Regulation Focus π¬
California AB 1824 (1)1798.120(2)
"A business to which another business transfers the personal information of a consumer as an asset that is part of a merger, acquisition, bankruptcy, or other transaction in which the transferee assumes control of all of, or part of, the transferor shall comply with a consumerβs direction to the transferor made pursuant to this subdivision."
As usual, California was the busiest state in the US on the matter of data privacy and protection, culminating in a rush of bills that were signed to end the legislative year. While several of those bills were vetoed by the Governor, five were signed into law.
One that was signed into law and set to take effect next year is Assembly Bill 1824, which on first glance might not seem meaningful, but is quite practical in nature.
AB 1824 makes it such that when companies merge or one company acquires another, consumer opt-out preferences are retained by the newly merged company.
For example, if you have opted-out of data processing and collective for Company A, when Company B buys that company, they still must respect your data rights and opt-out.
Given that mergers and acquisitions are becoming increasingly common over time, this is a law that is paying attention to the details. Another win? The companies acquiring other organizations are usually quite large, which puts another layer of data protections in place against Big Tech.
This is a common sense win for California and the kind of data legislation more consumers can easily get behind.