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CPRA AI Provisions

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Maximum Fine
$7,500 per violation
Scope
California Businesses
Regulator
CPPA
Effective Date
January 1, 2023

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California Privacy Rights Act Artificial Intelligence Regulations

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Overview

The California Privacy Rights Act includes specific provisions governing automated decision-making technology and profiling, requiring businesses to provide meaningful information about the logic involved and allow consumers to opt-out of automated processing.

Key Facts

  • Requires disclosure of automated decision-making
  • Mandates opt-out rights for profiling
  • Enforces transparency in AI logic
  • Protects against discriminatory AI use
  • Requires regular AI impact assessments

Key Principles

AI Transparency

Requirements for transparent AI systems

Requirements

  • Clear disclosure of AI use
  • Explanation of decision logic
  • Impact of automated decisions
  • Consumer rights notification
  • Documentation of AI systems

Examples

  • Privacy policy AI sections
  • Decision logic documentation
  • Impact assessment reports
  • Consumer notices
  • System documentation

Consumer Rights

AI-related rights for consumers

Requirements

  • Right to opt-out of profiling
  • Access to AI decision information
  • Right to correct AI decisions
  • Right to human review
  • Non-discrimination protections

Examples

  • Opt-out mechanisms
  • Information request processes
  • Correction procedures
  • Human review protocols
  • Non-discrimination policies

Risk Assessment

AI risk evaluation requirements

Requirements

  • Regular impact assessments
  • Risk mitigation measures
  • Monitoring procedures
  • Documentation requirements
  • Review processes

Examples

  • Assessment documentation
  • Mitigation plans
  • Monitoring reports
  • System documentation
  • Review records

Compliance Requirements

AI Disclosure Requirements

Mandatory AI system disclosures

Implementation Steps

  • Identify AI systems in use
  • Document decision logic
  • Prepare consumer notices
  • Implement opt-out mechanisms
  • Maintain documentation

Required Documentation

  • AI system inventory
  • Logic documentation
  • Consumer notices
  • Opt-out records
  • System documentation

Impact Assessments

Required AI impact evaluations

Implementation Steps

  • Conduct risk assessments
  • Evaluate potential impacts
  • Document findings
  • Implement controls
  • Regular reviews

Required Documentation

  • Assessment reports
  • Impact evaluations
  • Control documentation
  • Review records
  • Mitigation plans

Rights Management

Consumer rights handling

Implementation Steps

  • Process opt-out requests
  • Handle information requests
  • Manage corrections
  • Provide human review
  • Document responses

Required Documentation

  • Request logs
  • Response records
  • Correction documentation
  • Review records
  • Process documentation

Enforcement & Penalties

Administrative Enforcement

Enforcement by the California Privacy Protection Agency

Penalty Categories

Intentional Violations
$7,500 per violation
For intentional violations or violations involving minors
General Violations
$2,500 per violation
For general violations of AI provisions
Non-Compliance
Varies
Additional penalties for ongoing non-compliance

Example Cases

Automated Decision-Making Violation
$7,500 per incident
2023 - Failure to provide opt-out mechanisms
Disclosure Violation
$2,500 per incident
2023 - Inadequate AI system disclosure