Partner; Chair – Global Data Privacy and Security Practice; and Global Practice Group Leader – Technology, Commercial & Data, Boulder
Insights
Time to Comply: Washington My Health My Data ActOn April 27, 2023, the Washington State governor signed into law the My Health My Data Act or the MHMDA. In spite of the onerous and at times confusing requirements of the MHMDA, the Washington Attorney General (AG) has only published a short set of Frequently Asked Questions to help address some of this uncertainty. Nevertheless, most of the law’s provisions take effect on March 31, 2024, meaning that, at this point, companies have a very short runway to meet their obligations and brace for the private right of action allowed for under the act.
With this in mind, we have prepared this brief recap of the law and the steps companies should consider as they gear up for compliance. Our more detailed summary of the MHMDA is available in our original insight, and we will also be releasing a series of short FAQs over the coming weeks to help companies prepare.
The MHMDA requires that companies comply with its obligations and prohibitions starting on March 31, 2024. However, small businesses are granted an extension until the end of June 2024.
Unlike other current or pending State privacy laws, the application of which are often narrowed by a revenue or data subject threshold, the MHMDA applies to any legal entity that conducts business in the state of Washington or produces or provides products or services targeted to consumers in Washington and alone or jointly with others, determines the purpose and means of collecting, processing, sharing, or selling consumer health data.[1]The FAQs have clarified, however, that the MHMDA will not apply to entities that only store data in Washington.
Although the MHMDA purports to protect only “consumer health data,” rather than all consumer data, the MHMDA's broad definitions in this regard will sweep in significantly more data than the term would suggest. “Consumer health data” is defined as “personal information that is linked or reasonably linkable to a consumer and identifies the consumer's past, present, or future physical or mental health status.”[2] Generally, the following information may trigger the obligations of the MHMDA:
The AG clarified that simply collecting information on the purchase of toiletries does not fall within the MHMDA’s definition of consumer health data. However, an inference drawn from those purchases could be considered “consumer health data.” Therefore, companies will need to understand how consumer purchase information is used, particularly when such information could fall under the broad definition of consumer health data.
Privacy Notices: The MHMDA obligates regulated entities to maintain a “consumer health data privacy policy” that meets the related detailed content requirements.[3] Under the most recent FAQs, the Washington AG clarified that the link to the MHMDA Consumer Health Privacy Policy must be a separate and distinct link on the regulated entity’s homepage and may not contain additional information not required under the MHMDA. This new guidance is still unclear as to whether the MHMDA requires a separate privacy policy for the collection and use of consumer health data or whether the notice itself can be embedded in an organization’s broader privacy policy. Until further clarification is provided, preparing a separate policy or a separate MHMDA section in the existing policy that contains all mandatory content (as opposed to cross-referencing relevant provisions in the general privacy policy) would likely be the safest approach.
The MHMDA also requires:
The MHMDA allows the Washington Attorney General to enforce violations through the State’s Consumer Protection Act. The AG’s office can impose a civil penalty of up to $7,500 per violation. In addition, and more importantly from a practical impact, the MHMDA provides consumers a private right of action to seek damages for violations of the law, creating the real and immediate risk of a costly class action lawsuit.[8]
Given the private right of action and the complex obligations of the MHMDA, it is critical for companies to begin compliance efforts as soon as possible. As a starting point, companies should work to:
We will be digging into the MHMDA’s obligations in the weeks to come to help companies work through these next steps in more detail.
[1] Section 3(23).
[2] Section 3(8)(a).
[3] Section 4.
[4] Section 5.
[5] Section 9.
[6] Section 10.
[7] Section 6.
[8] Section 11.
Partner; Chair – Global Data Privacy and Security Practice; and Global Practice Group Leader – Technology, Commercial & Data, Boulder
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