What Prop 24 Means for Your Data Privacy Strategy

California recently passed Proposition 24, a landmark data privacy referendum that expands privacy protections in the world’s fifth-largest economy. Starting in 2023, the nation’s most comprehensive privacy regulations will protect nearly 40 million people and govern $3.2 trillion in economic output.

Prop 24 will ripple across America, which still lacks a national privacy law. Most companies will choose to extend these privacy protections to all users — rather than address the privacy patchwork with state-specific solutions. That solution is easier and more economical.

#1: Prepare for data privacy enforcement

The passage of Prop 24 creates the Privacy Protection Agency, America’s first government watchdog for privacy and data protection. The statewide agency will have a budget of at least $10 million annually, finally putting enforcement muscle behind privacy protections, something that the previous privacy law (the CCPA) lacked.

#2: Evolve for the end of cookies

Cookies — the small files used to track users across the internet — are on their way out. Good riddance! Cookies were intended to improve the user experience by remembering details about users between sessions. Instead, they became invasive trackers that enabled a massive industry to invade privacy, often without permission.

#3: Put AI to work for data privacy management

Artificial intelligence is at work in other areas of your business — why not put it to work for privacy too?

#4: Monitor your thresholds

The CPRA changes the compliance thresholds in two key ways. First, sharing is now the same as selling. If your business shares data with third parties for commercial purposes (without necessarily selling that data), you’ll be on the hook for compliance.

#5: Innovate now to leap ahead later

In a nod to increased control, Prop 24 adds a new right to limit data sharing, which isn’t covered by California’s prior law, the CCPA. This is a step in the right direction. However, consumers want more than just the right to limit how companies collect, use and share their data. The onus shouldn’t be on the consumer to navigate these complexities; brands should implement user-centric privacy tools that empower consumers, not companies.

Future proof your business against a national privacy law

Absent a national law, California’s robust privacy regulations will likely shape the conversation around federal privacy regulations. It remains to be seen whether politicians will react by prioritizing a national law or if California will set the pace for everyone else.

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