Client Alert: California Signals a New Era of Privacy Enforcement: Global Privacy Control, Website Tracking, and the Expanding Obligations of Businesses
Headline from The National Law Review · compiled from 4 sources
Our analysis · checked against 17 sources
California regulators step up opt-out signal enforcement; browser mandate starts January 2027
California's privacy agency and attorney general have settled 13 CCPA cases since 2022, four in 2026 through May, with penalties up to $12.75 million (GM/OnStar). Enacted: browsers must offer an opt-out signal from January 1, 2027; business duties to honor it already existed, and "new era" is the law firm's reading.
The framing'New era' and 'expanding obligations' rest on record settlements up to $12.75 million and a new browser mandate. But GPC enforcement dates to the 2022 Sephora case, and AB 566 adds no duty for the websites that receive the signal, only for browser makers from Jan. 1, 2027.
What the headline leaves out
- GPC enforcement began with the 2022 Sephora settlement; at least 8 of 13 settlements cite opt-out or GPC failures.
- AB 566 binds only browser developers, not mobile operating systems or the websites receiving the signal.
- Penalties are capped at $2,663 per unintentional and $7,988 per intentional violation.
- The CPPA had $15.77 million and 53 positions for FY2025-26.
Who gains, who loses
| Who | How many | Effect on each | In or out if |
|---|---|---|---|
| California consumers using browsers | Not found | One browser-level opt-out signal instead of per-site opt-outs, from Jan. 1, 2027 | In if using a covered browser; mobile OS-level signals not mandated |
| Browser developers | Not found | New duty to offer a configurable signal; immunity if websites ignore it | In if they develop or maintain a browser; browser engines and mobile OS makers out |
| Businesses meeting CCPA thresholds, including out-of-state | Not found | Existing duty to honor GPC; fines up to $2,663 or $7,988 per violation and rising enforcement | In if revenue $26.625M+, 100,000+ CA consumers' data, or 50%+ revenue from selling data |
| Businesses below CCPA thresholds | Not found | No CCPA opt-out duty | Out if no threshold is met |
What happens next
AB 566 becomes operative for browser developers on January 1, 2027. ZwillGen expects regulators to keep using investigative subpoenas and litigate the scope of their authority; Legal 500 says the Consortium raises the risk of coordinated multistate enforcement and larger settlements. Watch for browser releases adding the signal and further settlements from the 2025 sweep.
Possible knock-on effects
- Browsers sending the signal by default-available settings could raise opt-out volumes, which may expose businesses with non-functional opt-out tools to more complaints and enforcement. (mechanism: Follows from AB 566 requiring browsers to offer the signal while liability stays with receiving businesses; the NLR alert says signal use will become 'more common.'. Watch for: Rise in CPPA complaint counts or GPC-related settlements after January 2027)
- Multistate coordination through the Consortium of Privacy Regulators could produce joint actions and larger settlements, mattering to businesses operating in several states. (named expert: Legal 500 analysis. Watch for: Joint settlements announced by multiple state AGs)
- Regulators may keep enforcing investigative subpoenas in court, which could widen the practical reach of CPPA investigations. (named expert: ZwillGen analysis of the Tractor Supply settlement. Watch for: Court rulings on CPPA subpoena authority)
Sources: CPPA multistate GPC sweep announcement (primary), CA AG Disney settlement press release (primary), CCPA fines and penalties compilation, Privacy World on Healthline settlement, ZwillGen on Tractor Supply settlement, CPPA FAQ (primary), CPPA CPI adjustment (primary), CPPA 2025 annual report (primary), CPPA budget report, Hunton on AB 566, AB 566 bill page (primary), AB 566 statutory text (primary), California Opt Me Out Act explainer (primary), Cookie-Script on Opt Me Out Act, Goodwin on multistate sweep, National Law Review client alert, Legal 500 on GPC sweep
Written in our own words from the sources above, and checked claim by claim before it was published. The report below says only what each outlet said.
The report: what outlets said
California regulators are preparing to clarify how businesses must recognize consumer opt-out signals before personal information is disclosed through advertising technologies[1]
The National Law Review alert says California is signaling that businesses must do more than simply offer consumers the ability to opt out of the sale or sharing of personal information.[1] The alert says those preferences must be "technically implemented, consistently enforced, and honored before covered disclosures occur."[1]The alert also warns that with new browser requirements taking effect in 2027, businesses should reassess their consent management systems, tracking technologies, and cross-device privacy controls.[1]The authors say regulators are now examining whether the underlying systems operate consistently with the rights described in[1] privacy policies. They advise businesses to treat CMP implementation as an ongoing compliance process rather than a one-time deployment.[1]The privacy site gblock.app reports that on November 6, 2026, the Board of the California Privacy Protection Agency, which now calls itself CalPrivacy, adopted a stipulated final order requiring Federal Express Corporation to pay $2,975,000[2]. The same outlet reports that the board voted unanimously the same day to begin formal rulemaking on opt out preference signals[2].Ketch, a privacy software company, writes that the California Opt Me Out Act, signed into law in October 2025, will require browsers operating in California to build in an opt-out preference signal option directly[3].CalMatters reported in April that a webXray audit found possible "industrial-scale noncompliance with California requirements."[4] CalMatters also reported that a Google spokesperson said the company follows the law and called the audit "based on a fundamental misunderstanding of how our products work."[4]
Sources
- [1]Client Alert: California Signals a New Era of Privacy Enforcement: Global Privacy Control, Website Tracking, and the Expanding Obligations of Businesses
- [2]FedEx Pays $2.975M for Ignoring California Opt Outs
- [3]Global Privacy Control Compliance: What the CCPA Requires
- [4]Websites break California privacy law at ‘industrial scale,’ survey finds
Every sentence here reports what a named outlet said, with a link to it. Compiled by 93 from the reporting below.
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