• by Wendy Davis , Yesterday

Ad industry groups are urging California Governor Gavin Newsom to veto a recently passed bill that would broadly restrict businesses from selling or sharing consumers' sensitive data -- including precise geolocation information.

The bill "would unnecessarily disrupt data practices that allow consumers to receive relevant content and advertising, enabling them to learn about goods and services through relevant marketing," the Association of National Advertisers, Advertisers American Association of Advertising Agencies, American Advertising Federation and Digital Advertising Alliance say in a letter sent to Newsom on Tuesday.

The measure (Assembly Bill 1542) recently cleared the state legislature and is now headed to Newsom's desk.

The watchdog Consumer Reports co-sponsored the bill. “Consumers’ sensitive information is routinely sold to third parties that have no right to it,” Justin Brookman, the group's director of technology policy, stated Monday.

"While businesses often need personal data to deliver requested products and services, they should not be selling it behind our backs," he added. "This bill ends that practice by providing default protections for Californians’ privacy and safety."

In addition to curbing companies' ability to sale or share precise location data (meaning information that can pinpoint people's locations within an 1,850-foot radius), the bill would also restrict businesses from selling or sharing information including data regrading sales or sharing of information about consumers' race, ethnicity, religion, sexual orientation, union membership and health conditions.

Maryland, Oregon, Connecticut and Virginia have recently passed similar laws.

The ad groups argue to Newsom that the California bill raises "significant First Amendment concerns" because it restricts "the dissemination of lawfully obtained, truthful information."

The organizations add: "The bill’s overinclusive approach would also undermine essential fraud prevention and identity protection services, which depend on responsibly shared location data by third parties to detect suspicious activity and protect consumers from financial loss."