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Small‑business and startup representatives warn CPPA rules could hinder growth and drive firms from California
Summary
Small‑business advocates, chambers of commerce and startups told the CPPA that the draft regulations' compliance costs, website and advertising changes, and broad ADMT definitions could burden firms and reduce competitiveness, citing agency impact estimates and individual startup costs.
Small‑business groups, chambers of commerce and startup founders used the CPPA's Jan. 14 public comment hearing to warn that the proposed privacy regulations would impose heavy compliance costs, make digital customer acquisition harder and, in some cases, push businesses out of California.
Multiple speakers referenced the agency's economic analysis repeatedly during testimony. Julian Kennedy, president of the California Hispanic Chambers of Commerce, cited figures presented in the rule‑making materials: "3,500,000,000 in direct implementation costs…
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