California Passes Bill Requiring Easier Data Sharing Opt-Outs for Consumers

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California has taken a significant step forward in protecting consumer privacy by passing a new bill that requires internet browsers and mobile operating systems to provide easy opt-out options for users wishing to avoid sharing or selling their personal data. The legislation, passed by California lawmakers on Wednesday, mandates the inclusion of an "opt-out preference signal" tool, which will allow consumers to opt out of data sharing with just the push of a button. This change aims to simplify the opt-out process for users across the state.

Under the existing California Consumer Privacy Act (CCPA), residents already have the right to send legally binding opt-out requests to websites and companies. However, the new legislation addresses a significant gap in implementation: the lack of integrated tools in popular browsers and mobile operating systems like Google Chrome, Safari, Edge, Android, and iOS. Currently, consumers are forced to download third-party software to exercise their opt-out rights, a process that is often cumbersome and confusing.

Matt Schwartz, a policy analyst at Consumer Reports, described the new legislation as a game-changer. "It shouldn't be that hard to send the universal opt-out signal," Schwartz said. He highlighted that many Californians are unaware of their right to opt out because current browser settings make this option almost invisible, which he believes has "artificially suppressed" the impact of the CCPA.

The bill has been passed by both the General Assembly and the Senate, although the latter added amendments that require another round of approval from the Assembly. Once finalized, it will be sent to Governor Gavin Newsom for his signature—a step that Schwartz described as a "formality."

If Governor Newsom signs the bill into law, it would require browsers and mobile operating systems to feature a mandatory toggle that consumers can easily activate. This toggle would enable users to send opt-out requests to every website they visit automatically, thereby preventing the unauthorized sharing or selling of their data. This functionality would likely be added as a system setting for operating systems, ensuring comprehensive coverage across all digital platforms, including apps.

The impact of this legislation could be significant. Schwartz pointed out that if widely adopted, this new tool could "severely impact businesses that make their revenue from monetizing consumers’ data." He noted that while only a small percentage of consumers currently exercise their opt-out rights, making the process simpler could lead to millions of users doing so, potentially disrupting the online advertising ecosystem.

California's new law sets an example for other states that have already established comprehensive data privacy policies but have yet to make opt-out options more visible and accessible. Schwartz expressed optimism that the idea would catch on nationwide, noting that about half of the 19 states with data privacy laws require companies to honor consumers' universal opt-out requests.

"All of those states are capable of passing a bill like this to up the ante," Schwartz said. He emphasized the need for more states to follow California’s lead in making consumer data privacy rights clearer and more accessible to all.