California is rewriting the rules of the internet. Businesses are scrambling to keep up
LA TimesA sweeping new law that aims to rewrite the rules of the internet in California is set to go into effect on Jan. 1. In the data economy, users’ personal information can be used in lightning-fast transactions, like the real-time auction that goes on behind each online ad, and stored in databases for decades. Sometimes, companies sell personal information — someone’s location, age or even name — without any contact information, or easy ways to verify that individual’s identity. “As such, there is no particular value of data allocated on any existing balance sheet.” The most wide-ranging effects of the new law fall on the online ad economy and the businesses — including tech giants such as Facebook and Google and media companies such as the Los Angeles Times — that rely on it. The privacy law doesn’t break the real-time bidding chain of data transfer and ad display — and Mactaggart has been clear that that was never the intent — but it does allow users to opt out of the second phase of the process, in which user data are stored and packaged to be sold in the future.