LOS ANGELES, Jan. 30, 2020 /PRNewswire/ -- New research from SRAX, Inc. (NASDAQ: SRAX), a digital marketing and consumer data management technology company, shows that the new California Consumer Privacy Act (CCPA) isn't delivering on its promise.
SRAX's latest research shows that 51% of respondents either agree or strongly agree that "I'm worried that my smart home devices are being used to spy on me."
Not only are consumers worried, they demand action: Fully 56% either agree or strongly agree that "Advertisers should be punished for having so much data about me."
"The goal of the CCPA was to reign in the power that companies like Facebook have over consumers," said Kristoffer Nelson, COO of SRAX and co-founder of BIGtoken. "However, it will hurt small and midsize companies and actually empower the large, data consuming companies it was meant to regulate."
What's ironic is that the CCPA was envisioned, in large part, to ensure privacy from Internet giants like Google and Facebook. However, both Google and Facebook is likely exempt from the CCPA, because they don't sell user data to third parties. Instead, both platforms gather data and use its own subscriber data to target advertising – which is not specifically prohibited under the CCPA. Facebook has made this specific argument recently.
"CCPA was written by well-meaning and well-intending people who don't have a full understanding of technology, data, or advertising," added Nelson. "The law that was created to challenge big tech surveillance further entrenches these legacy incumbents while harming small businesses and publishers. But, the law is now in affect and the industry must comply. It's estimated that companies will spend $55 billion in 2020 to comply, but the law will create a better internet for consumers, and the friction and challenge of compliance will create new opportunities for businesses, as it forces a more transparent and balanced relationship with customers."
The gold-standard safe harbor for businesses is to adopt a 100% opt-in platform for gathering, using, and sharing consumer information that operates in an open and transparent manner, like BIGtoken and unlike the tech incumbents. And consumers should insist on sharing their data only with companies that adopt such a simple, user friendly opt-in stance toward privacy.
The California Consumer Privacy Act, which took effect Jan. 1, 2020, creates new consumer rights relating to the access to, deletion of, and sharing of personal information that is collected by businesses. The statute requires the state to create regulations to facilitate consumers' new rights and provide guidance to businesses for how to comply with those regulations.
The CCPA research survey was conducted by BIGtoken, the consumer data management and distribution system. For more information, visit: https://bigtoken.com/.
SRAX, Inc. (NASDAQ: SRAX) is a digital marketing and consumer data management technology company. SRAX's technology unlocks data to reveal brands' core consumers and their characteristics across marketing channels. Monetizing its data sets, SRAX is growing multiple recurring revenue streams through its various platforms. Through the BIGtoken platform, SRAX has developed a consumer-managed data marketplace where people can own and earn from their data thereby offering everyone in the Internet ecosystem choice, transparency, and compensation. SRAX's tools deliver a digital competitive advantage for brands in the CPG, investor relations, luxury, and lifestyle verticals by integrating all aspects of the advertising experience, including verified consumer participation, into one platform. For more information on SRAX, visit www.srax.com.
BIGtoken, built by SRAX (NASDAQ: SRAX), is a consumer data management and distribution system. BIG is the first consumer-managed data marketplace where people can own and earn from their data. Through a transparent platform and consumer reward system, BIG offers consumers choice, transparency, and compensation for their data. Participating consumers earn rewards, and developers are able to build pro-consumer online experiences on top of the BIG platform. The system also provides advertisers and media companies access to transparent, verified consumer data to better reach and serve audiences. For more information on BIGtoken, visit www.bigtoken.com.
CONTACT: Rich Mullikin, Rocket Science PR, [email protected], 925-354-7444