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.