As we move into 2026, the landscape of privacy and cybersecurity laws presents daunting challenges for enterprises. The rapid evolution of legislation coupled with the complexities introduced by artificial intelligence (AI) creates a compliance maze that many companies may find difficult to navigate.
Despite the ongoing updates to laws and regulations, compliance challenges are expected to persist, particularly at the federal level where new legislation may be limited. The Department of Justice (DoJ) recently introduced a Data Security Program, while the Federal Trade Commission (FTC) updated the Children's Online Privacy Protection Act (COPPA), and the Department of Health and Human Services proposed amendments to the Health Insurance Portability and Accountability Act (HIPAA). These updates reflect the significant changes in the regulatory environment over the past decade.
Industry experts, including David Saunders, a privacy and cybersecurity partner at McDermott, Will, and Schulte, emphasize the difficulty of maintaining compliance amidst such rapid changes. "It's hard to expect compliance from companies when it's constantly changing. At some point, it has a deterrent effect on compliance," he explains.
What to Expect in 2026
As compliance becomes a substantial undertaking for many enterprises, the urgency to adhere to laws passed in 2025 remains. Three critical legal actions are on the agenda for 2026: minimum age requirements for apps, expanded data privacy mandates, and regulations regarding AI usage in human resources.
Age verification laws for applications are particularly pressing. Proposed regulations from various states aim to enforce age checks during app downloads, impacting both developers and app stores like Google and Apple. For instance, a Texas Senate bill designed to enhance app accountability was temporarily blocked by a federal judge, while a similar law in Louisiana is under appeal.
Despite the legal uncertainties, companies are proactively preparing for compliance due to API documentation released by major players such as Apple and Google, which places additional responsibilities on developers to ensure that content for children is appropriately gated. The implications of these laws are significant, particularly for businesses that rely on advertising.
Future Legislative Trends
Looking forward, the California Consumer Privacy Act (CCPA) will introduce new requirements that will compel companies to conduct cyber-risk audits and assessments. Though some provisions are already in effect, the full impact of the CCPA will be felt as companies scramble to comply with stricter regulations surrounding sensitive data and consent notifications.
The use of AI in human resources also raises concerns regarding discrimination and bias. As states begin to regulate the application of AI in hiring and promotion processes, companies must stay vigilant to avoid potential pitfalls. Illinois, for example, has amended its Human Rights Act to address these growing concerns.
Federal and State Dynamics
The legal landscape at the federal level remains uncertain, with the Trump administration's inconsistent approach to cybersecurity policies raising questions about future regulatory actions. Experts predict that existing laws will be enforced more rigorously, particularly for industries tied to national security, while new regulations may still be on the horizon.
At the state level, attorney general offices are expected to take a more active role in enforcement, filling the void left by the federal government. Saunders suggests that this shift could lead to a patchwork of regulations, complicating compliance for businesses operating in multiple jurisdictions.
"If anything happens on the federal level, I'll give you a nickel," Saunders remarks, highlighting the likelihood that states will lead the charge in regulatory changes moving forward.
Staying Ahead of Compliance Challenges
As organizations brace for the unpredictable nature of privacy laws in 2026, understanding which regulations apply remains a formidable task. Each state’s unique definitions and requirements further complicate compliance efforts. Experts recommend that companies focus on major regulatory developments to mitigate risk.
"The question is, 'How do you find the ones who are generating the most risk and will require the most investment?'" Saunders advises. Staying informed about significant legislative updates can often lead to inadvertent compliance with other applicable laws.
In summary, as privacy and cybersecurity laws continue to transform, businesses must remain agile and proactive. The stakes are high, and the ability to effectively navigate this evolving landscape will be critical for long-term success.
Source: Dark Reading News