California Passes Prop 24

Written by
Ross Andrewsarrow icon

California Passes Prop 24

Written by
Ross Andrews

Consumer data privacy has long been a topic of focus for many. Initiatives like GDRP and CCPA have already put tremendous restrictions in place to help protect consumers and give them the access and resources to control what data is collected on them. In Tuesday’s election, Californians moved further ahead with data privacy initiatives by passing Proposition 24. What is Prop24:

Proposition 24, also known as the California Privacy Rights and Enforcement Act of 2020, expanded and amended the provisions of the California Consumer Privacy Act of 2018 (CCPA), created the California Privacy Protection Agency, and removed the ability of businesses to fix violations before being penalized for violations. The ballot initiative required businesses to do the following:

  • not share a consumer's personal information upon the consumer's request;
  • provide consumers with an opt-out option for having their sensitive personal information, as defined in law, used or disclosed for advertising or marketing;
  • obtain permission before collecting data from consumers who are younger than 16;
  • obtain permission from a parent or guardian before collecting data from consumers who are younger than 13; and
  • correct a consumer's inaccurate personal information upon the consumer's request.

Prop 24 also authorized a $10M annual budget for a state run regulatory group that will oversee consumer data holders and enforce Prop 24 rules. This was seen as a major win for pundits of CCPA who said that without regulatory resources, most businesses that violated CCPA just found loopholes to wriggle out of fines and punishment.

Prop 24 obviously has huge implications for the tech and startup community. With stricter rules around consumers data and greater regulatory oversight, tech companies will need to design their platforms with the ability for their customers to have complete visibility of their stored data and the ability to control it.

As with any regulatory changes, there comes opportunity. Will be see a new wave of startups providing products and services to help brands fairly collect consumer data? Given that most existing tech companies are not set up for this dichotomy, could a service emerge that essentially provides all the infrastructure necessary to automate that process. Declared data platforms such as Jebbit have been around for several years now, is this the moment where their platform comes to the forefront?

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