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CPPA releases latest draft of automated decision-making technology regulation

State Issues Privacy Agency Rule-Making & Guidance California CPPA Artificial Intelligence

State Issues

The California Privacy Protection Agency (CPPA) released an updated draft of its proposed enforcement regulations for automated decisionmaking technology in connection with its March 8 board meeting. The draft regulations included new definitions, including “automated decisionmaking technology” which means “any technology that processes personal information and uses computation to execute a decision, replace human decisionmaking, or substantially facilitate human decisionmaking,” which expands its scope from its previous September update (covered by InfoBytes here).

Among other things, the draft regulations would require businesses that use automated decisionmaking technology to provide consumers with a “Pre-use Notice” to inform consumers on (i) the business’s use of the technology; (ii) their right to opt-out of the business’s use of the automated decisionmaking technology and how they can submit such a request (unless exempt); (iii) a description of their right to access information; and (iv) a description of how the automated decisionmaking technology works, including its intended content and recommendations and how the business plans to use the output. The draft regulations detailed further requirements for the opt-out process.

The draft regulations also included a new article, entitled “risk assessments,” which provided requirements as to when a business must conduct certain assessments and requirements that process personal information to train automated decisionmaking technology or artificial intelligence. Under the proposed regulations, every business which processes consumers’ personal information may present significant risk to consumers’ privacy and must conduct a risk assessment before initiating that processing. If a business previously conducted a risk assessment for a processing activity in compliance with the article and submitted an abridged risk assessment to the CPPA, and there were no changes, the business is not required to submit an updated risk assessment. The business must, however, submit a certification of compliance to the CPPA.

The CPPA has not yet started the formal rulemaking process for these regulations and the drafts are provided to facilitate board discussion and public participation, and are subject to change.