California Privacy Protection Agency’s Overreach Will Drive Up Costs & Stifle Innovation

The California Privacy Protection Agency (CPPA) is considering new regulations that would cost consumers, harm businesses and undermine California’s innovation economy — all while exceeding its legal authority to regulate AI and automated decision-making tools.

At a time when Californians are already struggling with a high cost of living, these regulations will make essential goods and services even more expensive, keeping the state less affordable for families and businesses.

WHY THIS MATTERS 🚨

• $14 billion in business costs and more than 100,000 job losses over 10 years — by CPPA’s own estimates.
• Threat to AI innovation — pushing jobs, businesses and investment to other states.
• Regulatory overreach — exceeding the authority granted under Proposition 24.
• Ignoring public and legislative concerns — CPPA is disregarding input from Californians, lawmakers and businesses, bypassing the Governor’s Office and Legislature.

How CPPA’s Overreach Will Cost Californians 💰

These regulations will drive up prices, limit choices and hurt businesses—and every Californian will pay the price. CPPA’s own study predicts:

$14 billion in business costs over 10 years.
$2.8 billion in lost state revenue by 2028.
126,000 job losses by 2030.

An independent analysis by Capitol Matrix Consulting reveals massive flaws in CPPA’s cost estimates—showing that actual economic damage could be far worse than CPPA admits.

CPPA IS OVERSTEPPING ITS AUTHORITY 🚫

Proposition 24 did not give CPPA authority to regulate AI, cybersecurity audits, or broadly control automated decision-making technology (ADMT). Its authority should be limited to specific privacy protections.

🔹 Voters never approved AI regulation. CPPA’s overreach goes beyond privacy law and into broad tech regulation.
🔹 Regulations must align with the CCPA’s original intent—not rewrite privacy laws or impose restrictions never approved by voters.

What Needs to Happen Now ⚖️

Restore the appropriate oversight to ensure CPPA stays within its legal bounds and does not undermine California’s economy:

✅ Stronger legislative checks and balances to prevent regulatory overreach
✅ Independent economic reviews of major regulations.
✅ Clarification of CPPA’s role to stop it from redefining privacy law or imposing AI regulations.

How You Can Help ✉️📢

The CPPA is moving forward with these costly regulations, but there’s still time to take action. Your voice matters — help us push back by joining the coalition and making your concerns heard:

• Submit Public Comment at CPPA’s Next Meeting on Friday, April 4 at 8:30 a.m.  — The CPPA Board will discuss these regulations at its upcoming meeting. Show up, speak out and demand accountability. Join the meeting:
  • Zoom: https://cppa-ca-gov.zoom.us/j/88553859451
    Webinar ID: 885 5385 9451
  • Phone: US: +1 216 706 7005 or +1 866 434 5269
    Conference Code: 682962
• Send a Letter to CPPA Board Members, the Legislature & Governor’s Office — Let the CPPA know these regulations will hurt California families, businesses and innovation.
• Spread the Word — Share this information with your networks, business leaders and community. The more voices speaking out, the stronger our impact.

About the CPPA

The California Privacy Protection Agency (CPPA) was created in 2020 under Proposition 24 to enforce privacy laws, not regulate AI or broadly oversee tech policy. Its role was meant to:

• Expand opt-out rights for data sharing.
• Establish a privacy enforcement agency.
• Transfer rulemaking authority from the Attorney General to CPPA — with a specific focus on privacy protections, not AI regulation.

The CPPA is governed by a five-member board appointed by the Governor, Attorney General, Senate Rules Committee, and Assembly Speaker. While its mission is to enhance consumer privacy, it must not exceed voter-approved authority under Proposition 24.

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