Privacy ComplianceSensitive Data
California Vetoed a Ban on Selling Sensitive Data. Which States Have One?
Governor Newsom vetoed AB 1542 on September 27, 2026, declining to ban the sale of sensitive personal information in California. However, five other states have already taken that step by banning the sale of either sensitive data or precise location data.
Summary
California still allows a business to sell sensitive personal information, as long as consumers can opt out of the sale and limit its use. Meanwhile, Oregon, Virginia, and Connecticut ban the sale of precise location data, which is one category of sensitive personal information. Maryland and New Jersey have gone the farthest and banned the sale of all sensitive data entirely. These requirements have implications for business operations and the privacy notices that describe them. I recommend state-specific disclosures for any business that sells sensitive data, including those that share precise location data with advertising partners.
What Would AB 1542 Have Done?
AB 1542 would have amended the California Consumer Privacy Act (CCPA) to prohibit the sale of sensitive personal information. Its core provision read, "a business, service provider, or contractor shall not sell or share sensitive personal information to a third party." Sensitive personal information includes precise location, health information, government ID numbers, and immigration status, among several other categories. The ban would not have applied when a consumer directs the business to disclose the information to a third party.
The Legislature sent the bill to the Governor on September 9. He returned it without his signature on September 27, writing that "a categorical ban on sharing that information is a step too far." He noted that California already gives consumers the option to limit the sharing of sensitive information and warned of "unintended consequences if consumers are removed entirely from the decision process." He also cited enforcement costs that were not included in the state budget.
What Does California Allow Today?
California regulates the sale of sensitive personal information through consumer choice. Under Civil Code section 1798.135, a business that sells or shares it must offer two links, "Do Not Sell or Share My Personal Information" and "Limit the Use of My Sensitive Personal Information," or a single link that does both. A consumer who uses one of these links, or whose browser sends an opt-out preference signal, can stop the sale. Without an opt-out request in any of these forms, the sale can continue.
California defines a sale broadly, as an exchange of personal information for money or "other valuable consideration." This is how, unintuitively, the use of ordinary advertising and even analytics trackers can qualify as a sale without any money changing hands. An app or website that collects a visitor's precise location can pass it to advertising partners the same way. Civil Code section 1798.140 defines precise location as location within a radius of 1,850 feet.
Which States Ban the Sale of Sensitive Data?
Maryland and New Jersey ban the sale of all sensitive data, while Oregon, Virginia, and Connecticut ban the sale of precise location data only. All five bans took effect between October 2025 and October 2026. Texas and Florida allow the sale but require a specific notice, in addition to the consent that most state privacy laws require before a business processes sensitive data. The table lists each of these states' approaches, with California included for comparison.
| State | Rule | Since |
|---|---|---|
| Maryland | Sale of sensitive data is banned | Oct 2025 |
| New Jersey | Sale of sensitive data is banned | June 2026 |
| Oregon | Sale of precise location is banned | Jan 2026 |
| Virginia | Sale of precise location is banned | July 2026 |
| Connecticut | Sale of precise location is banned | Oct 2026 |
| Texas | Sale requires consent and a notice | July 2024 |
| Florida | Sale requires consent and a notice | July 2024 |
| California | Sale allowed, with an opt-out option | Jan 2023 |
Based on each state's statute or enacted act, as of October 2026.
The bans are not identical. For example, New Jersey sets a penalty of $50,000 for each record sold. Virginia defines a sale as an exchange for money only, so its ban may not reach advertising tools that trade data for a service. Connecticut still allows the sale of other sensitive data with the consumer's consent.
What Does This Mean for a Business?
Many businesses default to handling personal data the same way for customers in every state, whether it moves through website tags, app software, or data shared directly with partners and vendors. A sale of sensitive data that is lawful in one state may be prohibited in another, so a business that sells it has to account for this and handle it differently for consumers in each state.
Then, the privacy notice has to reflect those differences. Texas requires a business that sells sensitive data to post the exact sentence "NOTICE: We may sell your sensitive personal data." Louisiana will require it too, starting January 1, 2027. The same sentence, read by a Maryland or New Jersey resident, describes a practice that those states prohibit.
I recommend that a business first confirm whether it sells sensitive data at all, through any channel. That includes precise location sent to advertising partners, customer lists shared with marketing partners, and data provided to data brokers. If it does, each of those channels may need special rules that apply by state, based on the visitor's location online and the consumer's address in customer records. The notice can then describe each state's rules in state-specific sections, rather than one statement that is accurate in some states and an admission of a violation in others.
Questions
Does California require consent to collect sensitive personal information?+
Not for adults. California requires a business to disclose the categories of sensitive information it collects and why, and to let consumers limit its use. Selling or sharing the personal information of consumers the business knows are under 16 does require opt-in consent. For children under 13, a parent must consent.
Can an ordinary website sell sensitive data without realizing it?+
Yes, in at least a few ways. For example, precise location collected through the browser or an app can reach advertising or analytics partners in exchange for their service. As another example, a health website can reveal a visitor's condition through the page addresses and article titles its tags send to those partners.
California's Attorney General raised the second issue in its 2025 settlement with Healthline. In Maryland and New Jersey, which ban the sale of all sensitive data, either transfer may count as a prohibited sale.
Is location based on an IP address precise location?+
Usually not. IP-based location is typically accurate to a city or region, while the state definitions cover a radius of 1,750 feet in most states and 1,850 feet in California. A business should still confirm how each vendor derives location, because some vendors combine IP addresses with other location signals.
Briefings are informational and do not constitute legal advice.
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