Cybersecurity Policy Report, Measure to Strengthen California Privacy Law Sent to Governor, (Sep 10, 2026)
A bill that would close a loophole in the California Consumer Privacy Act (CCPA) by prohibiting businesses from selling or sharing sensitive personal information with third parties has been sent to Gov. Gavin Newsom (D.) for his signature.
“Californians’ most sensitive personal information should never be for sale. This bill closes a major privacy loophole and puts people—not data brokers—first,” said bill sponsor Assembly member Chris Ward (D.). “Now, we’re calling on Governor Newsom to sign it into law.”
AB 1542 specifically would prohibit businesses, service providers, or contractors from selling or sharing sensitive personal information with third parties except as otherwise specified by law. It would require businesses to inform consumers at or before the point of collection about the categories and purposes of both personal and sensitive personal information being collected, as well as the intended retention period.
The bill (A.B. 1542, Reg Sess.) would further require businesses to “ensure that any collection, use, retention, or sharing of personal information is reasonably necessary and proportionate to the disclosed purposes, and they must enter into agreements with third parties, service providers, or contractors to ensure compliance with privacy obligations.”
The bill also would clarify that consumers had the right to limit the use of their sensitive personal information to only those uses necessary for providing requested goods or services, and businesses would have to provide clear notice if sensitive information will be used for additional purposes.
News: StateLegislation DataPrivacy CCPA