AB 566 & Your Business: Adapting to California’s New Data Privacy Frontier
California’s Legislature is debating Assembly Bill 566, which would implement a “global opt-out” setting for internet users—allowing them to block the sale or sharing of their personal data across all websites. What sounds like a consumer-friendly privacy measure could have seismic repercussions for small and medium businesses (SMBs) that rely on targeted advertising to reach customers and grow their operations.
What Is the Global Opt-Out Mandate?
AB 566 would require website operators to respect a browser-level signal indicating that a user wants to opt out of data sharing everywhere online. By embedding this preference at the technical layer of the web, the bill aims to simplify privacy protections—but it also threatens to disrupt the ad-supported model that underpins much of the modern internet economy.
Projected Economic Impacts on SMBs
A Capitol Matrix Consulting study commissioned by CalChamber estimates that even a 25% global opt-out rate would cascade into:
| Impact Metric | Projected Loss |
|---|---|
| Advertising Spending | $3.6 billion |
| Jobs | 73,000 positions |
| Labor Income | $6.4 billion |
| State Tax Revenue | $550 million |
| Local Tax Revenue | $270 million |
Why SMBs Should Pay Attention
Targeted advertising is a lifeline for California’s small enterprises, enabling precise audience reach on tight marketing budgets. SMBs constitute 87% of all California businesses and employ nearly half the state’s workforce—any significant drop in ad effectiveness could force budget cuts, hiring freezes, or worse.
How PEO Services Can Help You Adapt
Partnering with a professional employer organization (PEO) like AB Personnel can help SMBs navigate the ripple effects of AB 566 by:
- Offloading HR compliance so you focus on core operations
- Optimizing benefits packages to attract and retain talent amid economic uncertainty
- Streamlining payroll and tax filings to free up cash flow for marketing pivots
- Providing strategic guidance on shifting budgets from paid ads to alternative channels
Moving Forward with Confidence
AB 566 highlights how rapidly evolving regulations can reshape your business landscape overnight. By leveraging AB Personnel’s PEO solutions, you’ll gain the agility and expertise needed to thrive—no matter what comes next.
Contact us today to learn how we can safeguard your team, streamline your operations, and keep your growth strategy on track.
Source: calchamberalert.com