At its March 8, 2024 meeting, the Board of the California Privacy Protection Agency (“CPPA”) moved, by a 3-2 vote, to advance proposed regulations addressing automated decision-making technology (“ADMT”) and risk assessments for the processing of personal information.  Notably, the Board’s vote only allows staff to begin paperwork preliminary to a rulemaking; it did not actually initiate the formal rulemaking process.  At the meeting, the CPPA Staff clarified that the Board will need to re-review the draft rules for ADMT, privacy risk assessments, and cyber audits and vote again to initiate the rulemaking process.  The CPPA’s General Counsel Philip Laird said he expects the Board will vote to begin the formal rulemaking process for all three topics in July 2024, at the earliest.  Once formal rulemaking begins, the Board has one year to finalize the regulations, per California’s Administrative Procedure Act.

The draft rules would require businesses to notify consumers prior to using ADMT, establish consumer opt out and access rights when businesses use ADMT, and require businesses to complete risk assessments when processing personal information in certain contexts, including when training ADMT or AI.  Board members disagreed about the appropriate scope of the regulations, including on the scope of the ADMT requirements.

Laird estimated that the Board has already received between two to three thousand pages of comments.  To receive additional input and promote public engagement, the CPPA plans to take the proposed regulations on a “roadshow” across California prior to the next meeting. You can find more information about the CPPA’s draft ADMT regulations in our blog post here, and a summary of proposals to regulate AI by state legislatures in the past year in our blog post here

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Photo of Lindsey Tonsager Lindsey Tonsager

Lindsey Tonsager co-chairs the firm’s global Data Privacy and Cybersecurity practice. She advises clients in their strategic and proactive engagement with the Federal Trade Commission, the U.S. Congress, the California Privacy Protection Agency, and state attorneys general on proposed changes to data protection…

Lindsey Tonsager co-chairs the firm’s global Data Privacy and Cybersecurity practice. She advises clients in their strategic and proactive engagement with the Federal Trade Commission, the U.S. Congress, the California Privacy Protection Agency, and state attorneys general on proposed changes to data protection laws, and regularly represents clients in responding to investigations and enforcement actions involving their privacy and information security practices.

Lindsey’s practice focuses on helping clients launch new products and services that implicate the laws governing the use of artificial intelligence, data processing for connected devices, biometrics, online advertising, endorsements and testimonials in advertising and social media, the collection of personal information from children and students online, e-mail marketing, disclosures of video viewing information, and new technologies.

Lindsey also assesses privacy and data security risks in complex corporate transactions where personal data is a critical asset or data processing risks are otherwise material. In light of a dynamic regulatory environment where new state, federal, and international data protection laws are always on the horizon and enforcement priorities are shifting, she focuses on designing risk-based, global privacy programs for clients that can keep pace with evolving legal requirements and efficiently leverage the clients’ existing privacy policies and practices. She conducts data protection assessments to benchmark against legal requirements and industry trends and proposes practical risk mitigation measures.

Photo of Libbie Canter Libbie Canter

Libbie Canter represents a wide variety of multinational companies on privacy, cyber security, and technology transaction issues, including helping clients with their most complex privacy challenges and the development of governance frameworks and processes to comply with global privacy laws. She routinely supports…

Libbie Canter represents a wide variety of multinational companies on privacy, cyber security, and technology transaction issues, including helping clients with their most complex privacy challenges and the development of governance frameworks and processes to comply with global privacy laws. She routinely supports clients on their efforts to launch new products and services involving emerging technologies, and she has assisted dozens of clients with their efforts to prepare for and comply with federal and state privacy laws, including the California Consumer Privacy Act and California Privacy Rights Act.

Libbie represents clients across industries, but she also has deep expertise in advising clients in highly-regulated sectors, including financial services and digital health companies. She counsels these companies — and their technology and advertising partners — on how to address legacy regulatory issues and the cutting edge issues that have emerged with industry innovations and data collaborations.

August Gweon

August Gweon counsels national and multinational companies on data privacy, cybersecurity, antitrust, and technology policy issues, including issues related to artificial intelligence and other emerging technologies. August leverages his experiences in AI and technology policy to help clients understand complex technology developments, risks…

August Gweon counsels national and multinational companies on data privacy, cybersecurity, antitrust, and technology policy issues, including issues related to artificial intelligence and other emerging technologies. August leverages his experiences in AI and technology policy to help clients understand complex technology developments, risks, and policy trends.

August regularly provides advice to clients for complying with federal, state, and global privacy and competition frameworks and AI regulations. He also assists clients in investigating compliance issues, preparing for federal and state privacy regulations like the California Privacy Rights Act, responding to government inquiries and investigations, and engaging in public policy discussions and rulemaking processes.

Photo of Sierra Stubbs Sierra Stubbs

Sierra Stubbs advises clients on a wide range of cybersecurity, data privacy, artificial intelligence, and public policy matters. As part of her data privacy and cybersecurity practice, Sierra helps clients navigate government and internal investigations, cybersecurity incident response, and compliance with U.S. state…

Sierra Stubbs advises clients on a wide range of cybersecurity, data privacy, artificial intelligence, and public policy matters. As part of her data privacy and cybersecurity practice, Sierra helps clients navigate government and internal investigations, cybersecurity incident response, and compliance with U.S. state and federal privacy and cybersecurity laws and standards. As part of her public policy practice, Sierra supports the development of clients’ public policy strategies and initiatives, including those related to intellectual property, innovation, and artificial intelligence.

Prior to joining Covington, Sierra served in the Office of the Chief of Staff to the U.S. Secretary of Commerce, most recently as a Special Advisor.