impact is creating a patchwork of rules that companies must navigate carefully.

What Businesses Should Anticipate from Upcoming State Laws 
Additional states are expected to strengthen privacy legislation in 2025. For businesses, this means tracking regulatory developments has to be a dynamic and ongoing process rather than an occasional compliance project. It’s clear that privacy is no longer a “set-it-and-forget-it” compliance box to tick. Consent management platforms, automated policy updates, and audit-ready record-keeping tools are no longer optional luxuries. They are strategic necessities for managing complex, overlapping privacy obligations.

When customers clearly understand how their data is collected and used, they are more willing to share it. Companies that embrace transparency often see stronger engagement and longer-term brand loyalty. By reframing privacy as part of a positive user experience, businesses can transform what many see as a regulatory burden into an opportunity to stand out. In competitive marketplaces, respect for consumer rights is increasingly a differentiator. 

Best Privacy Practices for Companies 
Organizations that want to get ahead need strategies that go beyond minimum compliance. Some standard tips include:

• Updating Privacy Notices and Policies: Policies should be updated regularly to reflect evolving obligations, especially around cookies, advertising, and consumer consent. Transparency must be clear, comprehensive, and easy to understand.

• Training Internal Teams on Emerging Obligations: Employees, from marketing to engineering, need to understand privacy obligations in their daily work. Training reduces risk of unintentional violations and creates a culture of shared accountability.

• Auditing Data Privacy and Security Practices: Internal and external data-related assessments and audits, as well as ongoing monitoring of processes, are key.

• Building Trust and Accountability: Privacy must become part of the company DNA. This means proactive communication, visible leadership commitments, and processes rooted in respect for consumer control of their own data.

Staying Ahead in a Rapidly Changing Privacy Climate 
For businesses, the challenge is clear: it’s no longer enough to react to regulations; organizations need to anticipate them, embed privacy into their operations, and turn compliance into a trust-building advantage.

Kronenberger Rosenfeld, LLP regularly advises clients regarding data and privacy compliance. Contact our firm today using our online case submission form.

FAQs  

1. What is the biggest trend in cookie consent rules for 2025? 
Companies need to check compliance with notice requirements, opt-out rights, and recognition of GPC settings. Also, the move from implied consent to clearer explicit, opt-in consent is becoming more of a trend (even if data is not particularly sensitive), making it harder for companies to rely on vague banners or pre-checked boxes.

2. How does California’s $1.55 million settlement affect businesses outside the state? 
It signals to companies nationwide that weak compliance mechanisms won’t be tolerated, setting a strong precedent for how regulators might act elsewhere.

3. Is a federal privacy law expected in 2025? 
While not guaranteed, momentum in Congress suggests growing support for a national framework, especially since multiple states now have their own regulations.

4. What role does consumer trust play in privacy compliance? 
Beyond legal risk, businesses that embrace transparency often gain customer loyalty and competitive advantage. Privacy has become a trust currency in today’s market.

5. What are the best tools for managing ongoing compliance? 
Consent management platforms, automated regulatory tracking systems, and comprehensive vendor management solutions are essential tools for maintaining compliance in 2025.