Understanding the Maryland Online Data Privacy Act (MODPA)

Data privacy regulations are evolving faster than ever. Businesses that collect and process consumer data are under growing pressure to comply with complex and overlapping laws at both the state and federal levels. The Maryland Online Data Privacy Act of 2024 (MODPA) is the latest in a series of state-driven regulations designed to safeguard consumer rights and ensure businesses handle personal data responsibly.

The solution might lie in a powerful ally: Artificial Intelligence (AI). AI can help businesses manage data privacy laws more efficiently and precisely, turning compliance from a challenge into a competitive advantage.  

The 2023 IBM Cost of a Data Breach Report reveals the average breach cost reached a record USD 4.45 million, with AI and automation helping reduce costs by accelerating breach detection. 

But staying compliant isn’t simple. Each state law introduces unique requirements, making it challenging for businesses operating across multiple jurisdictions. MODPA introduces stringent consumer consent requirements, privacy impact assessments, and AI-driven data governance, further adding to the complexity.

A Real-World Challenge: The Compliance Dilemma

Let’s put this into perspective: Imagine you’re a mid-sized SaaS company operating across multiple states. Your platform collects customer behavior data to personalize user experiences. Under California’s CCPA, consumers can opt out of data sales, while Virginia’s VCDPA mandates a clear consent process. Now, with MODPA in the mix, you must also ensure explicit consent before collecting any data—even for basic analytics.

Failing to adapt could mean violations, lawsuits, and regulatory fines up to $50,000 per offense. So, how do you ensure compliance without overwhelming your team with manual oversight?

The answer lies in Artificial Intelligence (AI)-driven privacy management. AI-powered compliance solutions can automate data classification, track consumer consent, and streamline compliance monitoring, turning regulatory complexity into a competitive advantage.

What You’ll Learn in This Blog

In this blog, we’ll break down everything you need to know about MODPA, including:

• How MODPA compares to CCPA, VCDPA, and GDPR.
• The key obligations businesses must follow to stay compliant.
• How AI-powered tools can simplify compliance efforts.
• Best practices for integrating MODPA compliance into your data governance strategy.

By the end of this guide, you’ll have a clear roadmap for navigating MODPA compliance efficiently while future-proofing your business against evolving data privacy laws.

What is MODPA?

The Maryland Online Data Privacy Act of 2024 (MODPA) is a comprehensive state law that establishes strong consumer data protections and imposes strict compliance obligations on businesses handling personal data.

Enacted to take effect on October 1, 2025, MODPA is part of a growing trend of state-specific privacy regulations aimed at empowering consumers and holding businesses accountable for how they collect, process, and share personal information.

Who Does MODPA Apply To?

MODPA applies to businesses that meet either of the following criteria:

• Control or process the personal data of at least 35,000 consumers annually, excluding data used solely for payment transactions.
• Control or process the personal data of at least 10,000 consumers while deriving at least 20% of gross revenue from selling personal data.

This means even mid-sized companies that rely on consumer data for targeted marketing, analytics, or AI-driven decision-making will need to implement significant changes in their data governance strategies to stay compliant.

Why Does MODPA Matter for Businesses?

Failure to comply with MODPA can result in severe financial penalties, consumer lawsuits, and reputational damage. The law establishes clear guidelines on consumer rights, data security, and AI transparency, setting a new compliance benchmark for businesses operating in Maryland.

Key Provisions of MODPA

As consumers demand greater control over their personal data, MODPA introduces several new legal provisions that businesses must comply with. Unlike older privacy laws that primarily focused on data security, MODPA goes further by regulating how businesses collect, process, and share data.

A significant aspect of MODPA is its emphasis on explicit consumer consent and privacy impact assessments (PIAs). These measures ensure that businesses transparently handle personal information, particularly when using AI-driven data processing. Furthermore, the law establishes clear penalties for non-compliance, encouraging businesses to adopt robust privacy management strategies.

Businesses operating in Maryland or handling Maryland residents’ data must take proactive steps to implement secure, compliant data processing systems in line with MODPA’s requirements.

Consumer Rights Under MODPA

One of the most significant aspects of MODPA is its comprehensive consumer rights framework, ensuring Maryland residents have greater control over their personal data. The law grants consumers the right to:

• Access & Data Portability – Consumers can request copies of their personal data and transfer it to another provider.
• Correction of Data – Individuals can request corrections to inaccurate or outdated data held by businesses.
• Deletion of Personal Data – Businesses must delete consumer data upon request, unless retention is legally required.
• Opt-Out Rights – Consumers can opt out of:
  • Data sales
  • Targeted advertising
  • AI-driven profiling that affects them legally or financially.

For example, a job applicant who is denied employment based on an AI-driven decision can now demand greater transparency and challenge the outcome. This provision sets MODPA apart by directly addressing AI fairness and bias.

Privacy Impact Assessments (PIAs)

MODPA introduces a new compliance requirement: businesses must conduct Privacy Impact Assessments (PIAs) for any data processing activities that pose a high risk to consumer privacy. These assessments help businesses:

• Evaluate how AI algorithms process consumer data.
• Identify potential risks of bias, discrimination, or misuse.
• Ensure data protection measures align with MODPA's requirements.

For instance, if an AI-driven lending platform uses consumer data for automated credit scoring, MODPA mandates a PIA to ensure fairness and compliance with privacy standards.

Consumer Health Data Protection

MODPA classifies consumer health data as sensitive information, adding an extra layer of protection. This includes:

• Reproductive health data
• Gender-affirming care records
• Mental health information

Businesses must obtain explicit consumer consent before processing such data, preventing unauthorized collection, sharing, or selling of personal health information.

Business Obligations Under MODPA

MODPA imposes strict compliance requirements on businesses that process personal data, especially those engaging in AI-driven decision-making, targeted advertising, or data monetization. Unlike other privacy laws that primarily emphasize consumer rights, MODPA equally prioritizes business accountability, ensuring that companies follow ethical data practices.

Businesses must implement privacy safeguards, conduct regular compliance assessments, and ensure all data handling processes are aligned with MODPA’s requirements. The introduction of mandatory Privacy Impact Assessments (PIAs) also means that businesses using AI or automated decision-making tools must assess potential privacy risks and document compliance efforts.

Non-compliance can lead to severe financial penalties, lawsuits, and reputational damage. Therefore, organizations must take a proactive approach to compliance, integrating AI-powered solutions to streamline privacy management and regulatory adherence.

Controller & Processor Responsibilities

MODPA places strict responsibilities on businesses that collect and process consumer data. Key requirements include:

• Consumer Consent – Explicit consent must be obtained before collecting personal data.
• Non-Discrimination – Businesses cannot deny services or charge higher fees to consumers who exercise their privacy rights.
• Data Retention & Security – Companies must implement robust security measures to prevent unauthorized access, breaches, or misuse of personal data.

For example, an e-commerce platform using customer data for personalized recommendations must now obtain clear consent and provide an opt-out option for targeted advertising.

Data Breach Notification Requirements

MODPA mandates that businesses must notify consumers within 30 days of a data breach. This is stricter than CCPA, which allows 45 days. Businesses that fail to comply face financial penalties and potential legal action from affected consumers.

Penalties for Non-Compliance

Unlike other state privacy laws, MODPA allows for:

• State enforcement by the Attorney General.
• Private lawsuits from affected consumers.

Fines can reach up to $50,000 per violation, meaning even a minor compliance failure can result in significant financial losses.

The Growing Complexity of Data Privacy Laws 

As state-specific privacy laws proliferate, businesses increasingly face a patchwork of compliance requirements. Each state has unique privacy regulations that overlap but are seldom identical. For example, Maryland’s MODPA introduces fresh provisions around consumer rights and AI-driven data management. 

At the same time, businesses must still comply with nationally recognized laws, such as the California Consumer Privacy Act (CCPA), which is considered one of the most robust privacy regulations in the U.S.  

Meanwhile, Virginia's VCDPA aligns more closely with the European General Data Protection Regulation (GDPR) but introduces its distinctions. For businesses with operations in multiple states, it’s easy to see how these differences can become overwhelming. 

If your business operates across multiple jurisdictions, failing to comply with any of these laws can result in hefty fines, legal action, and irreparable damage to your brand reputation. Yet staying compliant with each state’s specific requirements is a significant burden for many companies. 

As of 2024, only 10% of U.S. states have comprehensive data privacy laws, though 13 states (26%) have enacted such regulations, including CCPA and VCDPA. This fragmented approach highlights the global trend toward stricter, harmonized data protection standards.

MODPA vs. Other State Privacy Laws

As more states introduce privacy laws, businesses must navigate a complex patchwork of regulations that vary in scope, enforcement, and compliance requirements. The Maryland Online Data Privacy Act (MODPA) stands out as one of the most comprehensive and stringent data privacy laws in the U.S., introducing tighter consumer protections, stricter AI regulations, and mandatory privacy impact assessments.

While similar in intent to laws like the California Consumer Privacy Act (CCPA) and Virginia Consumer Data Protection Act (VCDPA), MODPA raises the bar for data transparency, consent requirements, and AI governance. Understanding how MODPA compares to these laws is crucial for businesses operating in multiple states to ensure seamless compliance.

How MODPA Differs from CCPA and VCDPA

MODPA introduces several key distinctions that set it apart from other state privacy laws. Unlike CCPA, which allows businesses to collect consumer data by default and only requires opt-out mechanisms for certain activities, MODPA requires explicit consumer consent before any data is collected or processed. This means businesses cannot assume consent based on user inactivity or pre-checked consent boxes.

Another major difference is MODPA’s strict AI governance requirements. Companies using AI or automated decision-making tools must disclose how AI impacts consumer privacy and provide opt-out mechanisms for AI-driven profiling. In contrast, CCPA has limited regulations on AI transparency, and VCDPA only partially addresses automated decision-making.

MODPA also mandates Privacy Impact Assessments (PIAs) for businesses engaging in high-risk data processing activities, such as targeted advertising, automated credit scoring, and biometric data collection. While VCDPA requires assessments for some AI-related processes, CCPA does not explicitly require businesses to conduct such evaluations.

One of the strictest enforcement mechanisms in MODPA is its private right of action, allowing consumers to file lawsuits directly against companies for violations. While CCPA grants similar rights for data breaches, it does not extend this to broader privacy violations. VCDPA does not allow consumers to sue businesses, relying instead on enforcement by the Virginia Attorney General.

MODPA’s Approach to Data Breach Notifications

MODPA requires businesses to notify consumers within 30 days of a data breach, ensuring that individuals are informed quickly when their personal data is compromised. In comparison, CCPA allows up to 45 days, providing businesses with a longer timeframe to respond. VCDPA, like MODPA, also mandates a 30-day notification period.

This shorter notification window places greater urgency on businesses to detect, report, and mitigate security incidents quickly, reinforcing the importance of real-time breach detection systems and AI-driven security monitoring tools.

How MODPA Aligns with Global Privacy Regulations

Beyond state laws, MODPA aligns closely with the European Union’s General Data Protection Regulation (GDPR), one of the world’s most stringent privacy frameworks. Both MODPA and GDPR require explicit consumer consent, data portability rights, and comprehensive privacy impact assessments for businesses handling large-scale personal data processing.

However, MODPA differs in its enforcement and penalty structures. GDPR imposes significantly higher fines, reaching up to 4% of a company’s global revenue, whereas MODPA sets penalties at $50,000 per violation. While still substantial, this fine structure is less severe than GDPR’s, making MODPA a strict but manageable compliance challenge for U.S. businesses.

Another shared principle between MODPA and GDPR is consumer data rights, including the ability to access, correct, and delete personal data. Unlike some state laws that allow businesses to delay or deny deletion requests based on operational feasibility, MODPA enforces strict timelines for fulfilling consumer data requests.

Why Businesses Must Take MODPA Compliance Seriously

With more states enacting privacy regulations, businesses cannot afford to take a fragmented approach to compliance. MODPA’s stricter consent policies, AI governance rules, and enforcement mechanisms make it one of the most business-impacting privacy laws in the U.S. Companies that fail to prepare for MODPA could face legal consequences, regulatory penalties, and reputational damage.

To stay ahead of these changes, businesses should take proactive measures such as:

• Developing a comprehensive compliance strategy that aligns with MODPA, CCPA, and GDPR requirements.
• Implementing AI-driven compliance tools to handle data subject requests, consent tracking, and risk assessments.
• Ensuring full transparency in AI decision-making processes, particularly when automated profiling or predictive analytics are involved.

By adopting AI-powered compliance solutions and privacy-first business practices, companies can not only meet MODPA’s legal requirements but also build consumer trust and strengthen their brand reputation in an increasingly privacy-conscious market.

Best Practices for MODPA Compliance

Compliance with the Maryland Online Data Privacy Act (MODPA) requires businesses to take a proactive approach to data privacy, AI governance, and consumer protection. Given the law’s strict requirements for explicit consumer consent, privacy impact assessments (PIAs), and AI transparency, companies must integrate technology-driven solutions to streamline compliance efforts while minimizing operational disruptions.

VIDIZMO Redactor provides AI-powered automation to help businesses protect sensitive consumer data, enforce privacy policies, and maintain regulatory compliance. Below are the five best practices businesses should adopt to ensure seamless MODPA compliance while reducing risks.

1. Conduct Regular Privacy Impact Assessments (PIAs)

Under MODPA, businesses must conduct Privacy Impact Assessments (PIAs) to evaluate the potential risks associated with data collection, AI-driven decision-making, and automated profiling. These assessments ensure that organizations are aware of how they process personal data and whether they are compliant with MODPA’s consumer rights and data protection guidelines.

Why PIAs Are Essential for MODPA Compliance

• Identify and assess risks associated with collecting, storing, or processing consumer data.
• Ensure AI algorithms used in automated decision-making are transparent and unbiased.
• Document compliance measures to demonstrate accountability in case of audits or legal inquiries.

How VIDIZMO Redactor Helps with PIAs

VIDIZMO Redactor streamlines PIAs for MODPA compliance by:

• Automatically detecting and redacting personally identifiable information (PII) in stored video recordings, documents, and images.
• Analyzing AI-driven data processing activities to flag potential privacy risks.
• Generating compliance reports that help organizations assess and document privacy risks efficiently.

For example, if a company records customer service interactions, VIDIZMO Redactor can redact customer names, phone numbers, and payment details before storing or sharing the recordings, ensuring compliance with MODPA and other privacy regulations.

2. Implement AI-Driven Consent Management

MODPA mandates explicit consumer consent before businesses can collect or process personal data. Unlike opt-out models in other privacy laws, MODPA requires consumers to actively agree before their data can be used. Businesses must also track, manage, and store consent records to demonstrate compliance.

Why AI-Driven Consent Management Is Critical

• Reduces manual effort in tracking consumer opt-ins and opt-outs.
• Ensures real-time updates when consumers withdraw consent.
• Prevents unauthorized data processing, reducing the risk of fines and legal penalties.

How VIDIZMO Redactor Ensures Consent Compliance

VIDIZMO Redactor enables businesses to automate consumer consent management by:

• Redacting consumer data in stored media when consent is revoked.
• Tracking and managing consent records to ensure compliance with MODPA’s strict guidelines.
• Automatically applying redaction policies when a consumer exercises their right to opt out.

For instance, if a consumer withdraws consent for their data to be stored, VIDIZMO Redactor can automatically locate and remove their information from video recordings and documents.

3. Automate Data Subject Rights Management

MODPA grants consumers broad rights over their personal data, including the ability to access, correct, delete, and restrict how their information is used. Businesses must respond to these requests within a defined timeframe, ensuring that they are processed quickly and efficiently.

Key Challenges in Managing Data Subject Requests

• Manually handling consumer requests is time-consuming and error-prone.
• Businesses must track multiple requests across different platforms and ensure timely responses.
• Non-compliance with response deadlines can lead to regulatory fines and legal action.

How VIDIZMO Redactor Automates Data Subject Requests

VIDIZMO Redactor enables businesses to:

• Automate the detection and removal of consumer data across video, audio, and document-based records.
• Quickly process deletion or correction requests by redacting personal data upon request.
• Ensure compliance with MODPA’s strict response timelines by streamlining data access, correction, and deletion workflows.

For example, if a customer requests their name and financial details be removed from a company’s customer service recordings, VIDIZMO Redactor can automatically detect and redact their information within the mandated timeframe, ensuring compliance.

4. Train Teams on MODPA & Privacy Laws

Data privacy compliance is not just a technology issue—it also requires awareness and understanding across all departments handling consumer data. Training employees on MODPA compliance requirements ensures that business processes align with privacy laws and that staff members understand their responsibilities in handling sensitive consumer data.

Why Training Is Essential for MODPA Compliance

• Ensures legal, compliance, and IT teams understand MODPA’s key requirements.
• Reduces the risk of unintentional non-compliance due to lack of awareness.
• Helps organizations enforce internal policies for data privacy and security.

How VIDIZMO Redactor Supports Compliance Training

VIDIZMO Redactor facilitates training and awareness programs by:

• Providing AI-powered tools to demonstrate real-world privacy violations and redaction solutions.
• Offering compliance dashboards that show data protection trends and risk areas.
• Allowing organizations to test MODPA redaction policies in real-time on stored media.

For example, companies can use VIDIZMO Redactor to train employees on identifying PII in digital content and ensure correct redaction techniques are followed.

5. Use AI-Powered Data Redaction & Security Tools

One of the most effective ways to achieve MODPA compliance is by automating the redaction of personally identifiable information (PII) and other sensitive data in stored and shared media. AI-powered redaction tools can help organizations protect consumer privacy, prevent unauthorized data exposure, and respond quickly to security threats.

Why AI-Powered Redaction Is a Must for MODPA Compliance

• Reduces the risk of accidental data leaks by automatically masking PII.
• Protects sensitive health and financial data from unauthorized access.
• Ensures businesses comply with MODPA’s breach notification and consent requirements.

How VIDIZMO Redactor Enhances Data Privacy and Security

VIDIZMO Redactor provides:

• Automated redaction of personal data in video, audio, and document files to prevent non-compliance.
• AI-powered detection of sensitive information to ensure that only authorized data is stored and shared.
• Integration with compliance workflows to track and document all redaction activities for audits.

For example, an organization processing video surveillance footage containing consumer data can use VIDIZMO Redactor to blur faces, remove license plates, and redact speech transcripts before sharing or storing the footage. This ensures compliance with MODPA, GDPR, and other privacy regulations.

Implementing Best Practices with VIDIZMO Redactor

Ensuring MODPA compliance requires a combination of AI-driven automation, well-defined policies, and employee training. VIDIZMO Redactor helps businesses achieve compliance by automating privacy impact assessments, securing consumer data, and preventing regulatory violations through AI-powered redaction.

By adopting these best practices, businesses can:

• Maintain full compliance with MODPA’s strict data privacy requirements.
• Prevent legal and financial risks associated with non-compliance.
• Protect consumer trust by ensuring transparency in AI-driven decision-making.

With VIDIZMO Redactor, organizations can streamline data privacy management, minimize compliance risks, and future-proof their operations against evolving privacy regulations.

The Role of AI in MODPA Compliance

As MODPA introduces stricter compliance requirements, businesses handling consumer data must adopt AI-driven privacy solutions to ensure seamless compliance. One of the biggest challenges under MODPA is managing sensitive consumer data, ensuring transparency in AI-driven decision-making, and responding to consumer data requests efficiently.

This is where VIDIZMO Redactor, an AI-powered video and document redaction solution, plays a critical role in MODPA compliance. By leveraging automated redaction, AI-driven data classification, and privacy protection tools, VIDIZMO Redactor helps businesses secure personally identifiable information (PII), protect consumer health data (PHI), and streamline compliance efforts.

Why AI is Essential for Compliance Under MODPA

MODPA requires businesses to collect, process, and store consumer data responsibly. Non-compliance could lead to hefty fines, legal action, and reputational damage. However, ensuring compliance manually is resource-intensive, prone to human error, and inefficient. AI-driven tools like VIDIZMO Redactor offer businesses an automated, efficient, and scalable solution to meet these stringent privacy laws.

AI-powered compliance tools reduce the compliance burden by automating:

• Data Classification & Tagging – Identifying and securing sensitive consumer data in videos, documents, and images.
• Consent Management Tracking – Ensuring that personally identifiable information (PII) is redacted when consumers revoke consent.
• Privacy Risk Assessments – Detecting non-compliant data practices and enforcing redaction policies for MODPA compliance.

For example, an AI-driven compliance dashboard powered by VIDIZMO Redactor can automatically detect non-compliant video recordings containing PII, flag them for redaction, and ensure they are processed in alignment with MODPA’s privacy requirements.

VIDIZMO Redactor for Privacy Impact Assessments (PIAs)

One of MODPA’s most critical compliance requirements is conducting Privacy Impact Assessments (PIAs). These assessments help businesses identify risks associated with handling personal data, ensure transparency in AI decision-making, and proactively mitigate compliance gaps.

VIDIZMO Redactor assists organizations in automating PIAs by:

• Detecting and flagging PII, such as names, faces, license plates, and financial information, in recorded media.
• Applying AI-driven automated redaction to remove sensitive consumer data from videos, documents, and images.
• Enforcing MODPA-compliant data protection policies across enterprise-wide digital content repositories.

For example, a healthcare provider recording telemedicine sessions can use VIDIZMO Redactor to automatically redact patient health information (PHI) before sharing video files, ensuring compliance with both MODPA and HIPAA regulations.

How VIDIZMO Redactor Prevents AI Bias in Automated Decision-Making

MODPA mandates businesses to ensure fairness and transparency in AI-driven decision-making, particularly in hiring, financial services, and law enforcement. AI-driven profiling must not result in biased or discriminatory outcomes, and businesses must allow consumers to opt out of automated decisions affecting them.

VIDIZMO Redactor helps businesses:

• Redact biased AI-driven decisions from recorded conversations, documents, and reports.
• Ensure AI training data does not expose personal identifiers that could result in biased decision-making.
• Mask sensitive demographic data to prevent unintended bias in recruitment, financial scoring, or legal case processing.

For example, an HR department using AI-driven hiring software can use VIDIZMO Redactor to remove gender, ethnicity, or age indicators from video interviews, preventing AI algorithms from unconsciously favoring or discriminating against candidates.

How VIDIZMO Redactor Helps Protect Consumer Health Data Under MODPA

MODPA classifies consumer health data as sensitive personal information, requiring businesses to obtain explicit consumer consent before processing or sharing such data. Organizations handling health records, biometric scans, or telehealth recordings must ensure this data remains private and compliant.

VIDIZMO Redactor simplifies compliance by:

• Automatically detecting and redacting consumer health data, such as medical records, prescriptions, and doctor-patient conversations.
• Applying AI-driven masking to PHI in video recordings, legal documents, and digital communications.
• Ensuring secure data-sharing practices while adhering to MODPA’s strict consent requirements.

For instance, a mental health clinic recording online therapy sessions can use VIDIZMO Redactor to automatically blur patient faces and mute spoken names before storing or sharing session recordings, ensuring compliance with MODPA and HIPAA.

Ensuring Secure Data Breach Notification Compliance with VIDIZMO Redactor

MODPA requires businesses to notify consumers within 30 days of a data breach involving their personal information. Organizations must also take proactive steps to prevent unauthorized access to sensitive data.

VIDIZMO Redactor helps businesses:

• Automatically redact PII from leaked or compromised digital content, reducing data exposure.
• Detect unauthorized access to sensitive video recordings, documents, and images, triggering automated redaction workflows.
• Ensure faster compliance with MODPA’s breach notification requirements by securely managing redacted records.

For example, if a financial institution experiences a data breach involving recorded customer service calls, VIDIZMO Redactor can instantly redact credit card details, personal addresses, and customer names, minimizing the risk of data misuse.

How Businesses Can Use VIDIZMO Redactor for MODPA Compliance

To fully comply with MODPA, businesses must implement AI-driven tools that proactively protect consumer data. VIDIZMO Redactor enables organizations to:

• Automatically detect and redact personally identifiable information (PII) from recorded media.
• Ensure all consumer data is processed in compliance with MODPA’s privacy impact assessments (PIAs).
• Prevent AI bias by masking demographic data in AI-driven decision-making systems.
• Secure consumer health data and other sensitive information to meet MODPA’s privacy requirements.
• Accelerate data breach response by redacting exposed PII and securing compliance logs.

By integrating VIDIZMO Redactor into enterprise compliance workflows, organizations can streamline MODPA compliance, reduce legal risks, and protect consumer trust in an era of evolving data privacy laws.

Key Takeaways

• MODPA Overview: The Maryland Online Data Privacy Act (MODPA) mandates businesses handling consumer data to obtain explicit consent before data collection and ensures strict compliance with privacy standards, including AI transparency and privacy impact assessments (PIAs).

• AI for Compliance: AI-driven tools like VIDIZMO Redactor help businesses automate consent management, redaction of personal data, and privacy risk assessments, making compliance with MODPA more efficient and reducing legal risks.

• Consumer Rights: Under MODPA, consumers have rights to access, correct, delete, and opt out of data collection and processing, including the ability to challenge AI-driven decisions that impact them legally or financially.

• Privacy Impact Assessments (PIAs): Businesses must conduct PIAs for high-risk data processing activities, particularly those involving AI, to ensure compliance and minimize privacy risks associated with consumer data processing.

• Penalties for Non-Compliance: Businesses face significant fines of up to $50,000 per violation for non-compliance with MODPA. Additionally, consumers have the right to file private lawsuits against companies violating their data privacy rights.

• Health Data Protection: MODPA classifies consumer health data as sensitive, requiring explicit consent before processing or sharing such data, including reproductive health, gender-affirming care, and mental health information.

• Breach Notification Requirements: MODPA mandates that businesses notify consumers of data breaches within 30 days, placing urgency on real-time breach detection and response systems to ensure compliance.

• AI Transparency and Fairness: Businesses using AI-driven decision-making must disclose how their systems process data and provide consumers the ability to opt out of AI profiling that affects them.

• Steps for Compliance: To ensure full MODPA compliance, businesses should implement AI-driven redaction tools, conduct regular PIAs, and track consumer consent management while training staff on privacy regulations.

• Future-Proofing with AI: Adopting AI-powered solutions like VIDIZMO Redactor helps businesses streamline compliance, reduce human error, and stay ahead of evolving data privacy regulations like MODPA.

Achieving MODPA Compliance With VIDIZMO

As state-level privacy regulations like MODPA become more stringent, businesses need AI-driven automation to meet compliance requirements quickly and efficiently. VIDIZMO Redactor offers the most advanced AI-powered redaction solution, allowing organizations to automate privacy protection, prevent AI bias, and ensure compliance with MODPA’s strict data privacy mandates.

By leveraging VIDIZMO Redactor, businesses can:

• Ensure consumer privacy without sacrificing operational efficiency.
• Meet MODPA’s AI governance and data security requirements.
• Automate compliance with privacy impact assessments (PIAs) and breach notification mandates.

In an era where data privacy is a competitive differentiator, using VIDIZMO Redactor is the smartest way to stay compliant while maintaining business agility and consumer trust.

By leveraging VIDIZMO Redactor, businesses can automate compliance workflows, protect consumer data, and enforce privacy policies efficiently. From automated redaction of PII and consumer health data to AI-driven risk assessments, VIDIZMO Redactor enables organizations to meet MODPA’s requirements while minimizing legal and financial risks.

To ensure your organization is fully MODPA-compliant, explore how VIDIZMO Redactor’s AI-powered redaction technology can help you secure sensitive data and simplify compliance.

Start Your Free Trial Today or Contact us for a Demo to see VIDIZMO Redactor in action!

People Also Ask 

What is the Maryland Online Data Privacy Act (MODPA)?

The Maryland Online Data Privacy Act (MODPA) is a state law that regulates how businesses collect, process, and store consumer data. It introduces strict consumer consent requirements, AI governance rules, and privacy impact assessments to ensure greater transparency and data protection.

Who does MODPA apply to?

MODPA applies to businesses that control or process personal data of at least 35,000 consumers annually or businesses that process data for 10,000 consumers and derive at least 20% of their revenue from data sales. Companies operating in Maryland or handling Maryland residents’ data must ensure full compliance with MODPA’s regulations.

How does MODPA differ from CCPA and VCDPA?

MODPA is stricter than CCPA and VCDPA, particularly in consumer consent requirements and AI transparency. Unlike CCPA, which allows opt-out options, MODPA requires explicit consumer consent before data collection. It also mandates privacy impact assessments for high-risk data processing, something not explicitly required under CCPA.

What penalties do businesses face for MODPA non-compliance?

Businesses that fail to comply with MODPA may face fines of up to $50,000 per violation. MODPA also allows for private lawsuits, meaning consumers can take legal action against companies that violate their data privacy rights.

How can AI help with MODPA compliance?

AI-powered solutions like VIDIZMO Redactor can help businesses automate MODPA compliance by detecting and redacting sensitive consumer data, tracking consent management, and conducting privacy risk assessments. AI ensures faster and more accurate compliance management, reducing human error and legal risks.

What is a Privacy Impact Assessment (PIA), and why does MODPA require it?

A Privacy Impact Assessment (PIA) is a risk evaluation process that identifies potential privacy risks in data collection and processing. MODPA requires businesses to conduct PIAs for AI-driven decision-making and high-risk data processing to ensure compliance, transparency, and consumer protection.

How does VIDIZMO Redactor help businesses comply with MODPA?

VIDIZMO Redactor provides automated AI-powered redaction for personal and sensitive consumer data in videos, documents, and images. It helps businesses meet MODPA’s compliance requirements by removing personally identifiable information (PII), enforcing privacy policies, and securing consumer health data.

How does MODPA regulate AI-driven decision-making?

MODPA requires businesses to disclose when AI is used for automated decision-making and allows consumers to opt out of AI profiling. Companies using AI for hiring, credit scoring, or targeted advertising must ensure fairness, transparency, and compliance with MODPA’s privacy standards.

What are MODPA’s requirements for consumer health data?

MODPA classifies consumer health data as sensitive information, requiring explicit consent before collection and processing. Businesses handling health records, telemedicine data, or biometric information must ensure data security and compliance with MODPA’s strict protection rules.

How can businesses get started with MODPA compliance?

Businesses can start by conducting privacy impact assessments, implementing AI-driven consent management, automating data subject requests, and using AI-powered redaction tools like VIDIZMO Redactor to secure and manage sensitive consumer data efficiently.