California Consumer Privacy Act of 2018: opt out right: mergers.
The introduction of AB 1824 represents a significant addition to California's privacy framework by regulating how consumer data must be handled in business transactions. By requiring compliance with consumer opt-out directions during business transfers, the bill ensures that consumers maintain control over their personal information, thus preventing unauthorized sales or sharing under new business ownership. This legislative change is expected to foster a more consumer-centric approach to data management in California, creating a ripple effect across state laws concerning personal data protection.
Assembly Bill No. 1824, authored by Valencia, amends the California Consumer Privacy Act (CCPA) to enhance consumer privacy during corporate transitions. Specifically, it establishes that when a business transfers personal information as part of a merger, acquisition, or bankruptcy, it must honor any opt-out requests made by consumers to the original business. This amendment aims to bolster consumer rights by ensuring their data preferences are respected even when the ownership of their data changes. Furthermore, the bill reaffirms the intent of the California Privacy Rights Act of 2020, which aimed to provide California residents with stronger privacy protections.
The sentiment surrounding AB 1824 reflects a proactive response to increasing concerns over data privacy, especially in light of high-profile data breaches and privacy violations. Proponents of the bill emphasize that it empowers consumers and aligns with the broader movement for more stringent data privacy regulations. Critics, however, may raise concerns regarding the burdens it could impose on businesses during mergers and acquisitions, arguing that compliance challenges could inhibit business operations and innovation.
Notably, AB 1824 is linked to AB 1949, which proposes additional amendments to the same section of the Civil Code. The interdependence of these two bills, particularly regarding their enforcement timelines and conditions under which they become operative, highlights a complex legislative process. The outcome of this synergy may lead to potential conflicts or redundancies that need to be addressed during the implementation phase. Moreover, balancing consumer protection with business interests remains a contentious point in the ongoing dialogue regarding data privacy legislation.