California’s Bold Moves in AI and Consumer Protection

California Bills Tackle AI, Consumer Safety, and Loud Commercials

California is at the forefront of Big Tech legislation, with state leaders rapidly signing several technology-related bills aimed at enhancing consumer safety and regulating the tech industry.

Transparency in Frontier Artificial Intelligence Act

The first major piece of legislation is the Transparency in Frontier Artificial Intelligence Act. This landmark law establishes robust safety standards for generative AI, requiring AI laboratories to disclose any potential harms associated with their technologies. The bill mandates that these companies outline their safety protocols as evidence that they are mitigating catastrophic risks associated with AI development.

This legislation is enforced by the California Office of Emergency Services and applies to companies meeting specific criteria, including those with substantial computing power dedicated to model training or those generating at least $500 million in annual revenue.

Governor Gavin Newsom emphasized that this legislation demonstrates that stronger safety regulations can coexist with AI innovation, countering arguments from some Big Tech leaders that such regulations stifle creativity and progress.

Commercial Volume Regulation

Following the AI act, Governor Newsom signed SB 576, a bill that prohibits commercials from exceeding the volume level set by viewers. This regulation is particularly significant as it extends the Commercial Advertisement Loudness Mitigation (CALM) Act, originally passed by Congress in 2010, which established volume limits for broadcast television.

This new bill also addresses commercial volume levels in streaming advertisements, which have previously been underregulated, ensuring that consumers enjoy a more consistent audio experience across platforms.

Data Privacy Enhancements

Most recently, the state approved AB 656, a law designed to enhance data privacy protections for social media users. This legislation requires social media companies to facilitate account cancellations and ensure that all personal data is deleted immediately upon request. This move aligns with the FTC’s new Click to Cancel rules, aimed at simplifying the process for customers to cancel subscriptions and delete their accounts.

Governor Newsom’s Leadership in Tech Regulation

Governor Newsom has positioned California as a leader in advanced tech regulations, focusing on child safety laws and consumer protections. However, his administration also reflects a complex relationship with Big Tech, having previously vetoed a significant bill that would have held AI companies liable for damages caused by their technologies.

As California continues to develop these regulations, it sets a precedent that could influence national standards in technological safety and consumer rights.

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