California Legislature Passes SB 362 to Regulate Data Brokers
October 5, 2023
The California Legislature recently passed Senate Bill 362 (SB 362) to impose new requirements on data brokers. It also gives residents greater control of personal data. Furthermore, it would close loopholes data brokers use to retain information despite individuals’ requests to delete the personal information.
The bill currently awaits a signature from California Governor Gavin Newsom. California’s Senate initially passed the proposed SB 362 on May 31, 2023. After several amendments, it garnered further approval on September 13, 2023, and cleared legislation on the last day of the 2023 legislative session.
Under SB 362, California consumers would have the right to request that data brokers delete and/or limit the sharing of personal data. It would do so by improving the California Consumer Privacy Act (CCPA), which provides consumers with this right. The bill intends to remove a loophole in the Act concerning the request to delete or limit the sharing of personal data.
Though consumers can request data brokers to delete personal information, the loophole only requires them to delete the information directly acquired from the consumer. As such, information gathered from other sources remains available for use. SB 362 would close this loophole and create new requirements. The additional regulations would address audits, disclosure, record-keeping, and registration.
Examples of the above include the following:
- Data brokers must pay a fee to register with the California Privacy Protection Agency (CPPA), provide it with certain information, and comply with additional requirements;
- The CPPA must make a publicly accessible online deletion mechanism, allowing consumers to request registered data brokers to delete any personal information related to the consumer;
- Require data brokers to access the mechanism at least once every 31 days to process deletion requests and to delete further information acquired about the consumer regularly.
- Prohibit data brokers from selling or sharing further information received about a consumer after receiving a deletion request, though consumers may allow exceptions;
- Data brokers must undergo an independent compliance audit every three years.
If enacted, SB 362 would gradually take effect in 2024 and take full effect in 2028. The bill awaits a signature from Governor Gavin Newsom. However, he has not indicated if he intends to sign it into law.
California employers should know SB 362 would not cover entities protected under the Fair Credit Reporting Act (FCRA). This distinction is because such entities are already highly regulated by the FCRA and similar legislation on the state and federal levels. As such, employers should consider working with a trustworthy background screening provider. The right partner will use their experience to ensure compliance and deliver accurate background check reports.
Stay updated on all the new rules of compliance with Pre-employ’s free news resources on FCRA, EEOC, and more. Contact a Sales Rep today for more information.
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October 5, 2023\n
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The California Legislature recently passed Senate Bill 362 (SB 362) to impose new requirements on data brokers. It also gives residents greater control of personal data. Furthermore, it would close loopholes data brokers use to retain information despite individuals’ requests to delete the personal information.\u00a0\n\n
The bill currently awaits a signature from California Governor Gavin Newsom. California’s Senate initially passed the proposed SB 362 on May 31, 2023. After several amendments, it garnered further approval on September 13, 2023, and cleared legislation on the last day of the 2023 legislative session.\n
Under SB 362, California consumers would have the right to request that data brokers delete and\/or limit the sharing of personal data. It would do so by improving the California Consumer Privacy Act (CCPA), which provides consumers with this right. The bill intends to remove a loophole in the Act concerning the request to delete or limit the sharing of personal data.\n
Though consumers can request data brokers to delete personal information, the loophole only requires them to delete the information directly acquired from the consumer. As such, information gathered from other sources remains available for use. SB 362 would close this loophole and create new requirements. The additional regulations would address audits, disclosure, record-keeping, and registration.\n
Examples of the above include the following:\n
\n
- Data brokers must pay a fee to register with the California Privacy Protection Agency (CPPA), provide it with certain information, and comply with additional requirements;\n
- The CPPA must make a publicly accessible online deletion mechanism, allowing consumers to request registered data brokers to delete any personal information related to the consumer;\n
- Require data brokers to access the mechanism at least once every 31 days to process deletion requests and to delete further information acquired about the consumer regularly.\n
- Prohibit data brokers from selling or sharing further information received about a consumer after receiving a deletion request, though consumers may allow exceptions;\n
- Data brokers must undergo an independent compliance audit every three years.\n\n
If enacted, SB 362 would gradually take effect in 2024 and take full effect in 2028. The bill awaits a signature from Governor Gavin Newsom. However, he has not indicated if he intends to sign it into law.\u00a0\n
California employers should know SB 362 would not cover entities protected under the Fair Credit Reporting Act (FCRA). This distinction is because such entities are already highly regulated by the FCRA and similar legislation on the state and federal levels. As such, employers should consider working with a trustworthy background screening provider. The right partner will use their experience to ensure compliance and deliver accurate background check reports.\n
\n
Stay updated on all the new rules of compliance with Pre-employ\u2019s free news resources on FCRA, EEOC, and more. Contact a Sales Rep today for more information.\n\n
\n
The California Legislature recently passed Senate Bill 362 (SB 362) to impose new requirements on data brokers. It also gives residents greater control of personal data. Furthermore, it would close loopholes data brokers use to retain information despite individuals’ requests to delete the personal information.\u00a0\n\n
The bill currently awaits a signature from California Governor Gavin Newsom. California’s Senate initially passed the proposed SB 362 on May 31, 2023. After several amendments, it garnered further approval on September 13, 2023, and cleared legislation on the last day of the 2023 legislative session.\n
Under SB 362, California consumers would have the right to request that data brokers delete and\/or limit the sharing of personal data. It would do so by improving the California Consumer Privacy Act (CCPA), which provides consumers with this right. The bill intends to remove a loophole in the Act concerning the request to delete or limit the sharing of personal data.\n
Though consumers can request data brokers to delete personal information, the loophole only requires them to delete the information directly acquired from the consumer. As such, information gathered from other sources remains available for use. SB 362 would close this loophole and create new requirements. The additional regulations would address audits, disclosure, record-keeping, and registration.\n
Examples of the above include the following:\n
- \n
- Data brokers must pay a fee to register with the California Privacy Protection Agency (CPPA), provide it with certain information, and comply with additional requirements;\n
- The CPPA must make a publicly accessible online deletion mechanism, allowing consumers to request registered data brokers to delete any personal information related to the consumer;\n
- Require data brokers to access the mechanism at least once every 31 days to process deletion requests and to delete further information acquired about the consumer regularly.\n
- Prohibit data brokers from selling or sharing further information received about a consumer after receiving a deletion request, though consumers may allow exceptions;\n
- Data brokers must undergo an independent compliance audit every three years.\n\n
If enacted, SB 362 would gradually take effect in 2024 and take full effect in 2028. The bill awaits a signature from Governor Gavin Newsom. However, he has not indicated if he intends to sign it into law.\u00a0\n
California employers should know SB 362 would not cover entities protected under the Fair Credit Reporting Act (FCRA). This distinction is because such entities are already highly regulated by the FCRA and similar legislation on the state and federal levels. As such, employers should consider working with a trustworthy background screening provider. The right partner will use their experience to ensure compliance and deliver accurate background check reports.\n
\n
Stay updated on all the new rules of compliance with Pre-employ\u2019s free news resources on FCRA, EEOC, and more. Contact a Sales Rep today for more information.\n\n
- The CPPA must make a publicly accessible online deletion mechanism, allowing consumers to request registered data brokers to delete any personal information related to the consumer;\n