In effect since January 1, 2026, the Indiana Consumer Data Protection Act (ICDPA) is a state privacy law which gives Indiana residents greater control over their personal information while setting clear responsibilities for businesses that collect, use, and store that data.
Under the ICDPA, individuals have the right to ask businesses what personal data they collect about them, request access to that information, correct any inaccurate details, ask for their data to be deleted, and opt out of targeted advertising or the sale of their personal information.
For businesses that collect or process data from Indiana residents, this means they must follow the requirements of the ICDPA to avoid potential legal and regulatory consequences.
Below, we will walk through everything you need to know about the ICDPA, so you can clearly understand what steps your organization needs to take to stay compliant.
The Objectives of Indiana’s Consumer Data Protection Act
The Indiana Consumer Data Protection Act was created to bring more clarity, responsibility, and trust to the way personal data is handled in the digital economy. As businesses rely more heavily on data to deliver services and improve customer experiences, the law sets out to ensure that this information is treated with care and transparency.
At its heart, the ICDPA aims to create a balanced relationship between organizations that use data and the individuals who provide it.
Its main objectives include:
| Giving consumers control over their personal data | The law gives Indiana residents the right to access, correct, delete, and manage how their personal information is used. |
| Transparency in data practices | Businesses must clearly explain what data they collect, how it is used, and whether it is shared or sold to third parties. |
| Data security expectations | Organizations must implement reasonable security measures to protect personal information from unauthorized access, misuse, or breaches. |
| Responsible data management | The ICDPA promotes responsible data collection and processing practices, including limiting data use. |
| Reducing privacy risks | Companies must conduct data protection assessments when handling sensitive data or engaging in activities that may pose higher risks to people. |
Who Must Comply with ICDPA?
When Indiana’s Consumer Data Protection Act came into effect, many organizations realized that privacy compliance was no longer limited to large tech companies. Any business that collects and uses personal information from Indiana residents in large amounts needs to understand and follow this law, including:
- Medium and large businesses in Indiana that collect or manage large amounts of personal information.
- Companies based outside Indiana that sell products or services to Indiana residents and gather their personal data.
- Technology companies and SaaS providers that collect, store, or process user information through digital platforms.
- E-commerce and retail businesses that handle customer accounts, payment information, or online activity data.
- Financial institutions and insurance companies that work with sensitive personal and financial details.
- Marketing, analytics, and advertising companies that use personal data for targeted ads, tracking, or customer profiling.
Exemptions from Coverage
Not every organization falls under the scope of the Indiana Consumer Data Protection Act. Some businesses and types of data are excluded to avoid forcing companies to comply with multiple overlapping regulations at the same time.
These include:
- Organizations already regulated under federal laws such as the Health Insurance Portability and Accountability Act (HIPAA) or the Gramm-Leach-Bliley Act (GLBA)
- Nonprofit organizations
- Colleges or universities
The Main Business Compliance Requirements of ICDPA
Following the ICDPA is not only about avoiding fines, but about building strong, responsible data practices that customers in Indiana can rely on and trust.
Key compliance requirements include:
- Provide clear privacy notices. Businesses must clearly explain what personal information they collect, how they use it, and whether they share it with third parties.
- Respond to consumer requests. Companies must give individuals the ability to access their data, correct inaccurate information, request deletion, receive a copy of their data, and opt out of certain data uses.
- Protect personal data with strong security measures. Organizations are expected to use appropriate technical, administrative, and physical security measures to keep personal information safe.
- Only collect and keep necessary data. Businesses should collect personal data only for valid business reasons and avoid keeping it longer than needed.
- Carry out data protection assessments. When handling sensitive information or higher-risk activities like profiling or targeted advertising, companies must review and assess potential privacy risks.
- Work with secure vendors and partners. If third parties handle data on a company’s behalf, contracts must verify that those partners follow proper data protection standards.
Consequences for Non-compliance with the Indiana Consumer Data Protection Act
For businesses that operate in Indiana or work with customers from the state, ignoring the ICDPA can lead to serious problems. While individuals cannot usually sue companies directly under this act, the state can step in and enforce penalties when needed. That means the risks for businesses are still very real.
Companies that do not comply may face:
- Civil penalties of up to $7,500 for each violation, enforced by the Indiana Attorney General.
- Investigations and legal action if a business fails to respect consumer rights or does not properly protect personal data.
- Required corrective actions, such as improving security measures, updating privacy policies, or fixing internal processes.
- Damage to reputation and customer trust, which can affect long-term growth and revenue.
The law may provide a 30-day period to correct certain violations after being notified. Even so, the best approach is to stay compliant from the start and build strong data protection practices that customers can trust.
Best Practices for Businesses to Comply with ICDPA
The ICDPA expects businesses to protect the personal information of Indiana residents and respond responsibly if something goes wrong. The following best practices can help you strengthen your security posture and stay aligned with its requirements.
- Build strong cybersecurity foundations. Start with the essentials, like training your employees on cybersecurity awareness, keeping systems and software up to date, and putting basic security controls in place (strong passwords, access controls, and multi-factor authentication).
- Identify and fix vulnerabilities regularly. Routine security testing, including penetration testing and vulnerability scanning, can reveal weaknesses in your systems. Addressing these issues early helps prevent data breaches and reduces compliance risks.
- Review third-party security practices. Many breaches occur through vendors and partners. Make sure any third party with access to your systems or data follows strict security standards and understands their responsibilities under privacy laws.
- Create and maintain an incident response plan. Even with strong defenses, incidents can happen. A clear response plan helps your team act quickly, contain threats, notify affected parties, and meet legal requirements.
- Keep clear data handling policies. Document how your business collects, uses, stores, and protects personal information. Clear internal policies support consistent compliance across your organization.
Ultimately, the best way to stay compliant is to work with a trusted cybersecurity expert, because privacy laws and cyber threats continue to evolve. Partnering with a knowledgeable cybersecurity provider in Indiana can help your business stay protected, compliant, and prepared for new challenges.
Stay Ahead of Evolving Indiana’s Privacy Laws with CyberGlobal
Keeping up with privacy regulations like the Indiana Consumer Data Protection Act can feel overwhelming, especially when you’re already focused on running your business and managing everyday risks. But with the right cybersecurity partner by your side, you no longer have to figure it all out on your own.
At CyberGlobal Indiana, what drives our work is not only the commitment to deliver high-quality cybersecurity services, but also the desire to stand beside you as a true ally, every step of the way.
Our Governance, Risk, and Compliance services in Indiana are built to make things clearer and easier. We help you understand what the law expects from your business and turn those requirements into simple, practical steps that you can actually follow.
From third-party risk assessments and policy creation to ongoing compliance support, we work with you to build a strong, reliable foundation for protecting personal data.
Reach out today, and we’ll stand by your side to help you stay secure, compliant, and confident about the future.
