The CCPA, 'Inferences Drawn,' and Federal Preemption
18 Pages Posted: 19 Sep 2022 Last revised: 5 Dec 2022
Date Written: September 15, 2022
In 2018 California passed an extensive data privacy law. One of its most significant features was the inclusion of “inferences drawn” within its definition of “personal information.” The law was significantly strengthened in 2020 with the expansion of rights for California consumers, new obligations on businesses, including the incorporation of GDPR-like principles of data minimization, purpose limitation, and storage limitation, and the creation of an independent agency to enforce these laws. In 2022 the Attorney General of California issued an Opinion that provided for an extremely broad interpretation of “inferences drawn.” Thereafter the American Data Privacy Protection Act was introduced in Congress. It does not provide nearly the protection for inferences that California law does, but it threatens to preempt almost all of it. This article argues that, given the importance of California being able to finally regulate inferences drawn, any federal bill must either provide similar protection, exclude California law from preemption, or be opposed.
Keywords: privacy, data protection, inferences, predictive analytics
JEL Classification: K29, K39
Suggested Citation: Suggested Citation