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Curt Dale Clark, artistic director at Maine State Music Theatre, in May 2022. He said Tuesday that a data privacy bill being considered by the Legislature would significantly restrict the summer theater's ability to attract out-of-state audiences. (Derek Davis/Staff Photographer)

PORTLAND — Maine business owners and advocates intensified their fight against a data privacy bill Tuesday, gathering to speak out as lawmakers in Augusta push the controversial legislation toward enactment.

Proponents say LD 1822 would not limit businesses’ ability to send targeted online advertising to potential customers. But that’s exactly what business leaders say would happen if the bill passes as proposed.

“Digital outreach is now central to how we fill our seats,” said Curt Dale Clark, artistic director of the Maine State Music Theatre in Brunswick, speaking at a news conference at the Cross Insurance Arena.

“We are a summer theater, but our audience extends well beyond Maine,” said Clark, noting that over 30,000 of the theater’s 76,000 audience members each season live out of state. The theater’s digital advertising strategy allows it to compete nationally for patrons who spend money throughout Maine while they’re here, he said.

“LD 1822 would significantly restrict our ability to reach those out-of-state audiences,” Clark said. “When fewer people hear about us, fewer people make the trip. Reduced reach means reduced attendance.”

The bill is up for final votes in the House and Senate as soon as Thursday, but its future is unclear. The House version initially passed with a three-vote margin, but the Senate passed a different version, exempting political groups, by a two-vote margin.

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Gov. Janet Mills has signaled that she may not support the measure and urged lawmakers to compromise. On Monday, the Senate returned the bill to the House without making any changes other than dropping the exemption for political groups.

The Democrat-led proposal would prohibit companies from collecting an individual’s biometric information, such as fingerprints, unless necessary. It also would ban targeted advertising to minors and the sale of their information.

Proponents say targeted advertising would still be allowed, since it’s based on an active internet search. Prohibited activity would include advertising based on sensitive personal information mined and sold by data brokers — often without the user’s knowledge.

But opponents say complying with the proposed law would be too complicated and costly to navigate — especially for small businesses — making it impossible for many companies to advertise to people searching online for related products or services. They sent a letter reasserting their opposition to legislators and the governor Tuesday that was signed by over 200 business owners and advocates.

“It would put Maine at a severe competitive disadvantage,” said Patrick Woodcock, CEO of the Maine State Chamber of Commerce. “This state has made such strides to try to connect our economy to the modern digital world. We are on the precipice of placing Maine in a regulatory island where it is extremely challenging to identify that next customer.”

The measure comes amid increased scrutiny of how businesses are using consumer data to feed artificial intelligence models and products. Maine would join 20 other states with data privacy rules. Lawmakers have passed competing versions of a bill with strict “data minimization” standards, allowing companies to collect and use only the information necessary to provide a product or service.

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Leaders of the Maine Mariners and Portland Sea Dogs expressed concerns in a Press Herald op-ed last month. Mariners CEO Adam Goldberg said Tuesday he’s not opposed to data privacy, but a more measured approach is necessary to preserve business viability in a digital marketplace.

“The Maine Mariners is a small business,” Goldberg said. “Our finances are on a knife’s edge every season. Our advertising practices are not predatory. But unfortunately not every Mainer is looking to come to a Mariners game, so we need to be as precise as possible with our advertising.”

Representatives of Three Dollar Deweys and Sea Bags also spoke in opposition at the news conference.

Bill sponsor Rep. Amy Kuhn, D-Falmouth, didn’t respond Tuesday to a request for an update on the bill’s progress. She has said that the bill is the result of more the six years of effort in the Legislature and increasingly urgent with the adoption of artificial intelligence tools.

Kelley writes about Maine businesses large and small, focusing on economic development, workforce initiatives and the state’s leading business organizations. Her wider experience includes municipal and...

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