Indiana E-commerce Regulations

In order to protect consumer rights in e-commerce platforms, Indiana has implemented regulations to guard consumer data and regulate online money transmissions. Specifically, this blog focuses on the Indiana Consumer Data Protection Act and the Indiana Model Money Transmission Modernization Act.

Have you ever registered for an electronic platform but later received spam calls or emails? Have you ever worried about the safety of typing in your personal information or payment method on an online shopping website? Indiana, recognizing these concerns, has implemented several regulations to protect consumer’s rights in electronic commerce. Electronic commerce (e-commerce) usually refers to the buying and selling of goods and services online. As E-commerce is becoming widely used, Indiana’s regulations are crucial in areas such as consumer data and privacy, and businesses’ compliance in monetary transactions. By understanding these regulations, consumers, businesses, and legal professionals can be better informed and aware of their rights and responsibilities in the e-commerce landscape.

For example, the Indiana Consumer Data Protection Act (INCDPA) was implemented to safeguard personal data, making Indiana the seventh state to pass a comprehensive online privacy law absent federal guidelines. The law will take effect on January 1, 2026. It provides consumers the right to know if a business is processing their personal data, to correct inaccuracies in data they provided, and to request access to that data. Consumers can also request the deletion of their personal data under certain circumstances and can opt out of the sale of their personal data and targeted advertisements. INCDPA further requires that consumer’s sensitive data cannot be obtained without consent, which includes a consumer’s racial or ethnic origin, religious beliefs, mental or physical health diagnosis, and geolocation. INCDPA requires data controllers to collect only data that is reasonably necessary for the purpose of processing and implementing appropriate data security measures. The controllers are given 30 days to resolve violations of INCDPA.

The Indiana Money Transmitter Bill, also known as the Model Money Transmission Modernization Act (MTMA) repeals and replaces Indiana’s existing law on money transmitters, expanding the definition of money transmission to include business purposes. MTMA mandates businesses to implement consumer protection measures, including transparent disclosure of fees, terms and conditions, and providing consumers with procedures to resolve complaints. It also requires businesses to ensure the security of consumer data through strong cybersecurity measures and to have plans in place to resolve data breaches and other incidents. Additionally, it mandates companies to maintain a certain level of financial stability and solvency, including maintaining certain capital reserves. This approach to money transmission regulation in Indiana should help protect consumers in online transactions.

Have questions about your rights on e-commerce platforms? Want to make sure that your small business is compliant with recent changes to e-commerce laws? Contact the Indiana small business attorneys of McNeelyLaw today at 317-825-5110.

This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion of any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.