New California Privacy Protection Agency Advances Rules re: Cyber Audits, Risk Assessments, New Automated Decisionmaking Technologies Rights, and More

On July 24, 2025, the California Privacy Protection Agency approved sweeping new regulations covering cybersecurity audits, risk assessments, and automated decisionmaking technologies (ADMT), pending review by California’s Office of Administrative Law. Certain businesses will be required to undergo annual independent cybersecurity audits beginning in 2027, phased in by company revenue, covering 18 components of a cybersecurity program and culminating in executive certification. Businesses must also conduct risk assessments before engaging in activities such as selling personal information, processing sensitive data, or using ADMT for significant decisions, with California uniquely requiring evaluation of “negative impacts” to consumers. Beginning April 1, 2027, businesses using ADMT for significant decisions must provide pre-use notices, access to information about how the ADMT works, and opt-out rights, though the regulations clarify that ADMT excludes technologies where a human retains authority to review and override the output. Additional provisions strengthen opt-out notification requirements and prohibit dark patterns in consent mechanisms, with several of these provisions already in effect as of January 1, 2026.