Bill to Ban Data Sale to Third Parties Vetoed in California - Articles

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Bill to Ban Data Sale to Third Parties Vetoed in California

Bill to Ban Data Sale to Third Parties Vetoed in California

The governor vetoed California A.B. 1542, a bill opposed by the Insights Association that would have prohibited most companies from selling sensitive personal information to a third party. States are cracking down on data sharing, but the governor worried about “unintended consequences if consumers are removed entirely from the decision process."

In his September 27, 2026 veto statement, Governor Gavin Newsom (D) said, "While I support the author's goal of protecting the sensitive personal information of Californians, a categorical ban on sharing that information is a step too far. Under state law, companies are required to provide California consumers with the option to limit the sharing of such information, and I worry there may be unintended consequences if consumers are removed entirely from the decision process."

The Insights Association opposed California A.B. 1542 from early on in the legislative process with a California Chamber of Commerce coalition, and analyzed it for IA members in May.

"California A.B. 1542 would have abandoned the framework of consumer control that the California Consumer Privacy Act (CCPA) was designed to advance," commented Howard Fienberg, Senior VP Advocacy for the Insights Association. “It would have particularly hurt independent audience measurement of advertising and other content, undermining the accuracy of media and advertising valuation.”

Still, Fienberg clarified, “it is not as if the veto of A.B. 1542 means that California laws and regulations allow for free-wheeling data sharing. Consumers still have the right to opt out of sale of their personal information; data collection and use generally still needs to be either with consumer consent or be necessary and proportionate to its original purpose, among other requirements and restrictions.”

The Insights Association has extensive compliance information (only for IA members) on CCPA and other state privacy laws, and much more on many other compliance topics.

IA company and department members gather for the next off-the-record General Counsel and Privacy Officer forum on October 23.

This information is not intended and should not be construed as or substituted for legal advice. It is provided for informational purposes only. It is advisable to consult with private counsel on the precise scope and interpretation of any laws/regulation/legislation and their impact on your particular business.

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