California Governor Gavin Newsom has vetoed a
bill that would have largely prohibited businesses from selling or sharing consumers' sensitive data -- including precise geolocation information.
"While I support the author's
goal of protecting the sensitive personal information of Californians, a categorical ban on sharing that information is a step too far," Newsom stated Sunday.
"Under state law, companies are required to provide California consumers with
the option to limit the sharing of such information, and I worry there may be unintended consequences if consumers are removed entirely from the decision process," he added.
California's
existing privacy law gives state residents the right to tell businesses to limit their use of sensitive data, and enables California residents to opt out of selling or sharing their personal
information.
In addition to generally banning companies' ability to sale or share precise location data (meaning information that can pinpoint people's locations within an 1,850-foot
radius),
Assembly Bill 1542 also would have broadly prohibited businesses from selling or
sharing information including data related to sales or sharing of information about consumers' race, ethnicity, religion, sexual orientation, union membership and health conditions.
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Maryland, Oregon, Connecticut and Virginia have recently
passed similar laws.
Ad industry groups including the Association of National Advertisers, Advertisers American Association of Advertising Agencies, American Advertising
Federation and Digital Advertising Alliance opposed the bill, arguing in a veto request that the measure "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."
Chris Oswald, executive vice president at the Association of National Advertisers,
on Monday cheered news of the veto, adding that the measure represented an "overly broad and ill-conceived approach to consumer data."
The watchdog Consumer Reports
co-sponsored the California bill. Matt Schwartz, senior policy analyst at the group, stated Monday the organization was "disappointed in the governor’s decision to allow businesses to continue
to sell consumers’ sensitive personal information."
He added: “This practice leads to serious consumer harms, including stalking, identity theft, and predatory
targeting and should be stopped, as has been done in several other states."