Emerging Trends and Regulatory Shifts in Privacy and Cybersecurity for 2025

Data privacy and cybersecurity are evolving rapidly, with significant legal and regulatory shifts expected in early 2025. According to a Stoel Rives article, newly elected federal and state governments will likely reshape the legal landscape, bringing new business challenges and compliance requirements.

At the state level, numerous privacy laws are set to take effect, and regulatory agencies are expected to enforce compliance rigorously. States such as Delaware, Iowa, and New Hampshire have already enacted general privacy laws, with Tennessee, Minnesota, and Maryland following later in the year. This ongoing wave of state-level legislation underscores the continued fragmentation of privacy regulations across the U.S.

Federal efforts to create a unified privacy framework remain stalled, but regulatory bodies like the Federal Trade Commission (FTC) and the California Privacy Protection Agency (CPPA) continue to refine their enforcement strategies. Under new leadership, the FTC may shift its focus, potentially deprioritizing commercial surveillance rules. Meanwhile, the CPPA has taken an active role in enforcement, issuing settlements against non-compliant data brokers and providing guidance on critical privacy issues. In April, the agency advised businesses on applying data minimization principles when responding to consumer requests, and in September, it emphasized the importance of clear, user-friendly interfaces for privacy choices.

Beyond traditional privacy concerns, the increasing use of biometric data has drawn heightened regulatory scrutiny. Some states have amended their privacy laws to expand protections for biometric identifiers, signaling a growing focus on this area. At the same time, cybersecurity remains a pressing issue, particularly in the healthcare sector, where reported security incidents have surged. Regulatory updates to HIPAA and potential federal cybersecurity legislation indicate an era of increased oversight and stricter compliance requirements.

Internationally, regulatory developments continue to shape the compliance landscape. The European Union recently enacted the AI Act, introducing a structured framework for AI governance. This law is expected to influence global best practices and may prompt similar regulatory efforts in the U.S.

In response to these evolving regulations, attorneys and businesses should prioritize updating and refining public-facing compliance materials, including privacy policies and consent mechanisms. Additionally, organizations must strengthen their data privacy and cybersecurity practices by conducting risk assessments, reviewing data processing agreements, and ensuring compliance with automated decision-making regulations, including profiling. Proactive adaptation to these legal and regulatory changes will be essential for maintaining compliance in the shifting privacy and cybersecurity landscape.