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California Considers Restricting Broad Swath of Content Personalization and Online Advertising Activities
Friday, March 8, 2024

On March 8, 2024, the California Privacy Protection Agency (“CPPA” or “Agency”) Board (“Board”) will consider draft regulations that set forth how automated decisionmaking technology (“ADMT”) and profiling will be regulated under the California Consumer Privacy Act (“CCPA”). The proposal includes the regulation of a new concept of “behavioral advertising” that is deemed “extensive profiling” and thus a form of “automated decisionmaking” that has a significant impact on consumers, justifying both a complex, advanced notice and ability for consumers to opt-out. These would overlap with similar notice and opt-out requirements already in place for “sharing” of personal information for “cross-context behavioral advertising”, which involves use of personal information from more than one party (e.g., cross-site/app/service browsing information, or combinations of first- and third-party data). The proposal would make cross-context behavioral advertising a subset of the newly defined behavioral advertising, and bring within the scope of these proposed regulations any practice that involves the use of personal information, even exclusively first-party data, for advertising or marketing communications (with limited exceptions, such as where the communication is based solely on a current interaction). So, presenting a contextual ad or other content about cigars when a site user is reading an article about cigars would seemingly not be behavioral advertising, but remembering that the user is interested in cigars, to later recommend cigar-related products (think e-commerce site recommendations), would be. 

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