Article Summary:
- California law requires businesses using digital advertising or tracking tools to provide a clear opt-out option.
- The CCPA and its amendments mandate a “Do Not Sell or Share My Personal Information” link for compliance.
- Federal laws like the Gramm-Leach-Bliley Act and the CAN-SPAM Act also establish opt-out rights in specific contexts.
- Creating an opt-out process helps protect your business from penalties and legal challenges while building trust with customers.
Any business operating in today’s digital world needs to be cognizant of the way it uses and manages private information. We often get questions from California business owners about customer information and the legalities that come with it. Many rely on digital advertising tools like Google Ads and tracking software to reach new clients. These tools can fuel growth, but they also collect personal data in ways that fall under strict privacy laws. If your company uses them, you need to know where the legal boundaries are and what kind of opt-out option the law requires.
How California Looks at Consumer Privacy
California, known for a strict business landscape that prioritizes the people, takes a strong position on the rights of consumers to control their own personal data. The California Consumer Privacy Act (CCPA), along with its later amendments, requires companies to give people a meaningful choice about whether their information is shared. That includes data collected through advertising trackers and similar tools.
Section 1798.120 specifically gives consumers the right to tell a business not to sell or share their information with outside parties. Because digital tracking involves that very kind of sharing, the law applies to businesses using those systems.
Section 1798.135 makes the requirement even clearer. It says that companies must post a “Do Not Sell or Share My Personal Information” link on their websites. That link must connect to an actual process where users can stop the sharing of their personal information. Without it, a business exposes itself to compliance problems, penalties, and potential litigation.
What Federal Data Privacy and Protection Laws Apply?
On the federal level, several laws influence how businesses are expected to treat consumer data.
One example is U.S. Code § 6802, which applies to financial institutions. It requires these institutions to give customers a way to opt out before their private information is disclosed to unrelated third parties. While this law was designed for banks and similar institutions, the standard it sets, giving people control over their information, has influenced how other industries handle data privacy.
There’s also Section 7704 of the CAN-SPAM Act. This law deals with commercial email, requiring that every message include a clear way for recipients to opt out of future emails. Even though it applies to email marketing, it reinforces the broader idea that consumers should always have an easy way to stop the use of their data for business purposes.
Taken together, these laws make it clear that both California and federal regulators expect companies to put control in the hands of consumers. For any business using online tracking, that means an opt-out process is required.
Sound Business Insights for Businesses Operating in the Digital World
Compliance with privacy laws protects your company’s reputation, reduces risk, and builds trust with customers and clients. At Dahl Law Group, we guide California business owners through legal challenges that come with operating in today’s data-driven economy. We help clients develop a legal strategy that protects from a wide array of potential risk angles to ensure the overall legal health of the company. If your business uses cookies, advertising tools, or consumer data, contact our team for solutions tailored to your goals.
Dahl Law Group
Latest posts by Dahl Law Group (see all)
- How California’s Single-Enterprise Rule Impacts Your Business - April 24, 2026
