Technology News on December 21st, according to Fortune website report, by 2020, many Americans will get a powerful tool to protect their online privacy. California has introduced a new law that will require businesses to tell consumers what data they collect, and consumers can request that data be deleted.
The law, known as the California Consumer Privacy Act (CCPA), could cause serious disruption to the online economy, as many companies-from tech giants to ordinary retailers-rely on targeted push advertising. If people ask companies to delete their data, the effectiveness of these ads will decline.
For example, as online advertising is no longer personalized as before, Wal-Mart may miss some sales opportunities. At the same time, Google faces the risk of losing a large portion of its revenue because the price of ordinary ads is much lower than targeted push ads that use personal data.
The California law is being emulated by 24 other US states, and its impact could be huge. But people will not exercise their new rights until the new law comes into effect on January 1 next year. And considering that although a similar law called the General Data Protection Regulation (GDPR) was implemented in Europe in 2018, there are not many people using this law to defend their rights, so what exactly will this California law have to do? For the most part it’s just a guess.
Chris May, a corporate risk expert at Deloitte, said: “Is this a big deal for thousands, hundreds of thousands, or millions? We don’t know yet.”
For businesses affected by this privacy protection law, however, the burden of complying with the rules is very realistic. For example, the law requires consumers to provide data or consumers to delete their own data. Companies need to provide consumers with two methods, such as online forms and toll-free numbers. A non-partisan report commissioned by the California Minister of Justice states that California companies will have to spend an additional $ 55 billion in upfront costs, including legal advice and changes to systems. For a single company, the additional costs will be from 55,000 to $ 2 million.
Although the California Consumer Privacy Act is California local law, most large U.S. companies do business in California and are therefore affected. Few companies can afford the cost of exiting this largest US market.
To build a better reputation, some large companies, such as Microsoft, and smaller companies, including Boston-based Internet service provider Starry, have said they will voluntarily comply with the law in all 50 states in the United States. Starry CEO Chet Kanojia said that so far only a few customers have asked to delete their data, and dozens of others have written to the company, thanking them for giving them the option.
Others, such as Tim Day, deputy chairman of the US Chamber of Commerce, are less optimistic about the law. He warned that the law would put thousands of small businesses in trouble, such as flower shops and small breweries.
The California law exempts most companies with sales below $ 25 million. But companies that have at least 50,000 user data-for example, companies that collect customer email addresses can easily reach that threshold-must follow new rules.
“Big enterprises have the ability to solve this problem, but for small businesses, it is an extremely heavy burden, and small businesses are the backbone of the U.S. economy,” Dion said.
As a result, Chris May predicts that many SMEs in the United States may not comply with the law because they believe they will not be punished or that any penalty will be lower than the cost of complying with the law. The law provides for a grace period of six months, and the California Department of Justice will begin implementing the law on July 1. Chris May said small florist shops and breweries are unlikely to be the main target of the law.
California Attorney General Xavier Canberra said in an email: “We have been given the responsibility to enforce this law, so all we have to do is work with consumers and businesses to the best of our ability, Make sure they comply with this law. “
However, this may not be the final conclusion, because the American Chamber of Commerce is lobbying the US Congress to pass a federal law to replace the California law. An earlier attempt by the U.S. tech industry failed, but Dyne said that this push by the American Chamber of Commerce is different than in the past because the organization wants to retain the broad principles of California law, in particular the right to require and delete most personal data, At the same time, more protection will be given to SMEs.
In the U.S. Congress, Democrats and Republicans have rarely reached agreement on passing such a law, despite differences between the two parties over which department should implement the law and whether federal law should take precedence over state privacy laws. Many people think it is unlikely that new legislation will be in place before the 2020 presidential election, but Cameron Kerry, a privacy expert at the Brooking Institution, a think tank, believes that the U.S. attitude to privacy is already Great changes have taken place, and a law may be passed before the 2020 presidential election.