California Governor Rejects Legislation Requiring Opt-Out Option for Sale of User Data

California Governor Rejects Legislation Requiring Opt-Out Option for Sale of User Data

California Governor Rejects Legislation Requiring Opt-Out Option for Sale of User Data


## California Governor Gavin Newsom Rejects Privacy Bill Requiring Opt-Out Signals in Browsers and Mobile Operating Systems

In a pivotal choice for consumer privacy supporters and the technological sector, California Governor Gavin Newsom has rejected a bill that would have necessitated web browsers and mobile operating systems to enable consumers to send opt-out preference signals. Such signals would have empowered users to restrict businesses’ use of their personal and sensitive information, augmenting the state’s current privacy regulations.

### Summary of the Rejected Bill

The legislation, referred to as [AB 3048](https://leginfo.legislature.ca.gov/faces/billHistoryClient.xhtml?bill_id=202320240AB3048), was approved by the California State Legislature in September 2024. It aimed to enhance consumer privacy safeguards by requiring that web browsers and mobile operating systems incorporate a feature that allows users to send a universal opt-out signal. This signal would indicate the user’s intention to opt out of the sale or sharing of their personal information and restrict the use of sensitive data.

Had it been enacted, the bill would have prohibited businesses from providing browsers or mobile operating systems without such an opt-out functionality. This would have imposed a considerable burden on tech giants like Google, Apple, and Microsoft, whose browsers—Chrome, Safari, and Edge—dominate the market.

### Newsom’s Justification for the Rejection

In his [veto message](https://www.gov.ca.gov/wp-content/uploads/2024/09/AB-3048-Veto-Message.pdf) to the Legislature, Governor Newsom voiced his support for bolstering consumer privacy but raised concerns regarding the bill’s effects on operating system developers. He acknowledged that while a majority of internet browsers currently provide some form of opt-out capability or allow users to add plug-ins for this purpose, there is no significant mobile operating system that presently offers such an option.

“I am concerned, however, about imposing a requirement on operating system (OS) developers at this moment,” Newsom wrote. “In order to maintain the continued functionality of mobile devices, it is preferable for design considerations to be resolved by developers themselves rather than by regulators.”

Newsom also noted that he had previously enacted legislation mandating the California Privacy Protection Agency to establish a process for consumers to request the deletion of their personal data from data brokers. However, he contended that enforcing opt-out signals at the operating system level could be untimely and counterproductive.

### Industry Pressure and Criticism

The rejection has drawn backlash from privacy advocates, many of whom feel that the tech sector significantly influenced the governor’s choice. Reports from [Bloomberg](https://news.bloomberglaw.com/ip-law/newsom-vetoes-california-privacy-opt-out-feature-for-browsers) and [Politico](https://subscriber.politicopro.com/article/2024/09/google-enlists-californias-small-businesses-to-help-veto-a-landmark-data-privacy-bill-00179177) indicate that Google, in particular, lobbied extensively against the bill. Google, which recently [abandoned intentions](https://arstechnica.com/gadgets/2024/07/google-will-not-disable-tracking-cookies-in-chrome-after-years-of-trying/) to turn off tracking cookies by default in its Chrome browser, allegedly urged Newsom to veto the proposal.

Justin Kloczko, a tech and privacy advocate for Consumer Watchdog, expressed dissatisfaction with the veto, stating, “It’s concerning the influence that companies like Google seem to hold over the governor’s office.” Kloczko also highlighted that the majority of popular browsers—Google Chrome, Apple Safari, and Microsoft Edge—lack a universal opt-out feature, despite responsible for nearly 90% of the browser market.

Consumer Reports Policy Analyst Matt Schwartz reiterated these concerns, asserting that the veto undermines consumer privacy rights. “The industry worked vigorously to kill this bill, as it empowered Californians to better safeguard their privacy, jeopardizing the commercial surveillance business model of these tech firms,” Schwartz commented in a [statement](https://advocacy.consumerreports.org/press_release/california-governor-vetoes-landmark-bill-for-privacy-rights/).

### The Global Privacy Control (GPC) and Its Significance

One of the primary instruments that privacy advocates wished to see more broadly applied through the bill is the [Global Privacy Control (GPC)](https://globalprivacycontrol.org/faq), a signal that enables users to opt out of data sales and tracking. GPC is currently accessible on browsers such as Firefox, Brave, and DuckDuckGo, but not on Chrome, Edge, or Safari.

GPC was created to remedy the deficiencies of the earlier “Do Not Track” (DNT) signal, which failed to achieve widespread acceptance due to its inability to clearly express users’ intent to opt out of data sales. The California Attorney General has determined that businesses must respect G