Californians passed a new privacy law that gives the state more power to squeeze companies over data practices—particularly as they relate to advertising—and the industry is concerned about a hodgepodge of similar laws sprouting all over the U.S. Meanwhile, a divided Washington might not step in to offer consistent national guidelines in 2021, leaving brands at the mercy of 50 separate data policies.
On Wednesday, California’s desire for stricter privacy regulations was one of the few certain outcomes of Election Day. California reported that Proposition 24 was on track for an easy victory, approving the California Privacy Rights and Enforcement Act (CPRA). The CPRA is basically a sequel to CCPA, the California Consumer Privacy Act, which took effect only this summer. Both acts strike at the heart of how companies collect data on consumers and how they use that data, especially in online advertising.
CCPA became enforceable just four months ago, says Dave Grimaldi, EVP for public policy at the Interactive Advertising Bureau, the industry trade group. “We need more time to assess what works and doesn’t work in CCPA, not CPRA,” Grimaldi says.