Privacy Law and Privacy Regulations

Artificial intelligence has revolutionized workplace productivity, but many companies have adopted AI faster than they've implemented policies to protect their confidential information. As employees routinely upload sensitive data into AI chatbots to improve efficiency, organizations face an invisible but growing risk: the inadvertent disclosure of valuable trade secrets that could undermine legal protections and competitive advantages.

Data broker laws are rapidly evolving across states, creating complex compliance challenges for businesses that may not traditionally identify as data brokers. This analysis examines New Jersey's sweeping new legislation, California's DROP deletion mechanism, and the expanding web of state registration requirements that could unexpectedly capture companies based on their data handling practices.

On May 27, 2026, the Superior Court of California held that subdivision (a) of California Penal Code § 638.51 does not apply to software on commercial websites. Plaintiff Brian Blaker sued Defendant NetScout, Inc., alleging the Defendant had violated § 638.51 of the California Invasion of Privacy Act by implementing a software development kit (SDK) on its website.

Data broker laws are rapidly evolving across states, creating complex compliance challenges for businesses that may not traditionally identify as data brokers. This analysis examines New Jersey's sweeping new legislation, California's DROP deletion mechanism, and the expanding web of state registration requirements that could unexpectedly capture companies based on their data handling practices.

On May 27, 2026, the Superior Court of California held that subdivision (a) of California Penal Code § 638.51 does not apply to software on commercial websites. Plaintiff Brian Blaker sued Defendant NetScout, Inc., alleging the Defendant had violated § 638.51 of the California Invasion of Privacy Act by implementing a software development kit (SDK) on its website.

Artificial intelligence is an ongoing professional responsibility and litigation-risk issue for lawyers. The California State Bar recently published new guidance. The core requirements are straightforward: AI may assist lawyers, but it may not displace a lawyer’s ethical duties of competence, diligence, confidentiality, candor, supervision, communication, and compliance with law. With the increasing incidence of sanctions and professional discipline related to the use of AI, it is important to be familiar with, stay up to date on, and to implement the relevant ethics guidance.