Last week, California voters passed Proposition 24, The
Consumer Privacy Rights Act (CPRA), to strengthen California’s existing data privacy
laws, which are already deemed to be the most comprehensive and consumer-protective
of anywhere in the United States. More specifically, the CPRA will allow consumers
to stop businesses from selling and sharing certain personal information,
including race, religion, sexual orientation, and specific geographic location.
It will also restrict how companies like Google and Facebook track users and
gather data on them. Prop 24 could be a huge blow to these companies that
rely on sharing user data with advertising partners to make money, and perhaps force these
business models to evolve in order to be CPRA-compliant. Even though the CPRA
will only technically apply in California, it is important to note that California’s
rules may effectively apply across the US given California’s tremendous presence
and influence in the tech industry. Other states have also been considering their
own consumer privacy law enhancements.
While the CPRA will not become enforceable until 2023, it is
important for companies that rely heavily on digital targeting to begin preparing
over the next couple years: these companies should re-examine what constitutes “personal
information” under the CPRA definition, understand which of their partners have
access to what information, and familiarize themselves with penalties for CPRA violations
that would not be violations in other states (more information on penalties to
be released by California regulators).
Sources: https://www.businessinsider.com/prop-24-privacy-california-data-tracking-facebook-google-2020-11 , https://www.adweek.com/programmatic/what-media-industry-needs-to-know-californias-privacy-law-cpra/
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