California continues to pioneer consumer data privacy regulation in the United States, this time with the enactment of the country’s most comprehensive law pertaining to data brokers, as reported by Bloomberg Law.
Defined as companies that gather and sell personal information from multiple sources, including the internet and public records, data brokers have faced growing public and political scrutiny. These substantial data sets, which are often sold to other companies for advertising, identity verification, and other uses, came under fresh regulatory oversight with the implementation of the new California law known as S.B. 362.
The unique aspect that sets this California law apart from potential similar laws in other states is the introduction of a “delete button”. With this consumer feature, Californians will have the ability to erase all their data from all brokers within a single interaction, a step in data management that no other state has mandated till now.
While detailed implementation plans are still under discussion, the overarching question centers around how this delete mechanism will function, ensuring it serves the purpose it’s intended for without creating unintentional consequences. The discussion around this question is particularly interesting to corporations and firms dealing extensively with user data, as it may set precedents that could shape future data privacy laws and their own data management practices.
This law forms part of California’s continuing effort to bolster data protection mechanisms and may inspire similar legislation in other states. It’s recommended for legal professionals to take a close look at how this law evolves, understanding and anticipating its effect on their respective corporation or firm’s operations.