U.S. Chamber Opposes Delaware HB 380, Says Data Privacy Amendment Would Hurt Small Operators

The U.S. Chamber of Commerce has formally opposed Delaware House Bill 380, which would amend the Delaware Personal Data Privacy Act (DPDPA) — the state's existing consumer data privacy statute — in ways the Chamber says would create new compliance burdens for small and mid-sized businesses operating in the state.

The Chamber's position, released through its public comments process, is not that Delaware got privacy law wrong when the General Assembly passed the DPDPA. The organization has previously said it believes that underlying law strikes a workable balance. The objection is specifically to what HB 380 would layer on top of it. For more on the topic discussed above, see Local Biz Wire.

What the Amendment Would Change

HB 380 proposes modifications to how Delaware businesses can collect, process, and use personal data. The Chamber's comments argue the bill would restrict data practices that small businesses currently rely on to reach customers, run targeted marketing, and compete against larger companies with bigger in-house compliance infrastructure. A sole proprietor running a regional e-commerce shop or a small professional services firm does not have a legal department to navigate layered privacy mandates — the Chamber's argument is that HB 380 would functionally advantage larger operators who can absorb those costs.

The concern is practical, not abstract. Delaware has roughly 86,000 small businesses, according to U.S. Small Business Administration data, and they employ approximately 47 percent of the state's private-sector workforce. Any change to state commercial law that raises compliance costs hits that population disproportionately hard.

Critics of the Chamber's position would note that stronger consumer privacy protections can themselves build trust — and that businesses benefiting from looser data rules are not always the ones consumers would side with if they understood how their information was being used. That counterargument has traction in the legislature and is part of why HB 380 was introduced in the first place.

What Local Business Owners Should Watch

HB 380 is moving through the Delaware General Assembly, which means the window for business owners and trade groups to weigh in through their own representatives or via the committee process is still open. Chamber affiliates, including the Delaware State Chamber of Commerce, are the organizations most likely to coordinate that kind of engagement at the state level.

If the bill passes in its current form, businesses that handle personal data of Delaware residents — not just companies headquartered there — may need to revisit their privacy policies, consent mechanisms, and data-sharing agreements with third-party vendors. That applies to any operator selling to Delaware consumers online, regardless of where the business is physically located.

The practical takeaway: do not wait for final passage to get a read on your current data practices. Pull up your privacy policy, identify what third-party data processors you use, and ask whether your current setup would meet a stricter consent standard. If you are unsure, that is a conversation to have with counsel now, before the amendment becomes law and the timeline compresses.