In a significant shift towards consumer data rights, California lawmakers recently passed a law that expands data broker registration obligations and drastically simplifies the process for consumers to be “forgotten.” The newly enacted Delete Act seeks to rectify the State’s already prevalent Data Broker Registration law and is expected to substantially influence the data collection industry. Here are five significant questions that have surfaced in the industry following its pass.
According to JD Supra, the Delete Act will provide consumers access to a centralized location where they can submit a solitary deletion request for their data by all circa 500 registered data brokers. With this Act, consumers no longer have to approach each company separately to request their data removed, a greatly improved process for data deletion.
- How will this law change data deletion and retention practices?
- What impact will this have on data brokers’ business models?
- Are there expected changes to consumer behavior?
- How will this affect international businesses?
- Will Governor Newsom sign SB 362?
Companies might need to revamp their existing practices regarding data retention and deletion based on the Delete Act. Companies will now need to respond to deletion requests sent through the centralized portal, potentially rerouting resources to ensure these requests are promptly and adequately handled.
The Act may force data brokers to reassess their business models. With consumers now possessing an easier method to request the deletion of their data, the amount of data available to brokers could significantly decrease. This decline could directly impact their revenue flow and force a strategy pivot.
With the greatly simplified process for data deletion requests, consumers now hold more rights regarding the control of their personal data. This improvement may increase data deletion requests and potentially alter consumer behavior in their interactions with data-collecting companies.
As California often sets the standard with comprehensive data protection laws, international companies, particularly those dealing with California residents, need to closely monitor and comply with the updated regulations. The Delete Act may also inspire similar measures in other jurisdictions.
The last piece of the puzzle remains whether Governor Newsom will sign SB 362 into law or not. While there have been no clear indications as of now, his decision will invariably steer the data collection industry into its next era.
As the data collection industry continues to evolve, so must the regulatory measures surrounding it. The Delete Act is another step towards strengthening consumer rights in the digital age, leading to more questions than answers at this stage.