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September 2022: California Governor Signs Bill Protecting Children’s Online Data and Privacy

27 Sep


Update Applicable to:
All employers that provide online services or products in the state of California.

What happened?
In our previous communication, we notified you that Assembly Bill 2273 (AB 2273) was sent to Governor Newsom and is awaiting signature. This is an update to that communication.

What are the details?
On September 15, 2022, Governor Newsom signed AB 2273 into law, which increases data privacy and protection standards by requiring California businesses to make these changes below:

  • Default privacy settings: Companies must configure default privacy settings to the highest possible level of privacy and provide private information and other policies that children can understand prominently.
  • No use of minor’s personal information: Companies will be banned from using children’s personal information “for any reason other than a reason for which the personal information was collected unless the business can demonstrate a compelling reason that use of the personal information is in the best interests of children,” according to the legislation.
  • Attorney General’s authority: AB 2273 permits the Attorney General to seek an injunction or civil penalty against companies that violate the bill. According to the bill, negligent violations could result in a penalty of up to $2,500 per affected child, and intentional violations could result in a penalty of up to $7,500 per affected child. Currently, the bill does not provide a private right of action.

This bill goes into effect on July 1, 2024.

For more information, please see the links below:

Assembly Bill 2273 (AB 2273)

Previous Vensure Article (9/14/2022)

Office of Governor Gavin Newsom Announcement

What do employers need to do?
Employers should review the links provided above and make adjustments to their data privacy policies to comply with the law come July 1, 2024.

Need help understanding how changes to employment laws will affect your business?

Learn more about how Vensure's California PEO services can help you navigate complex employment laws and keep your business compliant.

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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