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California Governor Jerry Brown signed into law a bill that ensures consumers have control over their personal data on the internet.

On Thursday, the California State Legislature unanimously passed AB 375, the California Consumer Privacy Act of 2018. Gov. Brown approved it immediately to prevent a stricter privacy initiative that will appear in the November ballot.

Alastair Mactaggar, a real estate developer and proponent of the privacy initiative, agreed to withdraw it if the legislative solution becomes a law.

The California Consumer Privacy Act of 2018 will take effect on 2020. Lawmakers believe that the law provide significant privacy protection to consumers without stifling innovation.

Under the law, technology companies are required to disclose the type of information they collect from consumers. Tech companies must also reveal as to whom they are sharing consumers’ data.

Additionally, the law provides consumers the right to prevent tech companies from selling their data. It prohibits tech companies from charging more money or reducing the services to consumers if they decide not to allow them sell their data.

Furthermore, the law allows consumers to file a claim of up to $750 against tech companies if there is an unauthorized access to their their data.

California is leading in protecting consumer privacy

In a statement, the authors of the California Privacy Act said the state is leading in protecting consumers privacy.

According to Assemblymember Ed Chau, consumers must have the right to choose how business collect and use their personal data. He said, "It is your data, your privacy, your choice.”

Senator Bob Hertzberg stated, “We in California are continuing to push the envelope on technology and privacy issues..."

Senator Bill Dodd commented, “Once again California is taking the lead in protecting consumers and holding bad actors accountable." He is hoping that other states will follow. He also noted that federal government has been unwilling to ensure the privacy and safeguard consumers' personal information.

Consumer privacy advocates are happy with the law. Marc Rotenberg, the executive director of Electronic Privacy Information Center, described it as a “milestone moment for privacy law in the United States."

In addition, Rotenberg said the law "sends a powerful message that people care about privacy and that lawmakers will act."

Meanwhile, Facebook supports the California Consumer Privacy Act. Will Castleberry, vice president of state and local public policy emphasized that Facebook doesn't sell users' data.

In addition, Castleberry said, "People should be in control of their information online. Companies should be held to high standards...especially when they sell data."