Assembly Bill No. 1824
CHAPTER 940

An act to amend Section 1798.120 of the Civil Code, relating to privacy.

[ Approved by Governor  September 29, 2024. Filed with Secretary of State  September 29, 2024. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 1824, Valencia. California Consumer Privacy Act of 2018: opt out right: mergers.
The California Consumer Privacy Act of 2018 (CCPA) grants a consumer various rights with respect to personal information that is collected or sold by a business, as defined, including the right to direct a business that sells or shares personal information about the consumer to third parties not to sell or share the consumer’s personal information, as specified. The California Privacy Rights Act of 2020, approved by the voters as Proposition 24 at the November 3, 2020, statewide general election, amended, added to, and reenacted the CCPA.
This bill would require 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 or part of the transferor to comply with a consumer’s opt out direction to the transferor.
This bill would declare that its provisions further the purposes and intent of the California Privacy Rights Act of 2020.
This bill would incorporate additional changes to Section 1798.120 of the Civil Code proposed by AB 1949 to be operative only if this bill and AB 1949 are enacted and this bill is enacted last.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 1798.120 of the Civil Code is amended to read:

1798.120.
 Consumers’ Right to Opt Out of Sale or Sharing of Personal Information
(a) (1) A consumer shall have the right, at any time, to direct a business that sells or shares personal information about the consumer to third parties not to sell or share the consumer’s personal information. This right may be referred to as the right to opt out of sale or sharing.
(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 consumer’s direction to the transferor made pursuant to this subdivision.
(b) A business that sells consumers’ personal information to, or shares it with, third parties shall provide notice to consumers, pursuant to subdivision (a) of Section 1798.135, that this information may be sold or shared and that consumers have the “right to opt out” of the sale or sharing of their personal information.
(c) Notwithstanding subdivision (a), a business shall not sell or share the personal information of consumers if the business has actual knowledge that the consumer is less than 16 years of age, unless the consumer, in the case of consumers at least 13 years of age and less than 16 years of age, or the consumer’s parent or guardian, in the case of consumers who are less than 13 years of age, has affirmatively authorized the sale or sharing of the consumer’s personal information. A business that willfully disregards the consumer’s age shall be deemed to have had actual knowledge of the consumer’s age.
(d) A business that has received direction from a consumer not to sell or share the consumer’s personal information or, in the case of a minor consumer’s personal information has not received consent to sell or share the minor consumer’s personal information, shall be prohibited, pursuant to paragraph (4) of subdivision (c) of Section 1798.135, from selling or sharing the consumer’s personal information after its receipt of the consumer’s direction, unless the consumer subsequently provides consent, for the sale or sharing of the consumer’s personal information.

SEC. 1.5.

 Section 1798.120 of the Civil Code is amended to read:

1798.120.
 Consumers’ Right to Opt Out of Sale or Sharing of Personal Information
(a) (1) A consumer shall have the right, at any time, to direct a business that sells or shares personal information about the consumer to third parties not to sell or share the consumer’s personal information. This right may be referred to as the right to opt out of sale or sharing.
(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 consumer’s direction to the transferor made pursuant to this subdivision.
(b) A business that sells consumers’ personal information to, or shares it with, third parties shall provide notice to consumers, pursuant to subdivision (a) of Section 1798.135, that this information may be sold or shared and that consumers have the “right to opt out” of the sale or sharing of their personal information.
(c) (1) Notwithstanding subdivision (a), a business shall not sell or share the personal information of a consumer if the business has actual knowledge that the consumer is less than 18 years of age, unless the consumer, in the case of a consumer at least 13 years of age and less than 18 years of age, or the consumer’s parent or guardian, in the case of a consumer less than 13 years of age, has affirmatively authorized the sale or sharing of the consumer’s personal information.
(2) A business that willfully disregards the consumer’s age shall be deemed to have had actual knowledge of the consumer’s age.
(d) A business that has received direction from a consumer not to sell or share the consumer’s personal information or, in the case of a minor consumer’s personal information has not received consent to sell or share the minor consumer’s personal information, shall be prohibited, pursuant to paragraph (4) of subdivision (c) of Section 1798.135, from selling or sharing the consumer’s personal information after its receipt of the consumer’s direction, unless the consumer subsequently provides consent, for the sale or sharing of the consumer’s personal information.

SEC. 2.

 The Legislature finds and declares that this act furthers the purposes and intent of the California Privacy Rights Act of 2020.

SEC. 3.

 Section 1.5 of this bill incorporates amendments to Section 1798.120 of the Civil Code proposed by both this bill and Assembly Bill 1949. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2025, (2) each bill amends Section 1798.120 of the Civil Code, and (3) this bill is enacted after Assembly Bill 1949, in which case Section 1 of this bill shall not become operative.