California adopts the first online privacy law in the nation, restricting the data-collection practices of technology companies. This was the bill designed to circumvent the initiative that was headed for the ballot. Considered a compromise bill, the law still imposes significant obligations on tech companies. The California Consumer Privacy Act, signed into law Thursday, June 28, 2018, requires tech giants to disclose the kind of data they collect about consumers and allows Web users to opt out of having their information sold to third parties, including advertisers. The new privacy rules, which take effect in 2020, apply only to residents in the Golden State. But they could force tech companies to change their business practices nationwide, rather than maintaining two systems — one in California, and another for everywhere else.
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