California CCPA ADMT Regulations — Explainability

Q: Does California CCPA ADMT Regulations require Explainability?

Yes. California CCPA ADMT Regulations addresses Explainability through 1 provision.

Does California CCPA ADMT Regulations require Explainability?

California • enacted

Yes — 1 provision

Requirements at a glance

This regulation imposes 5 specific requirements for Explainability across 1 provision:

Pre-use notice — Conspicuous notice before ADMT use describing purpose, how it works, outputs, and available consumer rights (§ 7220)
Opt-out right — Consumers may opt out of ADMT in significant decisions; opt-out link required in pre-use notice (§ 7221)
Access right — Consumers may request information about the business's use of ADMT with respect to them (§ 7222)
Appeal mechanism — Consumers may appeal ADMT-based decisions affecting them
No retaliation — Business may not retaliate against consumer for exercising ADMT rights

Consumer Transparency for ADMT #

Obligation:

Transparency

enacted

Effective:

Jan 1, 2027

Risk tier:

all

Scope:

Businesses using ADMT to make a **significant decision** concerning a consumer. "Significant decision" means one resulting in the provision or denial of financial or lending services, housing, education enrollment or opportunities, employment or independent contracting opportunities or compensation, or healthcare services (11 CCR § 7001(ddd)). Each domain is defined in turn: housing excludes decisions based solely on availability, vacancy, or receipt of payment (§ 7001(ddd)(2)); education covers admission, credentials, and suspension or expulsion (§ 7001(ddd)(3)); employment covers hiring, work allocation and compensation, promotion, and demotion, suspension or termination (§ 7001(ddd)(4)). Advertising to a consumer is expressly not a significant decision (§ 7001(ddd)(6))

Requirements

Requirement	Details
Pre-use notice	Conspicuous notice before ADMT use describing purpose, how it works, outputs, and available consumer rights (§ 7220)
Opt-out right	Consumers may opt out of ADMT in significant decisions; opt-out link required in pre-use notice (§ 7221)
Access right	Consumers may request information about the business's use of ADMT with respect to them (§ 7222)
Appeal mechanism	Consumers may appeal ADMT-based decisions affecting them
No retaliation	Business may not retaliate against consumer for exercising ADMT rights

Penalties

Violation	Fine
Per violation	$2,500 standard; $7,500 intentional

Sources: CPPA Regulations

View full regulation View obligation Obligation matrix