Posted in Blog
By Tony Liu, Founder and Principal Business Trial Attorney
In Summary:
California’s privacy regulators are considering significant rule changes that could affect how businesses collect, share, and secure personal information. These proposals stem from growing concerns about dark patterns, data minimization, and consumer opt-out rights. Business owners must understand these proposed updates to stay compliant, avoid penalties, and maintain consumer trust. This article explains what the new rules are, how they could impact your operations, and what steps you should take now.
What’s Changing in California Privacy Law?
What’s Changing in California Privacy Law?California’s Office of Administrative Law is reviewing new regulations that would expand the California Consumer Privacy Act (CCPA) and its 2023 amendment, the California Privacy Rights Act (CPRA). These changes are aimed at strengthening consumer protections, addressing deceptive practices, and bringing clarity to how businesses must operate in the digital age.
(Read the full CEB article)
Key Areas of Focus:
1. Dark Patterns Under Fire
The regulators want to eliminate deceptive user interface designs, commonly called “dark patterns”, that discourage consumers from opting out of data sharing. New rules will clarify what constitutes a “symmetrical choice” when users are presented with consent or opt-out options.
2. Data Minimization Gets Real
Under the proposed changes, businesses must limit the collection, use, retention, and sharing of personal data to what is strictly necessary for the stated purpose. This aligns with global privacy standards like the GDPR.
3. Enhanced Opt-Out Rights
Businesses would be required to offer more accessible and user-friendly methods for consumers to opt out of the sale or sharing of their data, including uniform opt-out mechanisms that apply across websites and services.
4. Security Safeguards and Audits
The draft regulations propose increased emphasis on technical and organizational safeguards—meaning your IT and legal teams will need to work together. Some companies may even be required to undergo privacy risk assessments.
Why This Matters for Business Owners
These rules are not optional if passed, they carry enforcement power through the California Privacy Protection Agency (CPPA). Fines can stack up quickly for non-compliance, and reputational damage can be even more costly. But more importantly, consumers are watching. Data privacy is no longer a niche concern—it’s a business imperative.
What Should Businesses Do Now?
Here are five proactive steps business owners should take:
- Audit your data practices – Know what data you collect, why, and where it goes.
- Update privacy policies – Ensure they reflect a commitment to data minimization and opt-out clarity.
- Eliminate dark patterns – Review user interfaces and consent forms with legal counsel.
- Monitor the CPPA’s updates – Stay ahead by subscribing to updates from the California Privacy Protection Agency.
- Consult a privacy compliance attorney – Proactive legal guidance today saves exponential costs tomorrow.
FAQ
– What is the California Privacy Rights Act (CPRA)?
The CPRA is an amendment to the CCPA that enhances consumer privacy rights and expands business obligations, including rules around data minimization and sensitive personal data.
– How do I know if my business is affected by these new rules?
If your business collects personal data from California residents and meets certain revenue or data processing thresholds, you are likely subject to these rules.
– What are “dark patterns” in privacy law?
Dark patterns are design tricks used to manipulate users into giving consent or making choices they might not otherwise make, such as hiding the opt-out button or using confusing language.
– How can I prepare for privacy risk assessments?
Work with legal and technical professionals to identify potential risks, document mitigation steps, and create internal compliance checklists.
Adapt Now or Risk Falling Behind
California’s privacy laws are evolving rapidly, and these proposed rules signal the state’s seriousness about data ethics. Smart business owners should see this not just as a compliance issue, but a branding opportunity. Show your clients you value their trust, and you’ll win it again and again.
If you’re unsure how these changes impact your business, schedule a consultation with Focus Law LA today. We help Southern California businesses stay compliant, reduce risk, and stay one step ahead of regulation.
