CA's Alleged Consumer Protections May Be National Burden

CA's Alleged Consumer Protections May Be National Burden
(AP Photo/Jeff Chiu, Pool)

In June of 2018, California made waves by passing the California Consumer Privacy Act (CCPA), legislation that aimed to regulate business collection and dissemination of consumer data. Because of the size of California’s economy, the reach of the CCPA extended far beyond the Golden State’s borders. On November 3, Californians voted to expand the scope of the law even further, potentially kicking off another wave of burdensome consumer privacy regulations among other states.

While protecting consumer privacy is a laudable goal, the CCPA places significant compliance burdens on businesses, many of which are located outside of California or don’t fit the traditional notion of a big tech company. In today’s information-driven economy, businesses that collect consumer data aren’t necessarily big social media companies or even shady online advertising firms. That’s why some California steakhouse diners were surprised to find a printed CCPA notice along with their meals; restaurants that collect email addresses for reservations or promotions could run afoul of the law.

 

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