Rules / California

CCPA Regulations on Automated Decisionmaking Technology, Risk Assessments and Cybersecurity Audits

Partly in forceRegulationBinding

Updates the California Consumer Privacy Act regulations to give consumers rights to pre-use notice, opt-out and access when businesses use automated decision-making technology for significant decisions (e.g. employment, lending, housing, health care, education), and requires risk assessments and annual cybersecurity audits for high-risk processing. Applies to businesses subject to the CCPA.

Why it matters

Companies using AI to make or substantially replace human decisions about Californians need ADMT notices, opt-out/appeal paths and documented risk assessments.

What it requires

Impact assessmentConsumer rightsTransparency to usersData governance

Key obligations, provision by provision

8 obligations in article order. How IDs work

  1. Complete an annual independent cybersecurity audit if your processing presents significant security risk, and certify completion to the CPPA by each 1 Apr; the first report is due 1 Apr 2028, 2029 or 2030 by revenue.

  2. Conduct and document a risk assessment before starting processing that presents significant privacy risk, including using ADMT for significant decisions or training ADMT or facial recognition, and review it at least every three years.

  3. Give any business to which you make available ADMT trained on personal information, for significant decisions, all available facts it needs to conduct its own risk assessment.

  4. Submit risk assessment information to the CPPA, including counts by processing type and an executive’s attestation under penalty of perjury, by 1 Apr 2028 for 2026-2027 assessments, then by each 1 Apr.

  5. Give consumers a Pre-use Notice at or before collecting their data for ADMT use in significant decisions, explaining the specific purpose, how the ADMT works, and how to opt out (or appeal) and access ADMT information.

  6. Let consumers opt out of ADMT used for significant decisions through at least two easy methods, unless an exception applies, such as offering an appeal to a qualified human reviewer with authority to overturn the decision.

  7. Stop processing a consumer’s personal information with the ADMT within 15 business days of an opt-out request and tell service providers and others processing it to do the same.

  8. Explain in plain language, when a consumer requests access to ADMT, the specific purpose of its use, the logic of the ADMT, and the outcome and how its output was used in the decision.

Penalties

CCPA administrative fines of $2,500 per violation or $7,500 per intentional violation (inflation-adjusted)

SourceCalifornia Privacy Protection Agency: https://cppa.ca.gov/regulations/ccpa_updates.html Checked against the source on 4 Oct 2026. Adopted by the CPPA Board 24 Jul 2025 and approved by the Office of Administrative Law 22 Sep 2025; regulations effective 1 Jan 2026 with phased compliance (ADMT 1 Jan 2027; risk-assessment attestations and audits later).

Cite this record

WTA-R-US-CA-0003: CCPA Regulations on Automated Decisionmaking Technology, Risk Assessments and Cybersecurity Audits. California Privacy Protection Agency. wheresthe.ai, https://wheresthe.ai/rule/us-ca-ccpa-admt-regulations-2025/ (checked 4 Oct 2026).

History

  • Adopted changed from 22 Sep 2025 to 24 Jul 2025

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