Internet Privacy Bill Endangers Small Business Owners

Date: May 02, 2019


A recently proposed piece of legislation in California would open the floodgates for lawsuits against small business owners who may have violated the state’s Consumer Privacy Act, according to the Fox and Hounds Daily.

Senate Bill 561 would eliminate the 30-day grace period currently in effect that allows small business owners to correct their violation before a lawsuit can be filed. The bill would also prevent them from seeking guidance from the attorney general on how to comply with California’s Consumer Privacy Act.

NFIB’s California State Director John Kabateck, who wrote a column detailing the impact the bill would have on small business owners in the state, believes the legislation would put small business owners at risk and make compliance even more difficult.

The point of the CCPA is to protect consumers’ personal information. However, the limitations the act places on advertising puts small business owners at a disadvantage. Compared to larger companies, they have fewer resources which means they need targeted advertising to reach customers. Kabateck supports Senate Bill 753 which he says allows owners to use consumer information to the extent needed for advertising without violating their privacy.

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