ACTION ALERT: Stand Against Harmful CPPA Draft Rules

Stand Against Harmful CPPA Draft Rules - Speak Out at the January 14th Public Comment Hearing

BizFed LA will be submitting a coalition letter in partnership with the Silicon Valley Leadership Group to the California Privacy Protection Agency (CPPA) opposing their draft rules on Automated Decision-Making Technology (ADMT), which would significantly negatively impact the business community, as we have discussed throughout 2024. If you are available, please provide public comment during the 1.14 hearing. Additionally, we would greatly appreciate your support by adding your organization’s logo to this letter. If you’d like to sign on, please reply with your logo by this Friday, January 10th. 

WHAT IT DOES: The CPPA's draft rules on ADMT seek to regulate AI by allowing consumers to opt out of having their data used for AI training, which could hinder innovation and increase bias rather than enhance privacy protections and creates an inability to monetize website traffic. The rules also impose extensive cybersecurity and risk assessment requirements that go beyond existing state privacy laws, creating significant compliance and financial burdens for small businesses.

WHAT IT CHANGES: The CPPA's ADMT draft rules introduce three major changes to California privacy laws: (1) they grant consumers the right to opt out of automated decision-making, including AI model training, which could limit innovation and increase bias risks; (2) they impose extensive risk assessment requirements on businesses, mandating detailed evaluations of AI and data processing activities beyond existing privacy regulations; and (3) they establish stringent and costly cybersecurity audit mandates, requiring board-level oversight and compliance measures that exceed current government standards.

WHY IT MATTERS: The CPPA’s own Impact Assessment, highlights projected negative macroeconomic impacts over the next 12 years, it states: a staggering $31 billion in direct costs to businesses, a $50 billion shortfall in investments, a $27B loss in Gross State Product,  and the loss of 98,000 jobs just in California, 66% of them are small businesses, many of which may not be able to afford the costs to comply.