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Strongest Data Protection in US Now Law in California

02 July, 2018, 14:27 | Author: Tara Roberts
  • Strongest Data Protection in US Now Law in California

As previously reported, just last Thursday California lawmakers announced Assembly Bill 375, "The California Consumer Privacy Act of 2018" (the "CCPA"), as an alternative to the California Consumer Privacy Act ballot initiative (the "Initiative").

The ban was signed into law by Gov. In what has been described as a "Hobbesian" choice by one state legislator, AB 375 is now on the cusp of passing. The legislation will take effect January 1, 2020.

Today's developments represent a significant compromise with Alastair Mactaggart, the lead sponsor of a ballot initiative that would have brought similar proposals to California voters in November.

Companies will be required to disclose the types of data they collect about consumers and with whom they share that information, and let consumers opt-out of having their data sold.

The California Consumer Privacy Act has gotten the support of most privacy advocates, but some have pointed out that there are a few loopholes in the law that could cause problems.

Under the bill, consumers could ask companies what personal data they've collected, why it was collected and what categories of third parties have received it. Consumers could ask companies to delete their information or that they refrain from selling it.

Laws originating in the legislature instead of from ballot initiatives are easier to amend if issues arise.

Google and Facebook each gave $200,000 to a committee opposed to the ballot initiative, according to California financial disclosures, as did AT&T Inc., Verizon Communications Inc. and Comcast Corp., which often find themselves on opposite side of policy fights from the internet companies.

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The new law allows consumers to be able to sue social media companies if their data is misused.

The California bill would not affect four local soda taxes that were passed in the state in recent years.

State Sen. Bob Hertzberg, a Democrat, said during a live-streamed news conference Thursday: "This is a huge step forward for California".

On Thursday, the state legislature rushed to approve the last-minute, quid pro quo deal between one of the state's largest labor unions and the American Beverage Association. If the bill fails, he says he'll push forward with the initiative.

"I've been in politics a long time, and sometimes you have to do what's necessary to avoid catastrophe", said Sacramento Mayor Darrell Steinberg, who is pushing a local sales tax increase that would be at risk if the ballot measure passed.

Here's what went down, as the Sacramento Bee reports: Major beverage companies like Coca-Cola, PepsiCo, and their trade organization the American Beverage Association backed a ballot measure in California that would have made it extremely hard to raise local taxes and fees for any reason whatsoever (including non-beverage-centered taxes).

Look for further and more in-depth insights from Manatt on this legislative activity and similar issues in the near future. Lawmakers said that's not the bill's intent.

Associated Press food industry writer Candice Choi contributed. Strengthening internet privacy gained traction with the public this year after Facebook acknowledged that the political data firm Cambridge Analytica had ended up with information from 87 million users' profiles without their consent.

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