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Privacy Updates

A Look at the New California Consumer Privacy Act of 2018

June 29, 2018
In yet another historic moment for data protection legislation, a new privacy bill was passed in California on June 28, 2018. The Consumer Privacy Act of 2018 (AB 375) is considered by many to be the strictest privacy bill in U.S. history and grants individuals the ability to know the personal data businesses collect and prevents the sale of said data to third parties without consumer consent. It will go into effect on January 1, 2020. Under this new law, personal information will include:
  • An individual’s name (first and/or last),
  • E-mail address,
  • IP address, and
  • Browsing and search history.

This bill is being closely compared to the EU’s GDPR due to its strict directives and increased advocacy for data subjects rights. However, California’s Consumer Privacy Act gives consumers the choice to opt-out of their data being shared with third parties, instead of having to opt-in in order to continue using an online service. Companies will not be able to sell the data of data subjects who choose to opt out, but they will be able to charge opt-out customers more for the service, establishing a “pay-for-privacy” standard.

The proposed bill was proposed as a compromise to keep a version of the bill with stricter requirements off the ballot in November. Lawmakers and activists from Californians for Consumer Privacy were able to come to an agreement that strengthened consumer protections but included a concession that violations would only be enforced by the state attorney general. Now that the bill has passed, it will have a great impact on both companies headquartered within the state of California, the tech capital of the world, and those in states across the U.S. The acceptance of this law in California, a state with significant political influence, a large population, and credence in the tech industry, may be a push for more holistic privacy laws across the whole country.  

As we assess the impact this new law will have on businesses, consumers, and the world of data privacy, we’ll be sharing more insights into this important piece of legislation right here on our blog.

More Info:

Full Text of the Consumer Privacy Act of 2018

Insights from the IAPP

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Disclaimer: Focal Point Data Risk, LLC is not a law firm and does not provide legal advice. This content is intended for informational purposes only.


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