Ads Seriously Jeopardized by CA Initiative

May 17, 2018

ANA is helping lead the opposition to a California ballot initiative that would dramatically change how consumer information is collected and shared. The California Consumer Privacy Act of 2018 will likely be on the ballot on November 6th and would apply to almost every company that conducts substantial business in California and collects personal information about their customers. It also covers companies outside the state which have a controlling interest in or are controlled by a California company subject to the Act. It threatens major financial penalties and class action lawsuits for companies charged with violating the Act.

If passed, the proposal would make sweeping changes:

  • It would give consumers the right to demand from companies all of the personal information that has been collected about them, both online and offline, for the preceding 12 months and information on all third-parties to which personal data is sold.
    • IMPACT: Your company would face major collection and compliance costs and an increased risk of data breach.
  • Companies would be required to give consumers the ability to opt out of any sale or sharing of this information to any other company.
    • IMPACT: Your ability to provide special promotional offers, discounts, or additional features to your best customers would be restricted. 
  • Any company that suffered a data breach or failed to comply with a consumer’s opt out request would be subject to serious financial penalties ranging from $1,000 to $7,500 per violation.
    • IMPACT: A breach of 1 million records, at a minimum, could result in $1 billion in civil penalties, even if no consumer was harmed by the breach.

ANA is working with the California Chamber of Commerce and a broad range of companies and industry groups to fight this measure. We urge our members and other associations to join the list of groups who are publicly opposing this misguided proposal. Please contact our Washington, D.C. office for more information.

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