Why Small Businesses Should Ignore California’s Newest Data Privacy Law

The measure’s detractors, including the American Civil Liberties Union of Northern California and the Consumer Federation of California, argue that the effort creates a “pay-for-privacy” structure that allows companies to essentially charge consumers more in exchange for not selling their data. The new law also allows companies to refuse to delete information if they believe it’s vital for security purposes.

That’s code for allowing companies to hold onto personal data. “Given that the California attorney general and federal regulators do not have the power, budget, or will to enforce penalties, most organizations will likely continue to hoard data because it is easy and rationalize it under the auspices of security and integrity,” said Joel Wallenstrom of Wickr, a secure messaging platform.

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