Tennessee Data Breach Notification Laws: Reporting Rules & Timelines (2026)

Tennessee requires businesses to notify affected residents of a data breach no later than 45 days after discovery under Tenn. Code Ann. 47-18-2107. The law applies to any entity conducting business in Tennessee that owns or licenses computerized data containing personal information of state residents.

Tennessee's data breach notification law is codified at Tenn. Code 47-18-2107 within the state's Identity Theft Deterrence Act (Part 21 of the Tennessee Consumer Protection Act). Originally enacted in 2005, the statute received significant amendments in 2016 and 2017 that added a firm 45-day notification deadline and technical encryption requirements.

If your business handles personal information belonging to Tennessee residents, a data breach triggers specific notification obligations. Tennessee stands out among states for granting a private right of action to injured consumers, allowing individuals to sue for both damages and injunctive relief.

This guide covers the full requirements under Tennessee law, including how they connect to the broader Tennessee data privacy laws framework.

Who Must Comply

Tennessee's law applies to any "information holder," which includes any person or business that conducts business in Tennessee and owns or licenses computerized data that includes personal information of Tennessee residents. State agencies and political subdivisions are also covered.

The law also applies to third-party data maintainers. Any entity that maintains computerized data on behalf of another entity must notify the data owner or licensee within 45 days of discovering a breach. The data owner then carries the obligation to notify affected consumers.

Federal Law Exemptions

Section 47-18-2107(i) states that the section "does not apply to any information holder that is subject to" either of the following federal frameworks:

• Title V of the Gramm-Leach-Bliley Act (GLBA) for financial institutions
• Health Insurance Portability and Accountability Act (HIPAA), as expanded by the HITECH Act, for covered healthcare entities and their business associates

Read the exemption carefully: it is status-based. An information holder that is subject to GLBA Title V or HIPAA is outside Section 47-18-2107 altogether, and the statute does not condition that on the entity actually following its federal notification procedures. A covered entity that mishandles a federal notice does not thereby fall back into Tennessee's 45-day duty or the private right of action in subsection (h).

These entities do still owe their federal breach notification obligations, which are enforced under federal law rather than under Section 47-18-2107.

What Triggers Notification

Under Section 47-18-2107, a "breach of system security" means the unauthorized acquisition of computerized data that materially compromises the security, confidentiality, or integrity of personal information maintained by the information holder.

The key term is "materially compromises." Not every unauthorized access triggers notification. The breach must materially affect the security of the personal information, giving entities some latitude to assess whether a technical incident rises to the level of a reportable breach.

Good Faith Exception

A good faith acquisition of personal information by an employee or agent of the information holder is not a breach, provided the information is not used or subject to further unauthorized disclosure.

Encryption Safe Harbor

Tennessee provides an encryption safe harbor tied to a specific federal standard. Under the 2017 amendment (SB 547, Public Chapter 91, effective April 4, 2017), data encrypted in accordance with the Federal Information Processing Standard (FIPS) 140-2 is protected from breach notification requirements, as long as the decryption process or key was not also acquired, released, or used without authorization during the breach.

This is a more specific standard than many states require. FIPS 140-2 is the federal government's standard for cryptographic modules, and it means businesses must use validated encryption methods rather than just any encryption algorithm.

Personal Information That Triggers the Law

Tennessee's definition of personal information is relatively narrow compared to states that have updated their laws in recent years. Under Section 47-18-2107, personal information means an individual's first name or first initial and last name, in combination with any one or more of the following data elements:

• Social Security number
• Driver's license number
• Account, credit card, or debit card number, in combination with any required security code, access code, or password that would permit access to the individual's financial account

What Tennessee's Law Does Not Cover

The definition does not extend to:

• Medical or health information
• Health insurance identification numbers
• Biometric data
• Passport numbers
• Email credentials (usernames with passwords)
• Taxpayer identification numbers (other than SSNs)

Personal information does not include information lawfully made available to the general public from federal, state, or local government records, or information that has been redacted or otherwise made unusable.

The 45-Day Notification Timeline

Notification must be made no later than 45 days from the discovery or notification of the breach of system security. That deadline came from the 2016 amendment (SB 2005, Public Chapter 692, effective July 1, 2016), which replaced the statute's earlier open-ended timing language with a fixed number of days.

The 2017 amendment is a different change. SB 547 rewrote the encryption provisions, as described above. It did not set the 45-day clock.

Law Enforcement Delay

Notification may be delayed if a law enforcement agency determines that notification will impede a criminal investigation. Once law enforcement determines that notification will no longer compromise the investigation, the information holder must provide notification within 45 days of that determination.

Third-Party Data Holders

When a third party that maintains data on behalf of another entity discovers a breach, the third party must notify the data owner or licensee within 45 days. The data owner then has its own 45-day window to notify affected consumers.

Who Must Be Notified

Affected Individuals

Every Tennessee resident whose personal information was, or is reasonably believed to have been, acquired by an unauthorized person must receive notification.

Consumer Reporting Agencies (1,000+ Threshold)

When an information holder must notify more than 1,000 persons at one time, the holder must also notify, without unreasonable delay, all nationwide consumer reporting agencies (Equifax, Experian, and TransUnion) of the timing, distribution, and content of the consumer notices.

No Mandatory AG Notification

Tennessee's breach notification statute does not require direct notification to the Attorney General for private-sector breaches. This is unusual among states that have modernized their breach notification laws. The Tennessee Attorney General has enforcement authority under the Tennessee Consumer Protection Act but does not receive mandatory breach reports under Section 47-18-2107.

For state agencies, a separate provision (Tenn. Code 8-4-119) requires notification to the Comptroller of the Treasury within five working days of a confirmed or suspected breach.

Methods of Notification

Tennessee permits two primary notification methods:

• Written notice sent to the individual
• Electronic notice, if consistent with the federal E-SIGN Act (15 U.S.C. 7001) or if electronic communication is the entity's primary method of communication with the resident

Substitute Notice

Substitute notice is available when the cost exceeds $250,000, the affected class exceeds 500,000 persons, or the entity lacks sufficient contact information. Substitute notice requires all three of: email notice to available addresses, conspicuous posting on the entity's website, and notification to statewide media.

Your Own Notification Procedures

Subsection (f) of Section 47-18-2107 adds a separate compliance path that businesses often miss. An information holder that maintains its own notification procedures as part of an information security policy for the treatment of personal information, where that policy is otherwise consistent with the timing requirements of the section, is in compliance with the statute when it notifies affected persons in accordance with those policies.

This covers the mechanics of how notice goes out, not the deadline. The policy has to be consistent with the section's timing, so the 45-day clock still governs.

Penalties and Enforcement

Private Right of Action

Tennessee is one of the states that grants a private right of action for breach notification violations. Under Section 47-18-2107, any customer of an information holder (that is a person or business entity, not a state agency) who is injured by a violation may institute a civil action to:

• Recover damages resulting from the violation
• Obtain injunctive relief to enjoin the information holder from further violations

These rights are cumulative, meaning they exist in addition to any other rights and remedies available under law.

Section 47-18-2104 governs how this private action proceeds. The lawsuit must be filed within two years from the date the liability arises; if the information holder concealed the violation, the two-year period runs from when the person discovers it instead. The plaintiff must serve a copy of the complaint, and later any judgment, on the Attorney General. If the court finds the violation involved identity theft committed willfully or knowingly, it may award treble (3x) damages, and the court may award the prevailing plaintiff reasonable attorneys' fees and costs.

Whether a Class Action Is Available Is Unsettled

Tennessee Code 47-18-109(g) bars class action lawsuits seeking damages for an unfair or deceptive act or practice declared to be unlawful by Part 1 of the Consumer Protection Act. That bar is written into Part 1. The breach notification private right of action lives in Part 21 (Section 47-18-2107(h), procedurally governed by Section 47-18-2104), which contains no class action restriction of its own.

The counterargument sits in the same part as the breach statute. Section 47-18-2106(b) provides that "for the purpose of application of the Tennessee Consumer Protection Act, any violation of this part shall be construed to constitute an unfair or deceptive act or practice affecting trade or commerce and subject to the penalties and remedies as provided in that act." A defendant would use that deeming language to argue that a Part 21 breach notification claim is, for Consumer Protection Act purposes, exactly the kind of unfair or deceptive act the Part 1 class action bar reaches.

Treat this as a contested question rather than a settled one. Do not plan a case on the assumption that a class action is available; ask Tennessee counsel how courts are reading Section 47-18-2106(b) against Section 47-18-109(g).

Attorney General Enforcement

The Tennessee Attorney General has authority to enforce the breach notification law under Part 21 of the Tennessee Consumer Protection Act. Under Tenn. Code 47-18-2105(d), a violation is punishable by a civil penalty of whichever amount is greater: $10,000, $5,000 per day for each day a person's identity has been assumed, or 10 times the amount obtained or attempted to be obtained through the identity theft. This penalty is cumulative with other remedies available under the Tennessee Consumer Protection Act, and the AG can also pursue injunctive relief and consumer restitution for violations.

The Tennessee Information Protection Act (TIPA)

Tennessee enacted the Tennessee Information Protection Act (TIPA) in 2023, with an effective date of July 1, 2025. TIPA is a comprehensive consumer privacy law that creates new obligations for data controllers, including requirements around data minimization, purpose limitation, and consumer rights.

TIPA does not replace the breach notification requirements of Section 47-18-2107. The two laws operate independently: TIPA governs how businesses collect and use personal information, while Section 47-18-2107 governs what happens when that information is breached.

This article provides general legal information about Tennessee data privacy laws and breach notification requirements. It is not legal advice, and it does not create an attorney-client relationship. Data breach response involves time-sensitive obligations. Consult a qualified attorney licensed in Tennessee for guidance specific to your situation.

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