Bill Text: IL HB5581 | 2023-2024 | 103rd General Assembly | Introduced

---

Bill Title: Creates the Illinois Privacy Rights Act. Defines terms such as "biometric data", "consumer", "controller", "deidentified data", and "processor". Creates a consumer protection of privacy in which, with some exceptions, provides an individual with the right to: (i) confirm whether or not a controller is processing the consumer's personal data and access such personal data; (ii) correct inaccuracies in the consumer's personal data; (iii) delete personal data provided by or obtained about the consumer; (iv) obtain a copy of the consumer's personal data processed by the controller in a portable and, to the extent technically feasible, readily usable format; and, (v) opt out of the processing of the personal data for purposes of targeted advertising, the sale of personal data, or profiling in furtherance of solely automated decisions that produce legal or similarly significant effects concerning the consumer. Defines a consumer as a resident of this State excluding an individual acting in commercial or employment context. Provides that this Act applies to persons that conduct business in this State or persons that produce products or services that are targeted to residents of this State that during a 1-year period: (i) controlled or processed the personal data of not less than 35,000 unique consumers, excluding personal data controlled or processed solely for the purpose of completing a payment transaction; or (ii) controlled or processed the personal data of not less than 10,000 unique consumers and derived more than 25% of their gross revenue from the sale of personal data. Provides that the Attorney General has the exclusive authority under this Act to enforce violations of it. Makes a violation of this Act an unfair method of competition or any unfair or deceptive act or practice under the Consumer Fraud and Deceptive Business Practices Act. Prohibits a private cause of action under this Act. Effective January 1, 2025.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-02-09 - Referred to Rules Committee [HB5581 Detail]

Download: Illinois-2023-HB5581-Introduced.html

---

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5581 Introduced , by Rep. Hoan Huynh SYNOPSIS AS INTRODUCED:
New Act
Creates the Illinois Privacy Rights Act. Defines terms such as "biometric data", "consumer", "controller", "deidentified data", and "processor". Creates a consumer protection of privacy in which, with some exceptions, provides an individual with the right to: (i) confirm whether or not a controller is processing the consumer's personal data and access such personal data; (ii) correct inaccuracies in the consumer's personal data; (iii) delete personal data provided by or obtained about the consumer; (iv) obtain a copy of the consumer's personal data processed by the controller in a portable and, to the extent technically feasible, readily usable format; and, (v) opt out of the processing of the personal data for purposes of targeted advertising, the sale of personal data, or profiling in furtherance of solely automated decisions that produce legal or similarly significant effects concerning the consumer. Defines a consumer as a resident of this State excluding an individual acting in commercial or employment context. Provides that this Act applies to persons that conduct business in this State or persons that produce products or services that are targeted to residents of this State that during a 1-year period: (i) controlled or processed the personal data of not less than 35,000 unique consumers, excluding personal data controlled or processed solely for the purpose of completing a payment transaction; or (ii) controlled or processed the personal data of not less than 10,000 unique consumers and derived more than 25% of their gross revenue from the sale of personal data. Provides that the Attorney General has the exclusive authority under this Act to enforce violations of it. Makes a violation of this Act an unfair method of competition or any unfair or deceptive act or practice under the Consumer Fraud and Deceptive Business Practices Act. Prohibits a private cause of action under this Act. Effective January 1, 2025.
LRB103 38323 JRC 68458 b
A BILL FOR
HB5581 LRB103 38323 JRC 68458 b
AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Illinois Privacy Rights Act.
Section 5. Definitions. As used in this Act:
(a) "Affiliate" means a legal entity that shares common
branding with another legal entity, or is controlled by, or is
under common control with, another legal entity.
(b) "Control" or "controlled" means ownership of, or the
power to vote, more than 50 percent of the outstanding shares
of any class of voting security of a company; control in any
manner over the election of a majority of the directors or of
individuals exercising similar functions; or the power to
exercise controlling influence over the management of a
company.
(c) "Authenticate" means to use reasonable means to
determine that a request to exercise any of the rights
afforded under paragraphs (1) through (4) of subsection (a) of
Section 20 is being made by, or on behalf of, the consumer who
is entitled to exercise such consumer rights with respect to
the personal data at issue.
(d) "Biometric data" means data generated by automatic

HB5581 - 2 - LRB103 38323 JRC 68458 b
measurements of an individual's biological characteristics,
such as a fingerprint, a voiceprint, eye retinas, irises or
other unique biological patterns, or characteristics that are
used to identify a specific individual. "Biometric data" does
not include a digital or physical photograph, an audio or
video recording, or any data generated from a digital or
physical photograph, or an audio or video recording, unless
such data is generated to identify a specific individual.
(e) "Business associate" has the same meaning as provided
in the Health Insurance Portability and Accountability Act
(HIPAA).
(f) "Child" has the same meaning as provided in the
Children's Online Privacy Protection Act (COPPA).
(g) "Consent" means a clear affirmative act signifying a
consumer's freely given, specific, informed and unambiguous
agreement to allow the processing of personal data relating to
the consumer. "Consent" may include a written statement,
including by electronic means, or any other unambiguous
affirmative action. "Consent" does not include acceptance of a
general or broad terms of use or similar document that
contains descriptions of personal data processing along with
other, unrelated information; hovering over, muting, pausing
or closing a given piece of content; or an agreement obtained
through the use of deceptive design patterns (also known as
"dark patterns").
(h) "Consumer" means an individual who is a resident of

HB5581 - 3 - LRB103 38323 JRC 68458 b
this State. "Consumer" does not include an individual acting
in a commercial or employment context or as an employee,
owner, director, officer or contractor of a company,
partnership, sole proprietorship, nonprofit or government
agency whose communications or transactions with the
controller occur solely within the context of that
individual's role with the company, partnership, sole
proprietorship, nonprofit or government agency.
(i) "Controller" means an individual who, or legal entity
that, alone or jointly with others determines the purpose and
means of processing personal data.
(j) "COPPA" means the Children's Online Privacy Protection
Act of 1998, 15 U.S.C. 6501 et seq., and any amendments,
regulations, rules, guidance and exemptions adopted under that
act.
(k) "Covered entity" has the same meaning as provided in
HIPAA.
(l) "Dark pattern" or "deceptive design pattern" means a
user interface designed or manipulated with the substantial
effect of subverting or impairing user autonomy,
decision-making or choice, and includes, but is not limited
to, any practice the Federal Trade Commission refers to as a
"dark pattern".
(m) "Decisions that produce legal or similarly significant
effects concerning the consumer" means decisions made by the
controller that result in the provision or denial by the

HB5581 - 4 - LRB103 38323 JRC 68458 b
controller of financial or lending services, housing,
insurance, education enrollment or opportunity, criminal
justice, employment opportunities, health care services or
access to essential goods or services.
(n) "Deidentified data" means data that cannot reasonably
be used to infer information about, or otherwise be linked to,
an identified or identifiable individual, or a device linked
to such individual, if the controller that possesses such data
takes reasonable measures to ensure that such data cannot be
associated with an individual; publicly commits to process
such data only in a deidentified way and not attempt to
reidentify such data; and contractually obligates any
recipients of such data to satisfy the criteria under this
paragraph.
(o) "HIPAA" means the Health Insurance Portability and
Accountability Act of 1996, 42 USC 1320d et seq., as amended.
(p) "Identified or identifiable individual" means an
individual who can be readily identified, directly or
indirectly.
(q) "Institution of higher education" means any individual
who, or school, board, association, limited liability company
or corporation that, is licensed or accredited to offer one or
more programs of higher learning leading to one or more
degrees.
(r) "Nonprofit organization" means any organization that
is exempt from taxation under Section 501(c)(3), 501(c)(4),

HB5581 - 5 - LRB103 38323 JRC 68458 b
501(c)(6), or 501(c)(12) of the Internal Revenue Code of 1986,
or any subsequent corresponding internal revenue code of the
United States, as amended.
(s) "Personal data" means any information that is linked
or reasonably linkable to an identified or identifiable
individual. "Personal data" does not include deidentified data
or publicly available information.
(t) "Precise geolocation data" means information derived
from technology, including, but not limited to, global
positioning system level latitude and longitude coordinates or
other mechanisms, that directly identifies the specific
location of an individual with precision and accuracy within a
radius of 1,750 feet. "Precise geolocation data" does not
include the content of communications or any data generated by
or connected to advanced utility metering infrastructure
systems or equipment for use by a utility.
(u) "Process" or "processing" means any operation or set
of operations performed, whether by manual or automated means,
on personal data or on sets of personal data, such as the
collection, use, storage, disclosure, analysis, deletion or
modification of personal data.
(v) "Processor" means an individual who, or legal entity
that, processes personal data on behalf of a controller.
(w) "Profiling" means any form of automated processing
performed on personal data to evaluate, analyze, or predict
personal aspects related to an identified or identifiable

HB5581 - 6 - LRB103 38323 JRC 68458 b
individual's economic situation, health, personal preferences,
interests, reliability, behavior, location, or movements.
(x) "Protected health information" has the same meaning as
provided in HIPAA.
(y) "Pseudonymous data" means personal data that cannot be
attributed to a specific individual without the use of
additional information, provided such additional information
is kept separately and is subject to appropriate technical and
organizational measures to ensure that the personal data is
not attributed to an identified or identifiable individual.
(z) "Publicly available information" means information
that is lawfully made available through federal, State,
municipal government records, or widely distributed media, and
a controller has a reasonable basis to believe a consumer has
lawfully made available to the general public.
(aa) "Sale of personal data" means the exchange of
personal data for monetary or other valuable consideration by
the controller to a third party. "Sale of personal data" does
not include:
(1) The disclosure of personal data to a processor
that processes the personal data on behalf of the
controller;
(2) The disclosure of personal data to a third party
for purposes of providing a product or service requested
by the consumer;
(3) The disclosure or transfer of personal data to an

HB5581 - 7 - LRB103 38323 JRC 68458 b
affiliate of the controller;
(4) The disclosure of personal data where the consumer
directs the controller to disclose the personal data or
intentionally uses the controller to interact with a third
party;
(5) The disclosure of personal data that the consumer
intentionally made available to the general public via a
channel of mass media, and did not restrict to a specific
audience; or
(6) The disclosure or transfer of personal data to a
third party as an asset that is part of a merger,
acquisition, bankruptcy or other transaction, or a
proposed merger, acquisition, bankruptcy or other
transaction, in which the third party assumes control of
all or part of the controller's assets.
(bb) "Sensitive data" means personal data that includes
data revealing racial or ethnic origin, religious beliefs,
mental or physical health condition or diagnosis, sex life,
sexual orientation or citizenship or immigration status; the
processing of genetic or biometric data for the purpose of
uniquely identifying an individual; personal data collected
from a known child; or precise geolocation data.
(cc) "Targeted advertising" means displaying
advertisements to a consumer where the advertisement is
selected based on personal data obtained or inferred from that
consumer's activities over time and across nonaffiliated

HB5581 - 8 - LRB103 38323 JRC 68458 b
Internet websites or online applications to predict such
consumer's preferences or interests. "Targeted advertising"
does not include:
(1) Advertisements based on activities within a
controller's own Internet websites or online applications;
(2) Advertisements based on the context of a
consumer's current search query, visit to an Internet
website, or online application;
(3) Advertisements directed to a consumer in response
to the consumer's request for information or feedback; or
(4) Processing personal data solely to measure or
report advertising frequency, performance, or reach.
(dd) "Third party" means an individual or legal entity,
such as a public authority, agency or body, other than the
consumer, controller or processor or an affiliate of the
processor or the controller.
Section 10. Application. This Act applies to persons that
conduct business in this State or persons that produce
products or services that are targeted to residents of this
State that during a one-year period:
(a) Controlled or processed the personal data of not
less than 35,000 unique consumers, excluding personal data
controlled or processed solely for the purpose of
completing a payment transaction; or
(b) Controlled or processed the personal data of not

HB5581 - 9 - LRB103 38323 JRC 68458 b
less than 10,000 unique consumers and derived more than 25
percent of their gross revenue from the sale of personal
data.
Section 15. Exclusions.
(a) This Act does not apply to any:
(1) Body, authority, board, bureau, commission,
district or agency of this State or any political
subdivision of this State;
(2) Nonprofit organization;
(3) Institution of higher education;
(4) National securities association that is registered
under 15 U.S.C. 78o-3 of the Security Exchange Act of
1934, as amended;
(5) Financial institution or data subject to Title V
of the Gramm-Leach-Bliley Act, 15 U.S.C. 6801 et seq.; or
(6) A covered entity or business associate, as defined
in 45 CFR 160.103(b).
(b) The following information and data shall be exempt
from this Act:
(1) Protected health information under HIPAA;
(2) Patient-identifying information for purposes of 42
U.S.C. 290dd-2;
(3) Identifiable private information for purposes of
the federal policy for the protection of human subjects
under 45 CFR 46;

HB5581 - 10 - LRB103 38323 JRC 68458 b
(4) Identifiable private information that is otherwise
information collected as part of human subjects research
pursuant to the good clinical practice guidelines issued
by the International Council for Harmonization of
Technical Requirements for Pharmaceuticals for Human Use;
(5) The protection of human subjects under 21 CFR
Parts 6, 50, and 56, or personal data used or shared in
research, as defined in 45 CFR 164.501, that is conducted
in accordance with the standards set forth in this Act, or
other research conducted in accordance with applicable
law;
(6) Information and documents created for purposes of
the Health Care Quality Improvement Act of 1986, 42 U.S.C.
11101 et seq.;
(7) Patient safety work product for purposes of the
Patient Safety and Quality Improvement Act, 42 U.S.C.
299b-21 et seq., as amended;
(8) Information derived from any of the health care
related information listed in this subsection that is
deidentified in accordance with the requirements for
de-identification pursuant to HIPAA;
(9) Information originating from and intermingled to
be indistinguishable with, or information treated in the
same manner as, information exempt under this Section that
is maintained by a covered entity or business associate,
program or qualified service organization, as specified in

HB5581 - 11 - LRB103 38323 JRC 68458 b
42 U.S.C. 290dd-2, as amended;
(10) Information used for public health activities and
purposes as authorized by HIPAA, community health
activities and population health activities;
(11) The collection, maintenance, disclosure, sale,
communication or use of any personal information bearing
on a consumer's credit worthiness, credit standing, credit
capacity, character, general reputation, personal
characteristics or mode of living by a consumer reporting
agency, furnisher or user that provides information for
use in a consumer report, and by a user of a consumer
report, but only to the extent that such activity is
regulated by and authorized under the Fair Credit
Reporting Act, 15 U.S.C. 1681 et seq.;
(12) Personal data collected, processed, sold or
disclosed in compliance with the Driver's Privacy
Protection Act of 1994, 18 U.S.C. 2721 et seq., as
amended;
(13) Personal data regulated by the Family Educational
Rights and Privacy Act, 20 U.S.C. 1232g et seq., as
amended;
(14) Personal data collected, processed, sold or
disclosed in compliance with the Farm Credit Act, 12
U.S.C. 2001 et seq., as amended;
(15) Data processed or maintained in the course of an
individual applying to, employed by or acting as an agent

HB5581 - 12 - LRB103 38323 JRC 68458 b
or independent contractor of a controller, processor or
third party, to the extent that the data is collected and
used within the context of that role; as the emergency
contact information of an individual under this Act used
for emergency contact purposes; or that is necessary to
retain to administer benefits for another individual
relating to the individual who is the subject of the
information under HIPAA and used for the purposes of
administering such benefits;
(16) Personal data collected, processed, sold or
disclosed in relation to price, route or service, as such
terms are used in the Airline Deregulation Act, 49 U.S.C.
40101 et seq., as amended, by an air carrier subject to the
act, to the extent this Act is preempted by the Airline
Deregulation Act, 49 U.S.C. 41713, as amended;
(17) Personal information maintained or used for
purposes of compliance with the regulation of listed
chemicals under the federal Controlled Substances Act, 21
U.S.C. 830; and
(18) Information included in a limited data set as
described at 45 CFR 164.514(e), to the extent that the
information is used, disclosed, and maintained in the
manner specified at 45 CFR 164.514(e).
(c) Controllers and processors that comply with the
verifiable parental consent requirements of COPPA shall be
compliant with any obligation to obtain parental consent

HB5581 - 13 - LRB103 38323 JRC 68458 b
pursuant to this Act.
Section 20. Consumer expectation of privacy.
(a) A consumer has the right to:
(1) Confirm whether or not a controller is processing
the consumer's personal data and access such personal
data, unless such confirmation or access would require the
controller to reveal a trade secret;
(2) Correct inaccuracies in the consumer's personal
data, taking into account the nature of the personal data
and the purposes of the processing of the consumer's
personal data;
(3) Delete personal data provided by, or obtained
about, the consumer;
(4) Obtain a copy of the consumer's personal data
processed by the controller, in a portable and, to the
extent technically feasible, readily usable format that
allows the consumer to transmit the data to another
controller without hindrance, where the processing is
carried out by automated means, provided such controller
shall not be required to reveal any trade secret; and
(5) Opt out of the processing of the personal data for
purposes of targeted advertising, the sale of personal
data, except as provided in Section 30, or profiling in
furtherance of solely automated decisions that produce
legal or similarly significant effects concerning the

HB5581 - 14 - LRB103 38323 JRC 68458 b
consumer.
(b) A consumer may exercise rights under this Section by a
secure and reliable means established by the Secretary of
State and described to the consumer in the controller's
privacy notice. A consumer may designate an authorized agent
in accordance with Section 25 to exercise the rights of such
consumer to opt out of the processing of such consumer's
personal data for purposes of paragraph (5) of subsection (a)
on behalf of the consumer. In the case of processing personal
data of a known child, the parent or legal guardian may
exercise such consumer rights on the child's behalf. In the
case of processing personal data concerning a consumer subject
to a guardianship, conservatorship, or other protective
arrangement, the guardian or the conservator of the consumer
may exercise such rights on the consumer's behalf.
(c) Except as otherwise provided in this Act, a controller
shall comply with a request by a consumer to exercise the
consumer rights authorized pursuant to this Act as follows:
(1) A controller shall respond to the consumer without
undue delay, but not later than 45 days after receipt of
the request. The controller may extend the response period
by 45 additional days when reasonably necessary,
considering the complexity and number of the consumer's
requests, provided the controller informs the consumer of
any such extension within the initial 45-day response
period and of the reason for the extension.

HB5581 - 15 - LRB103 38323 JRC 68458 b
(2) If a controller declines to take action regarding
the consumer's request, the controller shall inform the
consumer without undue delay, but not later than 45 days
after receipt of the request, of the justification for
declining to take action and instructions for how to
appeal the decision.
(3) Information provided in response to a consumer
request shall be provided by a controller, free of charge,
once per consumer during any 12-month period. If requests
from a consumer are manifestly unfounded, excessive or
repetitive, the controller may charge the consumer a
reasonable fee to cover the administrative costs of
complying with the request or decline to act on the
request. The controller bears the burden of demonstrating
the manifestly unfounded, excessive or repetitive nature
of the request.
(4) If a controller is unable to authenticate a
request to exercise any of the rights afforded under
paragraphs (1) through (4) of subsection (a) using
commercially reasonable efforts, the controller shall not
be required to comply with a request to initiate an action
pursuant to this Section and shall provide notice to the
consumer that the controller is unable to authenticate the
request to exercise such right or rights until such
consumer provides additional information reasonably
necessary to authenticate such consumer and such

HB5581 - 16 - LRB103 38323 JRC 68458 b
consumer's request to exercise such right or rights. A
controller shall not be required to authenticate an
opt-out request, but a controller may deny an opt-out
request if the controller has a good faith, reasonable and
documented belief that such request is fraudulent. If a
controller denies an opt-out request because the
controller believes such request is fraudulent, the
controller shall send a notice to the person who made such
request disclosing that such controller believes such
request is fraudulent, why such controller believes such
request is fraudulent and that such controller shall not
comply with such request.
(5) A controller that has obtained personal data about
a consumer from a source other than the consumer shall be
deemed in compliance with a consumer's request to delete
such data pursuant to paragraph (3) of subsection (a) by
retaining a record of the deletion request and the minimum
data necessary for the purpose of ensuring the consumer's
personal data remains deleted from the controller's
records and not using such retained data for any other
purpose pursuant to this Act, or opting the consumer out
of the processing of such personal data for any purpose
except for those exempted pursuant this Act.
(d) A controller shall establish a process for a consumer
to appeal the controller's refusal to take action on a request
within a reasonable period of time after the consumer's

HB5581 - 17 - LRB103 38323 JRC 68458 b
receipt of the decision. The appeal process shall be
conspicuously available and similar to the process for
submitting requests to initiate action pursuant to this
Section. Not later than 60 days after receipt of an appeal, a
controller shall inform the consumer in writing of any action
taken or not taken in response to the appeal, including a
written explanation of the reasons for the decisions. If the
appeal is denied, the controller shall also provide the
consumer with an online mechanism, if available, or other
method through which the consumer may contact the Attorney
General to submit a complaint.
Section 25. Consumer agents. A consumer may designate
another person to serve as the consumer's authorized agent,
and act on such consumer's behalf, to opt out of the processing
of such consumer's personal data for one or more of the
purposes specified in paragraph (5) of subsection (a) of
Section 20. The consumer may designate such authorized agent
by way of, among other things, a technology, including, but
not limited to, an Internet link or a browser setting, browser
extension or global device setting, indicating such consumer's
intent to opt out of such processing. A controller shall
comply with an opt-out request received from an authorized
agent if the controller is able to verify, with commercially
reasonable effort, the identity of the consumer and the
authorized agent's authority to act on such consumer's behalf.

HB5581 - 18 - LRB103 38323 JRC 68458 b
Section 30. Controller responsibilities.
(a) A controller shall:
(1) Limit the collection of personal data to what is
adequate, relevant and reasonably necessary in relation to
the purposes for which such data is processed, as
disclosed to the consumer;
(2) Except as otherwise provided in this Act, not
process personal data for purposes that are neither
reasonably necessary to, nor compatible with, the
disclosed purposes for which such personal data is
processed, as disclosed to the consumer, unless the
controller obtains the consumer's consent;
(3) Establish, implement and maintain reasonable
administrative, technical and physical data security
practices to protect the confidentiality, integrity and
accessibility of personal data appropriate to the volume
and nature of the personal data at issue;
(4) Not process sensitive data concerning a consumer
without obtaining the consumer's consent, or, in the case
of the processing of sensitive data concerning a known
child, without processing such data in accordance with
COPPA;
(5) Not process personal data in violation of the laws
of this State and federal laws that prohibit unlawful
discrimination against consumers;

HB5581 - 19 - LRB103 38323 JRC 68458 b
(6) Provide an effective mechanism for a consumer to
revoke the consumer's consent under this Section that is
at least as easy as the mechanism by which the consumer
provided the consumer's consent and, upon revocation of
such consent, cease to process the data as soon as
practicable, but not later than 15 days after the receipt
of such request; and
(7) Not process the personal data of a consumer for
purposes of targeted advertising, or sell the consumer's
personal data without the consumer's consent, under
circumstances where a controller has actual knowledge, and
willfully disregards, that the consumer is at least 13
years of age but younger than 16 years of age. A controller
shall not discriminate against a consumer for exercising
any of the consumer rights contained in this Act,
including denying goods or services, charging different
prices or rates for goods or services or providing a
different level of quality of goods or services to the
consumer.
(b) Nothing in this Section shall be construed to require
a controller to provide a product or service that requires the
personal data of a consumer which the controller does not
collect or maintain, or prohibit a controller from offering a
different price, rate, level, quality or selection of goods or
services to a consumer, including offering goods or services
for no fee, if the offering is in connection with a consumer's

HB5581 - 20 - LRB103 38323 JRC 68458 b
voluntary participation in a bona fide loyalty, rewards,
premium features, discounts or club card program.
(c) A controller shall provide consumers with a reasonably
accessible, clear and meaningful privacy notice meeting
standards established by the Secretary of State that includes:
(1) The categories of personal data processed by the
controller;
(2) The purpose for processing personal data;
(3) How consumers may exercise their consumer rights,
including how a consumer may appeal a controller's
decision with regard to the consumer's request;
(4) The categories of personal data that the
controller shares with third parties, if any;
(5) The categories of third parties, if any, with
which the controller shares personal data; and
(6) An active electronic mail address or other online
mechanism that the consumer may use to contact the
controller.
(d) If a controller sells personal data to third parties
or processes personal data for targeted advertising, the
controller shall clearly and conspicuously disclose such
processing, as well as the manner in which a consumer may
exercise the right to opt out of such processing.
(e) A controller shall establish, and shall describe in a
privacy notice, consistent with the requirements of the
Secretary of State, one or more secure and reliable means for

HB5581 - 21 - LRB103 38323 JRC 68458 b
consumers to submit a request to exercise their consumer
rights pursuant to this Act. Such means shall take into
account the ways in which consumers normally interact with the
controller, the need for secure and reliable communication of
such requests and the ability of the controller to verify the
identity of the consumer making the request. A controller
shall not require a consumer to create a new account in order
to exercise consumer rights, but may require a consumer to use
an existing account. Any such means shall include:
(1) Providing a clear and conspicuous link on the
controller's Internet website to an Internet web page that
enables a consumer, or an agent of the consumer, to opt out
of the targeted advertising or sale of the consumer's
personal data; and
(2) Not later than January 1, 2025, allowing a
consumer to opt out of any processing of the consumer's
personal data for the purposes of targeted advertising, or
any sale of such personal data, through an opt-out
preference signal sent, with such consumer's consent, by a
platform, technology or mechanism to the controller,
indicating such consumer's intent to opt out of any such
processing or sale. Such platform, technology or mechanism
shall:
(A) Not unfairly disadvantage another controller;
(B) Not make use of a default setting, but,
rather, require the consumer to make an affirmative,

HB5581 - 22 - LRB103 38323 JRC 68458 b
freely given and unambiguous choice to opt out of any
processing of such consumer's personal data pursuant
to this Act;
(C) Be consumer-friendly and easy to use by the
average consumer;
(D) Be as consistent as possible with any other
similar platform, technology or mechanism required by
any federal or State law or regulation; and
(E) Enable the controller to accurately determine
whether the consumer is a resident of this State and
whether the consumer has made a legitimate request to
opt out of any sale of such consumer's personal data or
targeted advertising.
(3) If a consumer's decision to opt out of any
processing of the consumer's personal data for the
purposes of targeted advertising, or any sale of such
personal data, through an opt-out preference signal sent
in accordance with this subsection (e) conflicts with the
consumer's existing controller-specific privacy setting or
voluntary participation in a controller's bona fide
loyalty, rewards, premium features, discounts or club card
program, the controller shall comply with such consumer's
opt-out preference signal but may notify such consumer of
such conflict and provide to such consumer the choice to
confirm such controller-specific privacy setting or
participation in such program.

HB5581 - 23 - LRB103 38323 JRC 68458 b
(e-5) If a controller responds to consumer opt-out
requests received pursuant to subsection (e) by informing the
consumer of a charge for the use of any product or service, the
controller shall present the terms of any financial incentive
offered pursuant to this Section for the retention, use, sale
or sharing of the consumer's personal data.
Section 35. Processor responsibilities.
(a) A processor shall adhere to the instructions of a
controller and shall assist the controller in meeting the
controller's obligations under this Act. Such assistance shall
include:
(1) Taking into account the nature of processing and
the information available to the processor, by appropriate
technical and organizational measures, insofar as is
reasonably practicable, to fulfill the controller's
obligation to respond to consumer rights requests;
(2) Taking into account the nature of processing and
the information available to the processor, by assisting
the controller in meeting the controller's obligations in
relation to the security of processing the personal data
and in relation to the notification of a breach of
security or of the system of the processor, in order to
meet the controller's obligations; and
(3) Providing necessary information to enable the
controller to conduct and document data protection

HB5581 - 24 - LRB103 38323 JRC 68458 b
assessments.
(b) A contract between a controller and a processor shall
govern the processor's data processing procedures with respect
to processing performed on behalf of the controller. The
contract shall be binding and clearly set forth instructions
for processing data, the nature and purpose of processing, the
type of data subject to processing, the duration of processing
and the rights and obligations of both parties. The contract
shall also require that the processor:
(1) Ensure that each person processing personal data
is subject to a duty of confidentiality with respect to
the data;
(2) At the controller's direction, delete or return
all personal data to the controller as requested at the
end of the provision of services, unless retention of the
personal data is required by law;
(3) Upon the reasonable request of the controller,
make available to the controller all information in its
possession necessary to demonstrate the processor's
compliance with the obligations in this Act;
(4) After providing the controller an opportunity to
object, engage any subcontractor pursuant to a written
contract that requires the subcontractor to meet the
obligations of the processor with respect to the personal
data; and
(5) Allow, and cooperate with, reasonable assessments

HB5581 - 25 - LRB103 38323 JRC 68458 b
by the controller or the controller's designated assessor,
or the processor may arrange for a qualified and
independent assessor to conduct an assessment of the
processor's policies and technical and organizational
measures in support of the obligations under this Act,
using an appropriate and accepted control standard or
framework and assessment procedure for such assessments.
The processor shall provide a report of such assessment to
the controller upon request.
(c) Nothing in this Section shall be construed to relieve
a controller or processor from the liabilities imposed on the
controller or processor by virtue of such controller's or
processor's role in the processing relationship, as described
in this Act.
(d) Determining whether a person is acting as a controller
or processor with respect to a specific processing of data is a
fact-based determination that depends upon the context in
which personal data is to be processed. A person who is not
limited in such person's processing of personal data pursuant
to a controller's instructions, or who fails to adhere to such
instructions, is a controller and not a processor with respect
to a specific processing of data. A processor that continues
to adhere to a controller's instructions with respect to a
specific processing of personal data remains a processor. If a
processor begins, alone or jointly with others, determining
the purposes and means of the processing of personal data, the

HB5581 - 26 - LRB103 38323 JRC 68458 b
processor is a controller with respect to such processing and
may be subject to an enforcement action Section 55.
Section 40. Heightened risk of harm.
(a) A controller shall conduct and document a data
protection assessment for each of the controller's processing
activities that presents a heightened risk of harm to a
consumer. For the purposes of this Section, processing that
presents a heightened risk of harm to a consumer includes:
(1) The processing of personal data for the purposes
of targeted advertising;
(2) The sale of personal data;
(3) The processing of personal data for the purposes
of profiling, where such profiling presents a reasonably
foreseeable risk of unfair or deceptive treatment of, or
unlawful disparate impact on, consumers, financial,
physical or reputational injury to consumers, a physical
or other intrusion upon the solitude or seclusion, or the
private affairs or concerns, of consumers, where such
intrusion would be offensive to a reasonable person, or
other substantial injury to consumers; and
(4) The processing of sensitive data.
(b) Data protection assessments conducted pursuant to
subsection (a) shall identify and weigh the benefits that may
flow, directly and indirectly, from the processing to the
controller, the consumer, other stakeholders and the public

HB5581 - 27 - LRB103 38323 JRC 68458 b
against the potential risks to the rights of the consumer
associated with such processing, as mitigated by safeguards
that can be employed by the controller to reduce such risks.
The controller shall factor into any such data protection
assessment the use of deidentified data and the reasonable
expectations of consumers, as well as the context of the
processing and the relationship between the controller and the
consumer whose personal data will be processed.
(c) The Attorney General may require that a controller
disclose any data protection assessment that is relevant to an
investigation conducted by the Attorney General, and the
controller shall make the data protection assessment available
to the Attorney General. The Attorney General may evaluate the
data protection assessment for compliance with the
responsibilities set forth in this Act. Data protection
assessments shall be confidential and shall be exempt from
disclosure under 5 ILCS 120. To the extent any information
contained in a data protection assessment disclosed to the
Attorney General includes information subject to
attorney-client privilege or work product protection, such
disclosure shall not constitute a waiver of such privilege or
protection.
(d) A single data protection assessment may address a
comparable set of processing operations that include similar
activities.
(e) If a controller conducts a data protection assessment

HB5581 - 28 - LRB103 38323 JRC 68458 b
for the purpose of complying with another applicable law or
regulation, the data protection assessment shall be deemed to
satisfy the requirements established in this Section if such
data protection assessment is reasonably similar in scope and
effect to the data protection assessment that would otherwise
be conducted pursuant to this Section.
(f) Data protection assessment requirements shall apply to
processing activities created or generated after July 1, 2024,
and are not retroactive.
Section 45. Deidentified data.
(a) Any controller in possession of deidentified data
shall:
(1) Take reasonable measures to ensure that the data
cannot be associated with an individual;
(2) Publicly commit to maintaining and using
deidentified data without attempting to reidentify the
data; and
(3) Contractually obligate any recipients of the
deidentified data to comply with all provisions of this
Act.
(b) Nothing in this Act shall be construed to:
(1) Require a controller or processor to reidentify
deidentified data or pseudonymous data; or
(2) Maintain data in identifiable form, or collect,
obtain, retain, or access any data or technology, in order

HB5581 - 29 - LRB103 38323 JRC 68458 b
to be capable of associating an authenticated consumer
request with personal data.
(c) Nothing in this Act shall be construed to require a
controller or processor to comply with an authenticated
consumer rights request if the controller:
(1) Is not reasonably capable of associating the
request with the personal data or it would be unreasonably
burdensome for the controller to associate the request
with the personal data;
(2) Does not use the personal data to recognize or
respond to the specific consumer who is the subject of the
personal data, or associate the personal data with other
personal data about the same specific consumer; and
(3) Does not sell the personal data to any third party
or otherwise voluntarily disclose the personal data to any
third party other than a processor, except as otherwise
permitted in this Section.
(d) The rights afforded under paragraphs (1) through (4)
of subsection (a) of Section 20 shall not apply to
pseudonymized data in cases where the controller is able to
demonstrate that any information necessary to identify the
consumer is kept separately and is subject to effective
technical and organizational controls that prevent the
controller from accessing such information.
(e) A controller that discloses pseudonymous data or
deidentified data shall exercise reasonable oversight to

HB5581 - 30 - LRB103 38323 JRC 68458 b
monitor compliance with any contractual commitments to which
the pseudonymous data or deidentified data is subject and
shall take appropriate steps to address any breaches of those
contractual commitments.
Section 50. Controller responsibilities and obligations.
(a) Nothing in this Act shall be construed to restrict a
controller's or processor's ability to:
(1) Comply with federal, State or municipal ordinances
or regulations;
(2) Comply with a civil, criminal or regulatory
inquiry, investigation, subpoena or summons by federal,
State, municipal or other governmental authorities;
(3) Cooperate with law enforcement agencies concerning
conduct or activity that the controller or processor
reasonably and in good faith believes may violate federal,
State or municipal ordinances or regulations;
(4) Investigate, establish, exercise, prepare for or
defend legal claims;
(5) Provide a product or service specifically
requested by a consumer;
(6) Perform under a contract to which a consumer is a
party, including fulfilling the terms of a written
warranty;
(7) Take steps at the request of a consumer prior to
entering into a contract;

HB5581 - 31 - LRB103 38323 JRC 68458 b
(8) Take immediate steps to protect an interest that
is essential for the life or physical safety of the
consumer or another individual, and where the processing
cannot be manifestly based on another legal basis;
(9) Prevent, detect, protect against or respond to
security incidents, identity theft, fraud, harassment,
malicious or deceptive activities or any illegal activity,
preserve the integrity or security of systems or
investigate, report or prosecute those responsible for any
such action;
(10) Engage in public or peer-reviewed scientific or
statistical research in the public interest that adheres
to all other applicable ethics and privacy laws and is
approved, monitored and governed by an institutional
review board that determines, or similar independent
oversight entities that determine:
(A) Whether the deletion of the information is
likely to provide substantial benefits that do not
exclusively accrue to the controller,
(B) The expected benefits of the research outweigh
the privacy risks, and
(C) Whether the controller has implemented
reasonable safeguards to mitigate privacy risks
associated with research, including any risks
associated with reidentification;
(11) Assist another controller, processor, or third

HB5581 - 32 - LRB103 38323 JRC 68458 b
party with any of the obligations under this Act; or
(12) Process personal data for reasons of public
interest in the area of public health, community health or
population health, but solely to the extent that such
processing is:
(A) Subject to suitable and specific measures to
safeguard the rights of the consumer whose personal
data is being processed, and
(B) Under the responsibility of a professional
subject to confidentiality obligations under federal,
State or local law.
(b) The obligations imposed on controllers or processors
under this Act shall not restrict a controller's or
processor's ability to collect, use or retain data for
internal use to:
(1) Conduct internal research to develop, improve or
repair products, services or technology;
(2) Effectuate a product recall;
(3) Identify and repair technical errors that impair
existing or intended functionality; or
(4) Perform internal operations that are reasonably
aligned with the expectations of the consumer or
reasonably anticipated based on the consumer's existing
relationship with the controller, or are otherwise
compatible with processing data in furtherance of the
provision of a product or service specifically requested

HB5581 - 33 - LRB103 38323 JRC 68458 b
by a consumer or the performance of a contract to which the
consumer is a party.
(c) The obligations imposed on controllers or processors
under this Act shall not apply where compliance by the
controller or processor with said Sections would violate an
evidentiary privilege under the laws of this State. Nothing in
this Act shall be construed to prevent a controller or
processor from providing personal data concerning a consumer
to a person covered by an evidentiary privilege under the laws
of the State as part of a privileged communication.
(d) A controller or processor that discloses personal data
to a processor or third-party controller in accordance with
this Act shall not be deemed to have violated said Sections if
the processor or third-party controller that receives and
processes such personal data violates said Sections, provided,
at the time the disclosing controller or processor disclosed
such personal data, the disclosing controller or processor did
not have actual knowledge that the receiving processor or
third-party controller would violate said Sections. A
third-party controller or processor receiving personal data
from a controller or processor in compliance with this Act is
likewise not in violation of said Sections for the
transgressions of the controller or processor from which such
third-party controller or processor receives such personal
data.
(e) Nothing in this Act shall be construed to:

HB5581 - 34 - LRB103 38323 JRC 68458 b
(1) Impose any obligation on a controller or processor
that adversely affects the rights or freedoms of any
person, including, but not limited to, the rights of any
person to freedom of speech or freedom of the press
guaranteed in the First Amendment to the United States
Constitution; or
(2) Apply to any person's processing of personal data
in the course of such person's purely personal or
household activities.
(f) Personal data processed by a controller pursuant to
this Section may be processed to the extent that such
processing is:
(1) Reasonably necessary and proportionate to the
purposes listed in this Section; and
(2) Adequate, relevant and limited to what is
necessary in relation to the specific purposes listed in
this Section. Personal data collected, used or retained
under paragraph (2) of subsection (a), where applicable,
take into account the nature and purpose or purposes of
such collection, use or retention. Such data shall be
subject to reasonable administrative, technical and
physical measures to protect the confidentiality,
integrity and accessibility of the personal data and to
reduce reasonably foreseeable risks of harm to consumers
relating to such collection, use or retention of personal
data.

HB5581 - 35 - LRB103 38323 JRC 68458 b
(g) If a controller processes personal data pursuant to an
exemption in this Section, the controller bears the burden of
demonstrating that such processing qualifies for the exemption
and complies with the requirements in subsection (f).
(h) Processing personal data for the purposes expressly
identified in this Section shall not solely make a legal
entity a controller with respect to such processing.
Section 55. Notice; enforcement.
(a) The Attorney General shall have exclusive authority to
enforce violations under this Act.
(b) During the period beginning January 1, 2025 and ending
December 31, 2025, the Attorney General shall, and following
said period the Attorney General may, prior to initiating any
action for a violation under this Act, issue a notice of
violation to the controller if the Attorney General determines
that a cure is possible. If the controller fails to cure such
violation within 60 days of receipt of the notice of
violation, the Attorney General may bring an action pursuant
to this Section.
(c) Beginning January 1, 2026, in determining whether to
grant a controller or processor the opportunity to cure an
alleged violation described under this Act, the Attorney
General may consider:
(1) The number of violations;
(2) The size and complexity of the controller or

HB5581 - 36 - LRB103 38323 JRC 68458 b
processor;
(3) The nature and extent of the controller's or
processor's processing activities;
(4) The substantial likelihood of injury to the
public;
(5) The safety of persons or property; and
(6) Whether such alleged violation was likely caused
by human or technical error.
(d) Nothing in this Act shall be construed as providing
the basis for, or be subject to, a private right of action for
violations under this Act or any other law.
(e) A violation under this Act shall constitute an unfair
method of competition or any unfair or deceptive act or
practice in the conduct of any trade or commerce within this
State under the Consumer Fraud and Deceptive Business
Practices Act and shall be enforced by the Attorney General.
Section 60. Compliance with other law. An individual or
entity covered by this Act and other law regarding third-party
providers of information and services is required to comply
with both laws, provided, however, that to the extent there is
a direct conflict between the 2 laws which precludes
compliance with both statutes, the individual or entity shall
comply with the statute that provides the greater measure of
privacy protection to individuals. For purposes of this
Section, an "opt-in" procedure for an individual to grant

HB5581 - 37 - LRB103 38323 JRC 68458 b
consent for the disclosure of personal information shall be
deemed to provide a greater measure of protection of privacy
than the "opt-out" procedure established under this Act.