California passes nation's toughest online privacy law

Consumers will be granted sweeping new online privacy protections under a first of its kind California law signed by Gov. Jerry Brown Thursday. The new law is the nation's toughest and could serve as a model for other states.

"This is now the de facto law of the land," said James Steyer, founder of Common Sense Media and one of the bill's backers. "It's a win for every citizen in the United States."

Under the law which takes effect in January 2020, consumers will have the right to know what personal information companies are collecting and why and with which businesses it's being shared. They will also  have the right to direct companies to delete their information and not to sell it. And the law restricts sharing or selling the data of children younger than 16.

According to the new law, consumers who prohibit companies from selling their personal data must be given the same level of service but companies will be able to charge them higher fees. 

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