California passes bills to ban sensitive data sales and AI emotion surveillance

The California Legislature has passed two significant pieces of legislation aimed at enhancing privacy and regulating artificial intelligence, both of which now await Governor Newsom’s signature.

Assembly Bill 1542, supported by Consumer Reports, seeks to amend the California Consumer Privacy Act to prohibit companies from selling sensitive personal data. Proponents argue the ban is necessary to prevent harms such as identity theft, stalking, and price discrimination. If signed, California would join several other states, including Connecticut and Virginia, in restricting the sale of certain sensitive information.

Additionally, Assembly Bill 1883 has passed, which would prohibit employers from using AI tools to surveil an employee’s emotional state or collect “neural data.” Neural data is defined as information generated by measuring the activity of an employee’s central or peripheral nervous system. While the bill allows for surveillance tools used to ensure safety and exempts certain national security and defense operations, violators could face penalties of $500 per violation.