Home Data-Driven Thinking Should Ad Tech Panic Over The California Privacy Protection Act Now Or Later?

Should Ad Tech Panic Over The California Privacy Protection Act Now Or Later?

SHARE:

Data-Driven Thinking” is written by members of the media community and contains fresh ideas on the digital revolution in media.

Today’s column is written by Gary Kibel, a partner in the digital media, technology and privacy practice group at Davis & Gilbert.

When the EU’s General Data Protection Regulation (GDPR) was passed and enacted, US ad tech companies at least had the comfort of the Atlantic Ocean. Hungry EU regulators chomping at the bit to enforce the burdensome requirements and extract GDPR’s significant fines did not sit in our backyard ready to pounce.

That didn’t stop companies from enacting processes and controls to comply with the GDPR, even though there was not the immediate fear of a regulator’s knock on the door.

Things are about to change. Get ready for a big fist pounding on the door.

On June 28, the California Legislature hastily passed the California Consumer Privacy Act of 2018 (CCPA). The law, which takes effect in less than 1 ½ years, Jan. 1, 2020, ushers in a GDPR-light approach here in the United States. No more buffer. No more distant regulators unable or unwilling to reach US companies on their home turf. If they haven’t already done so, the time for ad tech companies to change the way they store and process data is fast approaching. 

The CCPA contains a long list of requirements that will take time for organizations to digest, analyze and apply to their unique services and operations. Some will be familiar to companies who have already put in place GDPR compliance processes, specifically, how to deal with requests from individuals to access their data, request deletion and exercise a right to retrieve and port their data.

If you’ve already solved these challenges in your GDPR compliance efforts, then good for you.  If you thought you could avoid these requirements by hiding from EU regulators in the US, then it’s time to come out of hiding and comply.

Like the GDPR, the CCPA contains a no-discrimination clause to ensure consumers are not denied access to a service merely because they will not share their data, though there are exceptions, including if the access is tightly linked to the value of the data, which the industry would hope would include ad-supported publisher sites.

Given that nearly every online business requires data to thrive, this exception will be important to analyze and use.

In some respects, the CCPA goes further than the GDPR. One instance is the definition of personal information. While it includes comparable broad language, it also defines personal information to include browsing and search history, as well as inferences drawn from certain data. Inferences? Oh boy.

A primary focus of the CCPA is to allow consumers to control the sale of their personal information. If a company is going to sell a consumer’s personal information, the company is required to give the consumer an opt-out. But what constitutes a sale that triggers this obligation? Will buying a consumer segment in a demand-side platform require an opt-out notice?

How this will all play out remains to be seen. The California Legislature will go through a technical corrections process and further clarify what will hopefully be coming from the left coast.

2019 promises to be the year of California, so get ready.

Follow Gary Kibel (@GaryKibel), Davis & Gilbert LLP (@dglaw) and AdExchanger (@adexchanger) on Twitter.

Tagged in:

Must Read

Hundreds of emails, depositions and other documents have been unsealed in the lead-up to the Google antitrust trial, providing a fascinating look at how Google talked about its own products when no one else was watching – especially tools to counteract the rise of header bidding.

Why PubMatic Ditched Its Prebid Web Wrapper, But Never Its SDK

Earlier this month, PubMatic shelved its Prebid integration wrapper, known as OpenWrap Web, and announced it would begin recommending Playwire as an offloading-onboarding partner for the 250-odd publishers that use its wrapper.

Gareth Glaser, Co-Founder & CEO, Gamera

Google’s Buyer Direct Could Beat Agentic Ad Tech At Its Own Game

Agentic AI shows promise for direct deals. But if Google has its way, Buyer Direct could put an end to all sorts of agentic direct sales opportunities while they’re still in the cradle.

How Warner Bros. Discovery Is Creating Value Out Of Dead Air With Pause Ads

Streaming publishers are banking on pause ads to bolster revenue with a more user-friendly ad experience. With programmatic standardization still pending, Warner Bros. Discovery is taking a stab at advancing the capabilities behind its own pause ad formats.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Peacock Hits Profitability As Comcast Prepares To Spin Off NBCU

Peacock hit what Comcast Co-CEO Mike Cavanagh called “meaningful profitability” for the first time in Q2, just as Comcast decided to let it leave the nest. 

Comic: It's Coming For You

Programmatic Platforms Champion Transparency, But Not If It Means Giving Activists Access

A DSP refused to give ad industry watchdog Check My Ads a seat on its platform, even after both parties cosigned a master service agreement, citing concerns about “protections” for “vendor and supply partners.”

Alphabet Smashes Ad Revenue Earnings Again – But Does It Still Care About Ads?

Investors didn’t bring up Google’s advertising business or ads in general once during the Q&A portion of Alphabet’s earnings report call on Wednesday.