California's New Data Broker Rules Boost Consumer Control
The California Privacy Protection Agency (CPPA) has introduced new regulations for data brokers, effective from 2024 onwards. These rules aim to enhance transparency and consumer control over personal data. Key changes include annual registration, audits, and enhanced disclosure requirements.
Data brokers, defined as businesses buying and selling consumer information without direct consumer interaction, must register annually with the CPPA. The first registration is due by January 31, 2025, with a registration fee. Failure to register may result in fines and administrative actions.
From July 1, 2024, data brokers must update their website privacy policies to include statistics about consumer requests received and complied with in the previous calendar year. Starting January 1, 2029, brokers must confirm during their annual registration if they have undergone an independent audit, with reports submitted to the CPPA upon request. These audits will occur every three years, starting from January 1, 2028.
New disclosure requirements, effective from 2025, mandate that data brokers detail the types of sensitive data they collect, such as biometric data or reproductive health care data. Businesses maintaining direct consumer relationships but selling indirectly acquired personal data are also considered data brokers and must comply with these regulations. From August 1, 2026, data brokers must provide an accessible deletion mechanism for consumers to request deletion of their personal information every 45 days.
The CPPA's new data broker regulations, effective from 2024, aim to increase transparency and consumer control over personal data. Key changes include annual registration, enhanced disclosure requirements, regular audits, and improved deletion mechanisms. Data brokers must comply with these rules to avoid potential fines and administrative actions.
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