TL;DR: : California's SB 361, effective January 1, 2026, imposes stricter requirements on data brokers, enhancing consumer data protections. Trial attorneys must understand these changes to effectively counsel clients and navigate potential litigation.
Understanding SB 361
On October 8, 2025, Governor Gavin Newsom signed SB 361 into law, amending California's existing data broker registration statute. This legislation expands obligations for data brokers, aiming to bolster consumer data protections. The law took effect on January 1, 2026, with a registration deadline for data brokers set for January 31, 2026. (casesofnote.org)
Key Provisions of SB 361
SB 361 introduces several critical changes:
Enhanced Registration Requirements: Data brokers must provide more detailed information during registration, including data collection practices and the types of data collected.
Consumer Rights Expansion: Consumers gain greater control over their personal data, including the right to opt out of data sales and request deletion of their data.
Increased Penalties: Non-compliance with the new regulations can result in substantial fines and legal action.
Implications for Trial Attorneys
The enactment of SB 361 has several practical implications for trial attorneys:
Advising Data Broker Clients: Attorneys representing data brokers must ensure their clients understand and comply with the new registration and data handling requirements to avoid legal repercussions.
Consumer Protection Litigation: With enhanced consumer rights, there may be an uptick in litigation related to data privacy violations. Attorneys should be prepared to represent clients in such cases, whether defending data brokers or advocating for consumers.
Compliance Counseling: Businesses that collect consumer data need guidance to align their practices with SB 361. Attorneys can offer compliance counseling to mitigate risks and ensure adherence to the law.
Action Steps for Attorneys
To effectively navigate the changes brought by SB 361, trial attorneys should:
Stay Informed: Regularly review updates and guidance from the California Attorney General's office regarding data broker regulations.
Educate Clients: Conduct workshops or provide resources to clients about their obligations under SB 361.
Develop Compliance Programs: Assist clients in creating or updating data privacy policies and compliance programs to meet the new standards.
Monitor Enforcement Trends: Keep an eye on enforcement actions and legal precedents to anticipate potential challenges and advise clients accordingly.
Conclusion
California's SB 361 represents a significant shift in data privacy law, emphasizing consumer protection and accountability for data brokers. Trial attorneys play a crucial role in guiding clients through these changes, ensuring compliance, and addressing any legal challenges that arise. By staying informed and proactive, attorneys can effectively navigate this evolving legal landscape.