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Newly-Passed California Law Depicts the Growing Dissatisfaction with Tech Firms

The tech industry is now losing its admiration after numerous scandals related to data privacy such as the Cambridge Analytica scandal in addition to fake news in different social media platforms. Thus, concerns by consumers and lawmakers are increasing day by day considering the significance of tech companies in almost all aspects of their consumers’ lives.

The latest evidence of the growing concerns was the undisputed passing of the California Consumer Privacy Act of 2018. The approval of the legislation was in late June by the state senate in California and later assented by Governor Jerry brown.

The newly-passes law provides consumers in California the opportunity to question any information asked of them. They can also reject the sale of that information. Any tech company that fails to adhere to the regulations stipulated in the act will have to face hefty penalties.

Interestingly, California is the first American state to pass legislation that focusses on data privacy yet some of the top tech firms are located in the state. California has also received numerous benefits from the financial success of these companies. The question is whether California lawmakers are willing to be at loggerheads with tech firms that contribute tremendously to its economy.

The latest scandals in the tech industry focusing on data privacy and security have disappointed most consumers who are now pushing for better control measures on their personal data. They are also demanding for responsibility and accountability from tech companies who collect data.

The scandals emanate from the fact that most consumers were not aware of the operations of the tech companies and what they did with the data they collected from them. Since consumers are unhappy, it will not be surprising to see more legislative bodies at the state and national level take charge of data privacy matters promptly. By the end of the year, the world could witness a more regulated operation environment for tech firms.

However, the effects of these regulatory measures are not clear for the tech companies but they will not favor most of them. Additionally, many of these firms have had to comply with European Union’s DDPR guidelines on data privacy which are more comprehensive than the California law.

Moreover, the new law could be disadvantageous for American tech companies because California citizens form a huge customer base for services relates to the internet. These consumers are under the protection of the law. However, the same consumers feel that this is a step in the right direction.