SB 358
Consumer data protection.
Creates new compliance requirements or restricts common AI uses. Action needed.
TL;DR
Senator Freeman's SB 358 requires businesses to get explicit consent before using AI to analyze consumer data in Indiana. Companies would need to tell customers exactly how AI processes their information, let them opt out, and delete data on request. This brings GDPR-style data rights specifically to AI systems.
How This Might Impact Your Business
Any company using AI to process Indiana residents' data must obtain written consent first, including e-commerce sites, apps, and B2B software with Indiana users
Businesses must provide clear explanations of what AI does with consumer data (not just privacy policy updates) within 90 days of the law taking effect
Companies must build systems to honor data deletion requests within 30 days and allow consumers to opt out of AI processing
Violations carry penalties up to $7,500 per incident, with the Indiana Attorney General enforcing
Small businesses processing data from fewer than 5,000 Indiana residents annually are exempt
Healthcare providers and financial institutions already under HIPAA or GLBA have partial exemptions for regulated data
What Should You Do
Map all AI tools that touch Indiana consumer data (chatbots, recommendation engines, pricing algorithms) by department
Schedule legal review of current consent mechanisms and privacy policies for AI-specific disclosures
Assess technical requirements for building opt-out and deletion capabilities into your AI systems
Monitor the bill's progress through the Indiana House (already passed Senate, House vote expected by March)
Budget for potential compliance costs including consent management systems and staff training
Who It Affects
Status Timeline
passed chamber
Committee report: amend do pass, adopted
February 17, 2022
passed chamber
Committee report: amend do pass, adopted
February 17, 2022
AI-generated analysis for informational purposes only. Not legal advice. Always consult a qualified attorney for legal guidance.
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