SB 5
Consumer data protection.
Creates new compliance requirements or restricts common AI uses. Action needed.
TL;DR
Indiana's SB 5 creates comprehensive consumer data privacy rules similar to California's CCPA and Europe's GDPR. The law gives Indiana residents rights to access, delete, and opt out of the sale of their personal data, while requiring businesses that collect data from Indiana residents to implement specific privacy practices and safeguards.
How This Might Impact Your Business
Applies to companies with over $25 million in annual revenue OR that process data from 100,000+ Indiana consumers OR derive 50% of revenue from selling consumer data
Companies must provide clear privacy notices detailing what data they collect, how it's used, and with whom it's shared
Indiana residents can request copies of their data, demand deletion, and opt out of data sales (companies have 45 days to comply)
Requires data protection assessments for high-risk processing activities like targeted advertising or selling sensitive data
Penalties up to $7,500 per violation, enforced by Indiana Attorney General
Effective date: January 1, 2026, giving businesses 18+ months to prepare
Exempts HIPAA-covered entities, financial institutions under Gramm-Leach-Bliley, and nonprofit organizations
What Should You Do
Schedule a data audit with IT and legal teams to identify what Indiana consumer data you collect, store, and share
Review your privacy policy and update it to include Indiana-specific disclosures by Q3 2025
Build or upgrade systems to handle consumer requests for data access, deletion, and opt-outs within 45-day windows
If you use AI for targeted advertising or consumer profiling, document your data protection assessments
Track the Attorney General's office for implementation guidance expected by mid-2025
Who It Affects
Status Timeline
introduced
Signed by the Governor
May 1, 2023
introduced
Signed by the Governor
May 1, 2023
AI-generated analysis for informational purposes only. Not legal advice. Always consult a qualified attorney for legal guidance.
Need help preparing your team for AI compliance?
Talk to LaunchReady about AI Training