California CCPA ADMT Regulations — Explainability

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

Does California CCPA ADMT Regulations require Explainability?

California • phased enforcement

Yes — 1 provision

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 used to make significant decisions, subject to the exceptions in § 7221(b). A business that interacts with consumers online and provides an opt-out must include an opt-out link in the Pre-use Notice (§ 7221(a)-(c))
Access right — Consumers may request information about the business's use of ADMT with respect to them (§ 7222)
Human appeal exception — A business may use the § 7221(b)(1) exception to the opt-out duty if it provides a qualifying method to appeal the significant decision to a human reviewer with authority to overturn it; the Pre-use Notice must then explain how to appeal (§§ 7220(c)(2)(A), 7221(b)(1))
No retaliation — Business may not retaliate against consumer for exercising ADMT rights

enacted

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))

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 used to make significant decisions, subject to the exceptions in § 7221(b). A business that interacts with consumers online and provides an opt-out must include an opt-out link in the Pre-use Notice (§ 7221(a)-(c))
Access right	Consumers may request information about the business's use of ADMT with respect to them (§ 7222)
Human appeal exception	A business may use the § 7221(b)(1) exception to the opt-out duty if it provides a qualifying method to appeal the significant decision to a human reviewer with authority to overturn it; the Pre-use Notice must then explain how to appeal (§§ 7220(c)(2)(A), 7221(b)(1))
No retaliation	Business may not retaliate against consumer for exercising ADMT rights

Violation	Fine
Per violation	Up to $2,663 per violation; $7,988 for intentional violations or violations involving personal information known to concern consumers under 16 (CPI adjustment effective January 1, 2025)

Sources: CPPA Regulations Approved regulations snapshot Official final rulemaking status CPPA CPI adjustment snapshot