An order approving Audacy’s request for a temporary exemption from the foreign-ownership rules was adopted but isn’t expected to be released before next week, FCC officials told us. The waiver would allow Audacy to complete foreign-ownership review after it finishes a bankruptcy restructuring that involves control of the broadcaster passing to a fund affiliated with George Soros' family. FCC Republicans hadn’t submitted dissenting statements Wednesday afternoon but indicated they plan to do so, the agency officials said. Broadcast industry officials, attorneys and others told us the Audacy transaction wouldn’t attract as much attention without Soros’ name attached, and that radio broadcasters have long sought increased private equity investment in their industry. “They’re making it a political ax,” said Christopher Terry, University of Minnesota media law professor. “The radio industry has been cash-strapped for 20 years.”
Fewer than 1% of Californians exercised opt-out rights with the largest data brokers last year, a Consumer Watchdog report released Thursday found. The consumer group said it analyzed opt-out numbers for Experian, Acxiom and LiveRamp. People probably aren’t exercising their rights under the California Consumer Privacy Act (CCPA) in higher numbers “because these rights aren’t user friendly, as opting out has to be done website by website, and that takes forever,” said Justin Kloczko, Consumer Watchdog tech and privacy advocate. That could soon change, he said. Under the 2023 Delete Act, Californians will be able to delete all data that a data broker collects in one step starting in 2026, said Kloczko. In addition, if Gov. Gavin Newsom (D) signs AB-3048, which passed the legislature last month (see 2408290005), consumers will be able to opt out from the sale of and sharing data on all websites through a required option in web browsers, he said.
The California Privacy Protection Agency sought feedback on proposed data broker registration rules, the CPPA said Friday. Comments are due Aug. 20. The CPPA will also hold a virtual hearing that day at 1 p.m. PDT. California’s 2023 Delete Act authorized the agency to make registration rules. “The proposed regulations address common questions and obstacles that surfaced for data brokers in the initial registration period,” including about registration fees, statutory definitions and requirements for registration, registry updates and website disclosures, the CPPA said.
California’s Senate Judiciary Committee on Tuesday passed legislation that would ban companies from using children’s personal data to train AI systems without parental consent. The committee unanimously advanced AB-2877, and it’s now up for Senate Appropriations Committee consideration. Introduced by Assemblymember Rebecca Bauer-Kahan (D), the bill passed the California Assembly 73-0 in May. The legislation expands privacy protections under the California Consumer Privacy Act to include machine-learning technology. Bauer-Kahan told the committee the expansion is necessary because California passed its privacy law before the widespread use of AI. AB-2877 would require parental consent for children under 13 and teen consent for users aged 13-15. TechNet and the California Chamber of Commerce oppose the legislation. Chamber Policy Advocate Ronak Daylami said the bill is rooted in the assumption that it’s inherently harmful to use a teen’s personal information to train AI. Legislators should focus on a technology’s outputs instead of regulating and interfering with inputs, she said. Sen. Benjamin Allen (D) briefly noted the bill's potential for pushing companies out of California but conceded he hadn’t fully studied the measure. California’s current budget crisis has “made me acutely aware of how dependent we are on the tech industry to pay for all the programs we like,” Allen said. The legislation doesn’t impede businesses' ability to operate in the state, said Bauer-Kahan, noting a desire from Gov. Gavin Newsom (D) for the state to lead in AI technology (see 2405300064). Brokers are making a lot of money selling Californians’ data, and the state should clarify that it’s not allowed with kids unless there’s parental consent, she said.
The California Public Utilities Commission on Thursday denied AT&T relief from carrier of last resort obligations, while opening a rulemaking to take a fresh look at COLR rules. Also at its meeting, the CPUC approved broadband grants, acted on enforcement items and set annual budgets for the California Advanced Service Fund (CASF) and state video franchise law.
Sinclair Broadcast will sell anything in its portfolio -- at “the right price” -- so it can close the gap between its valuation and share price, CEO Chris Ripley told The Media Institute during a luncheon Tuesday. Ripley also predicted that generative AI eventually will create most media, and said asymmetric regulation and increased competition are broadcasting’s biggest obstacles. “Unfortunately, for our industry, we can't seem to get out from underneath some of these old regulations,” Ripley said. “There really isn't any reason for that to be, besides that's the way it always was.”
The possible end of the federal affordable connectivity program (ACP) isn't an excuse to make sweeping changes to state broadband grant rules, ISPs told the California Public Utilities Commission this week. In Monday comments (docket R.20-08-021), AT&T, Frontier Communications, cable companies and small rural local exchange carriers urged the CPUC to swiftly reject last month’s The Utility Reform Network (TURN) petition to modify rules for the California Advanced Services Fund (CASF) broadband infrastructure account (see 2404150062).
The Vermont legislature passed bills on privacy and kids’ online safety Friday. After back-and-forth on amendments, the House and Senate agreed to a comprehensive data privacy bill (H-121). While final text wasn’t available Monday, “reports indicate that it has a narrow private right of action focused on data brokers and larger data holders and limited to the bill’s sensitive data and consumer health data provisions,” Husch Blackwell attorney David Stauss blogged. That might be a first among states (see 2403220040). The legislature also agreed to an age-appropriate design code bill (S-289) like the California law. Pouncing immediately, tech industry group NetChoice urged Vermont Gov. Phil Scott (R) to veto S-289. The bill “would chill lawful speech online and negatively impact Vermont’s vibrant small business community,” wrote NetChoice General Counsel Carl Szabo: “Similar requirements … have already been challenged and are currently enjoined.” Design It For Us, a youth advocacy group that originally campaigned to pass California’s kids code law, applauds the legislature “for working to protect young people from online harms and passing much needed Kids Code legislation despite industry efforts to defeat it,” said co-Chair Zamaan Qureshi in a statement. Accountable Tech, another supporter of such laws, also lauded passage of S-289. “It’s clear that momentum is on the side of young people fighting for safer online spaces as Vermont becomes the third state to pass age-appropriate design code legislation with the Vermont Kids Code,” said Executive Director Nicole Gill.
Sinclair CEO Chris Ripley signaled that his company is open to selling “assets” amid rumors that it's eyeing divesting 60 stations. Meanwhile, Nexstar CEO Perry Sook said broadcasters can’t have confidence about transactions in the current regulatory environment. The CEOs spoke during their respective Q1 earnings calls last week. Ripley, Sook and executives from Gray and E.W. Scripps also discussed progress on ATSC 3.0, a backloaded political advertising market, and streaming during earnings calls.
TikTok will challenge the newly approved “unconstitutional” law forcing ByteDance to sell the platform, it said in a statement Wednesday as President Joe Biden signed the measure.