California Privacy Protection Agency Reveals First Draft of Automated Decision-Making Technology Regulations

Summary
On November 27, the California Privacy Protection Agency (CPPA) revealed its first draft on automated decision-making technology (ADMT) regulations in an effort to create new, protections for employees and consumers. The draft ADMT regulations would govern businesses and their usage of decision-making technology, aiming to establish protections against consumer profiling (including employees) and the use of AI. Employers would be required to notify applicants and employees that an employment decision was based on ADMT. Employees and applicants would also have a right to access information about the way in which ADMT was used. At the CPPA board meeting on December 8, 2023, the board determined that the proposed regulations were not ready for formal rulemaking and will return to subcommittee in order to incorporate feedback from board members. The board indicated that it may take several drafts before the regulations are ready for formal rulemaking.