As data privacy laws continue to grow in complexity, Tennessee businesses must navigate new requirements to protect consumer information. The Tennessee Information Protection Act (TIPA), effective July 1, 2025, introduces specific mandates to enhance privacy protections for consumers while outlining compliance standards for businesses. In this blog, we’ll explore TIPA’s key provisions, which businesses it impacts, and how you can prepare to meet its requirements.

What Is the Tennessee Information Protection Act (TIPA)?

TIPA is Tennessee’s answer to the growing demand for stricter consumer data protection laws. The act establishes guidelines for businesses handling consumer information, giving individuals more control over how their data is collected, stored, and used. Modeled after privacy laws like the California Consumer Privacy Act (CCPA) and Virginia Consumer Data Protection Act (VCDPA), TIPA aims to balance consumer rights with the practicalities of business operations.

Does TIPA Apply to Your Business?

You are subject to compliance if your organization exceeds $25 million in annual revenue, conducts business in the state or provides products or services that are targeted to residents of the state, and meets one or more of the following:

1. During a calendar year, controls or processes personal information of at least 175,000 consumers.
2. Controls or processes personal information of at least 25,000 consumers and derives more than 50 percent of gross revenue from the sale of personal information.

Exemptions:
TIPA exempts certain entities, including government organizations, financial institutions under the Gramm-Leach-Bliley Act, and healthcare entities covered by HIPAA. Businesses not meeting the thresholds are also exempt but should still consider the importance of data protection for consumer trust.red by HIPAA. Businesses not meeting the thresholds are also exempt but should still consider the importance of data protection for consumer trust.

Key Provisions of TIPA

Consumer Rights

TIPA empowers consumers with the following rights:

• Access: Request a copy of personal data being processed.
• Correction: Amend inaccuracies in their data.
• Deletion: Request the removal of their personal data.
• Portability: Obtain a copy of their data in a usable format.
• Opt-Out: Deny the sale of personal data or targeted advertising.

Business Obligations

To comply with TIPA, businesses must:

• Implement transparent privacy notices detailing data collection practices.
• Enable opt-out mechanisms for data sales or targeted advertising.
• Conduct data protection assessments for high-risk processing activities.
• Securely process and store consumer data to minimize risks.

Enforcement and Penalties

The Tennessee Attorney General oversees TIPA enforcement. Businesses failing to comply may face civil penalties of up to $7,500 per violation. A 60-day cure period allows businesses to address violations before penalties are applied, but this may be removed for repeat offenders.

How to Prepare Your Business for TIPA Compliance

Conduct a Data Audit

• Identify what consumer data you collect, how it’s used, and where it’s stored.
• Determine whether you meet TIPA’s applicability thresholds.

Update Your Privacy Policies

• Ensure policies clearly outline data collection, usage, and consumer rights.
• Add opt-out options for targeted advertising and data sales.

Implement Data Protection Measures

• Secure consumer data through encryption, access controls, and regular security audits.
• Train employees on handling consumer data responsibly.

Plan for Consumer Requests

• Establish procedures for responding to access, correction, deletion, and portability requests.
• Test your systems to ensure compliance with these timelines.

Perform Data Protection Assessments

• Evaluate high-risk data processing activities to identify potential privacy risks.

Why TIPA Matters for Businesses

TIPA reflects a growing trend toward stronger data privacy protections nationwide. For Tennessee-based businesses or those who conduct business with residents, compliance isn’t just about avoiding penalties; it’s about building trust with consumers. Transparency in data practices can set your business apart in a competitive market, enhancing your reputation and fostering customer loyalty.

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal advice. For specific legal guidance regarding the Tennessee Information Protection Act (TIPA) or other compliance matters, please consult with a qualified attorney.