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

Vermont requires businesses to notify affected consumers of a data breach within 45 days of discovery under 9 V.S.A. 2435. Companies must also send a preliminary notice to the Vermont Attorney General within 14 business days of discovery, one of the few two-stage notification processes in the country.

Vermont operates one of the more protective data breach notification frameworks in the United States. While many states require a single notification to their attorney general alongside consumer notices, Vermont stands apart with its two-stage reporting process: a preliminary notice to the Attorney General within 14 business days, followed by consumer notification within 45 days.

The current law is codified at 9 V.S.A. 2430 (definitions) and 9 V.S.A. 2435 (notification requirements). Originally enacted in 2006, the statute underwent major revisions through Act 89 of 2020 (S.110), effective July 1, 2020, which expanded the definition of personal information, added login credentials protections, and created the 14-business-day preliminary AG notice requirement.

For a broader look at Vermont's privacy framework, see the parent guide to Vermont Data Privacy Laws.

Who Must Comply

Vermont's law applies to "data collectors," which the statute defines broadly. A data collector is any person, association, municipality, corporation, or other entity that, for any purpose, receives, stores, maintains, processes, or otherwise has access to personally identifiable information of Vermont residents.

This includes both private businesses and government entities. Third-party service providers that handle personal information on behalf of a data collector are also subject to the law.

Entities regulated by the Vermont Department of Financial Regulation (DFR), such as banks, insurance companies, and other financial institutions, must report breaches to DFR rather than the Attorney General. All other entities report to the AG.

What Qualifies as Personal Information

Under 9 V.S.A. 2430, "personally identifiable information" is defined as a consumer's first name or first initial and last name combined with any of the following unencrypted data elements:

• Social Security number
• Driver's license or nondriver state identification card number, individual taxpayer identification number, passport number, military identification card number, or other identification number that originates from a government identification document that is commonly used to verify identity for a commercial transaction
• Financial account number or credit or debit card number, if the number could be used without additional identifying information, access codes, or passwords
• A password, personal identification number, or other access code for a financial account
• Unique biometric data generated from measurements or technical analysis of human body characteristics, such as a fingerprint, retina, or iris image
• Genetic information
• Health records or records of a wellness program or similar program of health promotion or disease prevention, a health care professional's medical diagnosis or treatment of the consumer, or a health insurance policy number

The 2020 amendments through Act 89 added several of these categories, including biometric data, genetic information, passport numbers, military IDs, and taxpayer identification numbers.

The health category matters beyond the list itself. It is the exact cross-reference that defines the scope of Vermont's HIPAA carve-out, discussed below, so a breach that reaches health data plus any other category falls outside that carve-out.

Login credentials are also independently protected. A consumer's username or email address combined with a password or security question answer that permits access to an online account qualifies as protected information, even without a name match.

Personal information does not include publicly available information lawfully made available to the general public from government records.

What Triggers the Notification Requirement

A "security breach" under Vermont law means the unauthorized acquisition of electronic data, or a reasonable belief of unauthorized acquisition, that compromises the security, confidentiality, or integrity of a consumer's personally identifiable information or login credentials maintained by a data collector.

When a data collector becomes aware of a potential breach, it must conduct an investigation. If the investigation determines that personal information has been or is reasonably believed to have been compromised, the notification requirements are triggered.

The discovery date is not the date the investigation is completed. It is the earliest date the entity became aware of, or had a reasonable belief of, unauthorized activity affecting personal information.

The Two-Stage Notification Timeline

Vermont's notification framework has two distinct deadlines, making it more demanding than most states.

Stage 1: Preliminary Attorney General Notice (14 Business Days)

Within 14 business days of discovering or being notified of a security breach, the data collector must submit a preliminary notice to the Vermont Attorney General.

This preliminary notice is kept confidential by statute. It allows the AG's office to begin monitoring the situation and provide guidance before consumer notifications go out. The preliminary form captures basic information about the breach, including what happened, what data was affected, and the estimated number of Vermont residents impacted.

For entities regulated by the Department of Financial Regulation, this preliminary notice goes to DFR instead.

Stage 2: Consumer Notification (45 Days)

The data collector must notify affected consumers as soon as possible and without unreasonable delay, but no later than 45 days after discovery or notification of the breach.

The 45-day clock starts from the date the entity discovered or was notified of the breach, not from the date the investigation concluded.

Law enforcement may request a delay in consumer notification if it would impede a criminal investigation. Notification must proceed as soon as law enforcement determines it will no longer compromise the investigation.

What the Consumer Notice Must Include

Vermont specifies the content of breach notification letters. Notices to affected consumers must include:

• A description of the incident in general terms
• The type of personally identifiable information that was compromised
• Steps the data collector has taken to protect the consumer's data from further breaches
• A telephone number for the data collector that the consumer may call for further information and assistance
• Advice directing the consumer to remain vigilant by reviewing account statements and monitoring free credit reports
• The approximate date of the security breach

For breaches involving login credentials specifically, the notice must direct the consumer to promptly change their password and security questions for the affected account and for any other account where the consumer used the same credentials.

Attorney General Reporting

In addition to the 14-business-day preliminary notice, the data collector must submit a completed Security Breach Reporting Form to the Attorney General once the investigation is complete and consumer notices have been sent.

The AG's office maintains a public list of security breach notices on its website, providing transparency about breaches affecting Vermont residents.

There is no minimum threshold for AG notification in Vermont. Even a single affected Vermont resident triggers the reporting requirement.

Notice to Consumer Reporting Agencies

Large breaches carry a third reporting duty that is easy to miss. Under 9 V.S.A. 2435(c), a data collector that provides notice to more than 1,000 consumers at one time must also notify, without unreasonable delay, all consumer reporting agencies that compile and maintain files on consumers on a nationwide basis, as defined in 15 U.S.C. 1681a(p).

That notice to the nationwide credit bureaus must cover the timing, distribution, and content of the consumer notice. It is a notice about the notice, not a transmission of the affected consumers' data.

This subsection does not apply to a person who is licensed or registered under Title 8 by the Department of Financial Regulation.

Substitute Notice

Vermont allows substitute notice when direct notification is not feasible. Under 9 V.S.A. 2435(b)(6)(B)(i), a data collector may use substitute notice if either of the following is true:

• The data collector demonstrates that the lowest cost of providing direct notice to affected consumers, among written, e-mail, or telephonic notice, would exceed $10,000
• The data collector does not have sufficient contact information

Only one of those two conditions has to be met. The statute is written in the alternative.

Once substitute notice is available, the delivery method has two required parts: conspicuously posting the notice on the data collector's website if the data collector maintains one, and notifying major statewide and regional media.

Encryption Safe Harbor

Vermont provides an encryption safe harbor. Personal information that is encrypted, redacted, or protected by another method rendering it unreadable or unusable by unauthorized persons is not subject to the notification requirements.

The encryption must have been in place at the time of the unauthorized acquisition. If encryption keys were also compromised in the breach, the safe harbor does not apply.

Exception: Misuse Is Not Reasonably Possible

Encryption is not the only path out of the consumer notice duty. Under 9 V.S.A. 2435(d)(1), notice is not required if the data collector establishes that misuse of the personally identifiable information or login credentials is not reasonably possible.

That determination is not self-executing. To rely on it, the data collector must provide notice of the determination, along with a detailed explanation supporting it, to the Vermont Attorney General, or to the Department of Financial Regulation if the collector is a person or entity licensed or registered with the Department under Title 8 or Title 9. The collector may designate that filing as a trade secret if it meets the definition in 1 V.S.A. 317(c)(9).

The exception can also expire. Under 9 V.S.A. 2435(d)(2), if the data collector later obtains facts indicating that misuse of the information has occurred or is occurring, the duty to notify consumers under subsection (b) revives.

Interaction with Federal Regulations

Vermont's statute carves out two categories of federally regulated entities, and the two carve-outs work very differently.

HIPAA-covered entities. Under 9 V.S.A. 2435(e), a data collector subject to the privacy, security, and breach notification rules adopted in 45 C.F.R. Part 164 pursuant to HIPAA is deemed to be in compliance with Vermont's subchapter if two conditions are met: the security breach is limited to the health information specified in 9 V.S.A. 2430(10)(A)(vii), and the data collector provides notice to affected consumers under the federal breach notification rule in 45 C.F.R. Part 164, Subpart D. The statute as it stands today attaches no separate Vermont notice condition to that deemed compliance. If the breach reaches any other category of personal information, the carve-out does not apply and Vermont's requirements, including the 14-business-day preliminary notice, govern.

That changes on January 1, 2027. Act 138 adds a third condition at 9 V.S.A. 2435(e)(3): the data collector must also provide notice to the Attorney General or the Department of Financial Regulation under 9 V.S.A. 2435(b)(3)(B), along with a written certification of compliance with 45 C.F.R. Part 164, Subpart D.

Financial institutions. 9 V.S.A. 2435(g) exempts from the section entirely a financial institution that is subject to the Federal Interagency Guidance Response Programs for Unauthorized Access to Consumer Information and Customer Notice, issued March 7, 2005 by the Board of Governors of the Federal Reserve System, the FDIC, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision, or to the National Credit Union Administration's Final Guidance on Response Programs for Unauthorized Access to Member Information and Member Notice, issued April 14, 2005. The exemption keys to those named interagency guidances, not to the Gramm-Leach-Bliley Act, which the section does not mention.

One obligation survives that exemption. Under 9 V.S.A. 2435(g)(3), a financial institution regulated by the Department of Financial Regulation must notify the Department as soon as possible after it becomes aware of an incident involving unauthorized access to or use of personally identifiable information. That is a promptness standard, not the 14-business-day deadline that applies to data collectors generally.

Upcoming Changes Effective January 1, 2027

Governor Scott signed Act 138 (H.211) into law on June 16, 2026. Act 138 amends the notice provisions of 9 V.S.A. 2435 and creates a new, parallel statute at 9 V.S.A. 2436, the Data Broker Security Breach Notice Act, both effective January 1, 2027.

The amendments to 9 V.S.A. 2435 tighten the telephonic notice method, requiring at least five attempts to reach the consumer for a live conversation before the data collector may leave a voicemail about the breach, and add the new HIPAA condition at subsection (e)(3) described above.

The new Data Broker Security Breach Notice Act requires data brokers specifically to notify affected Vermont consumers within 45 days and to submit a preliminary notice to the Attorney General within 14 business days, mirroring the timelines that already apply to data collectors generally under 9 V.S.A. 2435. Act 138 also updates related data broker definitions and registration requirements, including raising the data broker registration fee from $100 to $900 annually.

The 45-day consumer notice deadline, the 14-business-day preliminary AG notice, the encryption safe harbor, and the $10,000-per-violation penalty described in this article remain current law today. This section will be updated again once Act 138 takes effect.

Enforcement and Penalties

The Vermont Attorney General enforces the breach notification law under the authority of the Vermont Consumer Protection Act (9 V.S.A. Chapter 63). State's attorneys may also enforce the law within their jurisdictions. For a data collector that is licensed or registered with the Department of Financial Regulation under Title 8 or Title 9, enforcement authority sits with the Department instead, under 9 V.S.A. 2435(h)(2).

There is no private right of action under the breach notification statute. Only the AG, state's attorneys, and DFR for the entities it regulates can bring enforcement actions.

The penalty comes from the Consumer Protection Act rather than from the breach statute itself:

• Under 9 V.S.A. 2458(b)(1), a court may impose a civil penalty of not more than $10,000 for each unfair or deceptive act or practice in commerce
• Under 9 V.S.A. 2461(a), a person who violates the terms of an injunction issued under 9 V.S.A. 2458 pays a further civil penalty of not more than $10,000 for each violation

Neither 9 V.S.A. 2435 nor the Chapter 63 provisions it borrows sets a per-day or per-consumer multiplier. How many separate violations a late or missing notice produces is argued case by case, not fixed by the text of the statute.

The AG may also issue Civil Investigative Demands (civil subpoenas) to investigate potential violations and may seek injunctive relief to compel compliance.

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