NO to SB 362

SB 362: Don’t Destroy California’s Data-Driven Economy

California’s Digital Economy Depends on Data

Data fuels California’s economy and delivers benefits to its residents every day. In addition to the millions of jobs created by California’s data and technology industries, nearly every business in the state – from global manufacturing titans to corner grocery stores – depends on the data marketplace today. Those same data providers also help drive the vital work of non-profits, government agencies, and academic institutions in ways that benefit all California residents. For small and start-up businesses, third-party data sources are the lifeblood of their growth and ability to compete.

SB 362 is unnecessary. It is duplicative of rights already afforded Californians. Furthermore, cost estimates for establishing and maintaining this new government program grossly underestimate the actual costs and will bloat the growing state deficit.

Complicated Data Systems Require Nuanced Changes, Not a Sledgehammer

SB 362 would cause tremendous damage across California’s data-driven economy by using a blunt force approach on this complicated and vital system. By proposing a new and untested mechanism to delete consumer data across hundreds of companies, SB 362 would choke off data used for good by companies and institutions across the state:

  • Depriving small and mid-size California businesses of the ability to reach new customers,
  • Starving non-profits of the funding they get by finding potential supporters,
  • Eliminating the tools used by cybersecurity firms to fight fraud,
  • Blocking law enforcement agencies from using data to investigate crimes,
  • Erasing the data sets needed by academics to conduct research, and
  • Preventing government agencies from using data to evaluate and improve public services.

The Unintended Consequences from SB 362 Would Be Severe

Hundreds of data providers – also known as data brokers – offer a tremendous range of beneficial services to companies, non-profits, government agencies, and academic institutions. If a significant number of California residents are deleted from those datasets, the data will become deeply corrupted and increasingly incomplete, inaccurate, and unusable. That loss of accurate data in the market would hamper marketing efforts for California businesses, reduce competition, hurt non-profits, curtail quality research, and create new advantages for giant companies that have built closed data systems. California families would also see an immediate and costly impact in higher prices, less choice, closed businesses, more digital fraud, and fewer ad-funded services.

SB 362 Needs More Time, Consideration, and Data-Driven Input

Rather than rushing forward with a bill that could cripple California’s data-driven economy and adversely impact nearly every institution in the state, legislators should slow this process down and work with companies, non-profits, law enforcement bodies, educational institutions, and government agencies to address their concerns, minimize negative impacts, and ensure any changes have the intended effect.

Learn more about the bill’s harmful effects on California consumers and businesses here.

Contact Our Legislators to Tell Them to Oppose SB 362

Please contact Senator Josh Becker, the bill’s author, to voice your opposition to this harmful legislation. Senator Becker’s office can be reached via phone at 916-651-4013 or you can send an email here.

In addition, the bill will soon be scheduled for a hearing in the Assembly Appropriations Committee – the bill’s last stop before going to the Assembly floor for a final vote. It is critical that members of the Assembly Appropriations Committee hear about the damaging impact of this bill. Please reach out to committee members using the contact information available below.

Committee Member District Phone Email
Chris Holden, Chair
Dem-41 (Pasadena)
916-319-2041
Megan Dahle, Vice Chair
Rep-01 (Redding)
916-319-2001
Isaac Bryan
Dem-55 (Culver City)
916-319-2055
Lisa Calderon
Dem-56 (City of Industry)
916-319-2056
Wendy Carrillo
Dem-52 (Los Angeles)
916-319-2052
Diane Dixon
Rep-72 (Newport Beach)
916-319-2072
Mike Fong
Dem-49 (Monterey Park)
916-319-2049
Gregg Hart
Dem-37 (Santa Barbara)
916-319-2037
Josh Lowenthal
Dem-69 (Long Beach)
916-319-2069
Devon Mathis
Rep-33 (Visalia)
916-319-2033
Diane Papan
Dem-21 (San Mateo)
916-319-2021
Gail Pellerin
Dem-28 (Santa Cruz)
916-319-2028
Kate A. Sanchez
Rep-71 (Rancho Santa Margarita)
916-319-2071
Esmeralda Soria
Dem-27 (Merced)
916-319-2027
Akilah Weber, M.D.
Dem-79 (La Mesa)
916-319-2079
Lori Wilson
Dem-11 (Suisun City)
916-319-2011

10 REASONS SB 362 WILL HARM CALIFORNIA

Data brokers help protect consumers as they interact online in ways consumers are unaware of, creating a safer digital economy behind the scenes. Without the data the bill will help remove from these services with its deletion requirements, fraudsters will have an easier time to commit fraud and harm consumers.

Data brokers provide services to the California government to help administer public benefits and to police fraud in the system. The lack of data caused by the bill’s deletion provisions will hamper the ability of government to serve their constituents.

Political campaigns rely on data broker services to connect with voters and fundraise. The bill’s deletion provisions would result in the loss of those services for California campaigns.

Hospital systems and health care providers that rely on data brokers to identify patients across health systems would lose the ability to resolve patient identity due to the deletion requirements of the bill, lowering the quality of care and driving up costs for health care providers and patients.

The bill’s universal deletion mechanism will remove the fuel that powers the ad-supported products and services that consumers rely on in their daily lives.

These entities depend on data brokers and their services to identify and connect with donors and volunteers outside their existing network. That data will no longer be available because of the bill’s deletion provisions.

The hundreds of companies on the data broker registry use data for very different purposes, often in ways consumes are unaware of. The bill’s blunt deletion instrument fails to inform consumers about the benefits companies provide to them based on data and will cause consumers to unintentionally remove their ability to access services they use every day and expose them to higher risks of fraud and identity theft.

The data broker-provided services that allow these entities to compete, such as marketing and advertising, will disappear due to the bill’s deletion requirements.

By limiting the ability of competitors to effectively enter the marketplace and connect with consumers, due to a lack of data in the marketplace, the bill would benefit “big tech” at the cost of the rest of the economy.

The bill would allow third parties, like pay-for-privacy services and other intermediaries, to send mass deletion requests to data brokers. This would give them undue power to control how their competitors can access data services and offer competing products.