What happened?

On September 20, 2024, the California governor vetoed AB 3048, which would enable consumers to send an opt-out preference signal.

What are the details?

Key Bites:

• Assembly Bill 3048 (AB 3048) would have required internet browsers and mobile operating systems to include privacy opt-out settings for California consumers and aimed to enhance consumer privacy by simplifying the process of opting out of personal data collection and sharing.
  • The bill’s key provisions

• California Governor Gavin Newsom recently vetoed AB 3048 expressing concerns about mandating such features on operating system developers, noting that while many internet browsers already offer similar options, mobile operating systems do not. He emphasized that design questions should be addressed by developers rather than regulators to ensure mobile device usability.
• Governor Newsom highlighted his commitment to consumer privacy by referencing SB 362, which requires the California Privacy Protection Agency to establish a mechanism for consumers to request data deletion from brokers.
• The veto has caused some controversy.
• The veto maintains the status quo, where many web browsers offer built-in privacy controls or support for privacy-enhancing extensions, but mobile operating systems generally lack system-wide opt-out settings for data sharing.

Business Considerations

• Employers should proactively include privacy opt-out settings in their digital products to enhance consumer trust and comply with best practices, even in the absence of mandated requirements.
• Employers should consider working closely with developers to address design questions and ensure that privacy features are user-friendly and do not compromise the usability of mobile devices.
• Employers should monitor industry trends and technological advancements to continuously improve privacy practices and stay ahead of regulatory changes.

Source References

• CA AB 3048
• California Governor vetoes privacy bill AB 3048 (PPC Land)
• California governor vetoes landmark bill for privacy rights (Consumer Reports, Inc.)
• Office of the Governor Veto
• Governor Newsom signs landmark bill to protect kids from social media addiction, takes action on other measures (Governor Gavin Newsom)

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