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On December 8, 2023, the California Privacy Protection Agency (CPPA) Board discussed a draft of its forthcoming artificial intelligence (AI) regulations on automated decision making technology (ADMT). The proposed regulations, published earlier on November 27, 2023, would impose significant new requirements on businesses subject to the California Consumer Privacy Act (CCPA) that use ADMT for certain use cases. The ADMT draft rules are expected to be part of the Agency’s larger rulemaking package alongside rules governing cybersecurity audits and risk assessments under the CCPA, as amended by the California Privacy Rights Act. While the draft ADMT regulations currently have no legal effect and are likely to undergo further revision before formal rulemaking begins, the current draft nonetheless provides an important preview of the rigorous new compliance requirements that could later take effect. Notable items put forth for public discussion include:Continue Reading Draft California AI Regulations Become One Step Closer to Reality: An Analysis of Requirements on the Horizon

California residents may soon be able to click “backspace” on data brokers doing business in the state. On October 10, 2023, California Governor Gavin Newsom signed Senate Bill 362, colloquially known as the Delete Act, into law. The statute amends the state’s existing data broker registration law and builds on the state’s primary privacy law, the California Consumer Privacy Act (CCPA), by adding to residents’ ability to exercise their personal information deletion rights. Most notably, the law establishes a one-stop mechanism where state residents will be able to request—in one verifiable request—that all data brokers delete their personal information.Continue Reading California Enacts One-Stop Mechanism for Data Broker Deletion Requests

On October 19, 2023, the Consumer Financial Protection Bureau (CFPB) announced its long-awaited proposed rule regulating “Personal Financial Data Rights” (the proposed rule). The proposed rule implements Section 1033 of the Dodd-Frank Act, which provides consumers the right to access and port their financial information between banks and other financial entities. CFPB Director Rohit Chopra stated that the proposal would accelerate the shift towards open banking and jumpstart competition in the U.S. financial service sector by giving consumers “the power to walk away from bad service” and switch providers.Continue Reading CFPB Announces Proposed Rules to Accelerate Open Banking