The new law that threatens small businesses in Florida
The current governor of Florida, Ron DeSantis signed in June the SB 262 Act, known as “Digital Bill of Rights," which will strongly affect small businesses in Florida.
We tell you the main threats generated by this law, which will enter into full force on July 1, 2024, besides some of its sections go effective this month:
- Affects the effectiveness of digital advertising.
Advertising through digital media has allowed many businesses to reach their consumers in a direct and effective way. Many companies that do not have the funds to pay for physical or television advertising have seen in digital advertising an economical way to reach their customers.
While this law seeks to safeguard the privacy of consumers, it will affect the effectiveness of advertising, so consumers will receive advertising for products that might not be relevant to them, and a greater investment will be required to achieve the same amount of sales.
- Benefits foreign competitors at the expense of American business.
By increasing regulations on American companies, it will open up a space that can be filled by foreign competitors. While this law seeks to regulate large corporations, known as "controllers," along the way it affects small businesses by imposing responsibilities and limitations on them.
- Advertising service providers will decrease, which will increase costs.
Advertising service providers will be forced to consolidate, increasing the costs of their services, and thereby decreasing their revenues.
- It will be a burden for business to seek advice and comply with this standard.
Many small businesses will need to consult with lawyers to ensure that they comply with the handling of the data they obtain from their clients. While it won't have a long-term effect, it's important to be sure to check: first, if your activities are regulated; secondly, if you have the processes for data management; and third, whether you are properly handling the data.
If you have a business in Florida, which generates income, we recommend you to review the responsibilities and limitations that arise from this law, especially in regards to privacy notices to your customers.
