What does California’s new privacy law mean for companies and consumers?
When California Assembly Bill 375 (AB 375), also known as the California Consumer Privacy Act, goes into effect in 2020, companies stand to face the toughest privacy requirements in the United States. The purpose of AB 375 is to create transparency and control for consumers and their data, and to establish meaningful requirements for companies that collect and use that data. Some notable conditions under AB 375 include the following:
- Companies must inform consumers of the data they collect and the purposes for which it is used.
- Consumers can require companies to delete their data and direct companies to cease the sale of their data.
- Companies will be required to disclose to consumers their right to request deletion of their data and their right to opt out of the sale of their data.
- Companies that collect, sell, or disclose consumer data must disclose the categories of data that were collected, sold, or disclosed, as well as the third parties to whom the data was sold or disclosed.
- Consumers will have the right to obtain their data in a portable format such that it may be provided to another entity.