On Thursday, California Gov. Jerry Brown signed what looks like the boldest data privacy bill in the country — and the reverberations could shake retailers in the West Coast and beyond. The goal is to safeguard consumer data, which has become a hot-button issue in the era of Target and Equifax hacks and misuse of Facebook user data. Prescriptively, the statute aims to regulate companies’ privacy practices and give consumers the final say over how their information is used, though the policy takes on a somewhat transactional tone. Customers who let companies sell their data could be compensated in the form of discounts, while those who opt out could be charged, based on what the business would have made. The legislation covers California residents only, but it begs comparisons to the European Union’s General Data Protection Regulation, which took effect in May. Both measures demand that tech providers, retail companies and others that deal in user data do more to protect it, especially when it comes to security, privacy and permissions. But there are differences, and the nuances matter. Under both, the consumer has a right to request that businesses delete any personal information, noted privacy and data security attorney Dave Stauss. But with
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