Extract from Maria Dinzeo’s article “California’s Latest Trailblazing Privacy Rules Getting Criticized From Every Direction”
Business, labor and consumer interests expressed sharply differing views at a public forum Wednesday over proposed California rules that would govern how companies use customers’ personal information for anything from hiring decisions to advertising.
The California Privacy Protection Agency rules, in the works since the latter half of 2023, require companies that use automated decision-making technology to provide consumers with notice, a way to opt out, and a way to find out how the business uses ADMT to make decisions about them.
Because California has established itself as a trailblazer on privacy policy, the evolution of the CPPA rules is being closely watched nationally. Since California in 2018 became the first to enact comprehensive privacy legislation, more than a dozen other states have done so,
The proposed ADMT rules discussed at Wednesday’s public hearing in Sacramento mandate that companies conduct risk assessments on how they use and protect personal information and what the consequences and benefits might be to consumers.
They must comply if they use ADMT for “extensive profiling” for behavioral advertising or to observe people in public places using facial recognition, or make a “significant decision” about hiring or denying goods and services. They’ll also be subject to the rule if they use personal information to train artificial intelligence or ADMT tools.
