Sweeping California Data Privacy Law Heads Off Referendum

July 3, 2018

A digital privacy law that gives consumers more control over their personal information online raced through the state legislature unopposed, and was signed into law on June 28, barely beating a deadline that the sponsors of a ballot initiative seeking even tougher oversight had set. The bill is modeled closely on the ballot initiative, and gained the grudging support of legislators and the tacit approval of the state’s powerful tech and business lobby because they were aware that the initiative would gain overwhelming approval. It grants consumers the right to know what information companies are collecting and with whom it is being shared. Consumers can tell companies to delete their information, or not to sell or share it. Businesses must still give consumers who opt out the same quality of service as those who don’t. Several legislators complained that they had no choice because a ballot measure would provide little flexibility to make changes in the future. Privacy advocates complained that the bill, unlike the initiative, doesn’t allow individuals to sue companies for not complying. The initiative’s sponsor said that the legislature was the right place to debate the issue, but until legislators faced the threat of an initiative no such debate had taken place. A much less comprehensive bill failed to get out of committee last year.

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