Magazine article American Banker

California Passes Nation's First Statewide Consumer Privacy Law

Magazine article American Banker

California Passes Nation's First Statewide Consumer Privacy Law

Article excerpt

Byline: Laura Alix

The state of California has passed a sweeping law that gives its 39 million residents more control over and insight into how companies use their personal data.

A similar measure that gathered enough signatures to qualify for a statewide ballot was withdrawn after Democratic Gov. Jerry Brown signed the bill into law on Thursday. Though consumer privacy advocates applauded the bill's passage, banks, technology companies and other business groups had opposed it as burdensome.

"California consumers should be able to exercise control over their personal information and should have reasonable certainty that there are safeguards in place to protect against misuse of their personal information," Assembly member Ed Chau, a Democrat, said at a press conference after the governor signed the bill. "It is also possible for businesses both to respect consumers' privacy and provide a high level of transparency to their business practices."

The law gives Californians the right to know all the data that companies collect on them and for what purpose, to refuse the sale of their personal information, and to delete their data. It also mandates an opt-in for children under 16. Additionally, the legislation makes it easier for consumers to sue after a data breach.

The law goes into effect in January of 2020. The first of its kind in the nation, the proposal had drawn comparisons to the European Union's General Data Protection Regulation for regulating the use of consumer data. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.