In a significant move towards enhanced digital privacy, Governor Newsom signed SB 362 into law on October 10th. Enacted to better protect California residents’ personal data, the law mandates any business that qualifies as a “data broker” to provide comprehensive disclosures about its practices. In addition, these businesses are required to register with the state and fulfil any verifiable deletion requests concerning the personal data of Californian residents.
The bill, known as the Delete Act, passed as part of California’s sustained effort to regulate data brokers who collect, buy, and sell personal consumer data. The expanding role of data in our economy has led to a surge in businesses leveraging personal data in ways that might not align with the individual’s best interests. The Delete Act aims to give individuals the power to take control of their data, knowing how it is used, and who is using it.
The ins and outs of the Delete Act are crucial for legal professionals working with data-driven businesses to understand, particularly those operating in California. Here are some key points for corporate law teams to consider:
- Commercial entities that collect personal data need to register themselves with the California Department of Justice
- A catalog of personal data collected, bought, or received for a commercial purpose should be maintained, with detailed disclosures about the data categories and purposes of data collection
- Businesses must outline their procedures for responding to deletion requests from consumers
- They should clearly define their procedures for verifying the identity of the person making the request
- The bill requires the implementation of data deletion procedures upon receiving a verified request
For businesses acting as data brokers, compliance with this legislation is paramount. Given the bill’s implications, legal professionals should ensure they are up to speed with the particulars of the law to provide informed and effective advice to their clients. As the broader discussion on digital privacy evolves, industry watchers should keep a close eye on how this legislation shapes the digital landscape in California and beyond.