Fundraisers Racing To Challenge California Opt-Out Bill
A nonprofit advocacy organization is not waiting for a bill being considered by the California legislature to become law.
The Consumer Data Industry Association (CDIA), Washington, D.C., has launched a public awareness campaign designed to alert consumers about the ill effects of being able to easily remove their information from the files of data brokers.
The effort is in response to California Senate Bill S.B. 362, which requires any organization that falls under its definition of a data broker to register with the state, and for the creation of a one-stop portal that would provide consumers with access to all information being held on them. Through that portal, consumers would also have easy means of removing their information from the data repositories.
“This bill would cause a massive ripple of unintended consequences on people’s everyday lives and California’s entire economy,” CDIA President & CEO Dan Smith said via a statement. “It would undermine consumer fraud protections, curb small businesses’ ability to compete, hurt mission-driven nonprofits, and empower third-party ‘pay to delete’ services at consumers’ expense.”
S.B. 362 would eliminate some of the protection nonprofits were given in the California Consumer Privacy Act of 2018. While that Act similarly enabled consumers to review, correct and opt out of having their information online, it contained exceptions for nonprofits that generate under $25 million in annual revenue. Additionally, under current law consumers seeking to correct or remove their information are required to amend or delete it with each data repository owner.
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The CDIA’s messaging covers a wide swath of potential impacts which include: impeding small businesses’ abilities to attract new customers; promoting larger companies over small, including minority- and women-owned business; and empowering third-party organizations to manipulate consumers paying to remove their information without the consumers understanding the alleged hazards of doing so.
Nonprofits would be hit by the bill’s provisions. Within a list of 15 potentially detrimental effects of the bill, CDIA officials state: “The bill will dramatically reduce funding for nonprofits and charitable organizations in California. Charitable organizations depend on data and lists to identify and reach new donors, volunteers, and other advocates interested in their missions. Without that data, California charities of every type – from animal welfare to civil rights, the environment, education, veterans, and health care – will suffer.”
The bill passed the state Senate in late August and is being reviewed by the state Assembly. As of September 7 it had been amended twice in the Assembly and ordered to a third reading.
The CDIA’s effort, which was launched on September 5, includes billboard trucks circulating through Sacramento, online ads and the launch of an information and advocacy website.
The effort launch was followed by a September 6 letter urging rejection of the legislation, which was sent to state Senator Josh Becker, who introduced the bill, Chris R. Holden, chair of the Assembly Appropriations Committee, Megan Dahle, vice chair of the Assembly Appropriations Committee and other members of the California Assembly. The letter was signed by more than 20 companies, organizations and trade associations.
Support for the bill appears to fall along party lines. The website includes contact information for 38 Assembly members, all of whom are Democrats. The full 80-person Assembly is controlled by Democrats, who have a 62-18 advantage.
This article was originally published at The NonProfit Times.
