The bill H.812, introduced by Representative Priestley of Bradford, establishes the Vermont Duty of Data Loyalty Act, which aims to enhance privacy protections and data security for consumers in Vermont. It introduces key definitions such as "covered data," "data broker," and "biometric data," clarifying the types of information subject to regulation and the responsibilities of businesses that handle such data. The legislation outlines the obligations of "covered entities," which are businesses that determine the purposes and means of collecting and processing covered data, while also specifying exclusions for certain entities, such as government bodies and small businesses. The bill emphasizes consumer consent and transparency, aiming to protect individuals from potential harms associated with data misuse.

Additionally, the bill mandates that covered entities provide individuals with specific rights regarding their personal data, including access, correction, deletion, and exportation of their data. It prohibits retaliation against individuals exercising these rights and establishes guidelines for algorithm use to prevent discrimination. Covered entities are required to conduct annual assessments of algorithms that pose risks of harm and to maintain clear privacy policies. The legislation also outlines the responsibilities of service providers and large data holders, including compliance certifications and data security measures. Overall, H.812 seeks to create a comprehensive framework for data protection, ensuring ethical handling of personal data and fostering a trustworthy digital environment.