Conversely, the biggest challenge for people is unintended opt out from multiple services, according to Eric Ellman, svp for public policy and legal affairs at the Consumer Data Industry Association.

“This could also promote more fraud by preventing the authentication and verification necessary,” Ellman told Adweek.

“The main way smaller entities advertise, reach and build new audiences for their products and services is by leveraging third-party data sets provided by data brokers,” the trade bodies write. “Absent this data, smaller enterprises will lose a critical path to reach and attract new customers, and consumers overall will have less exposure to new products and services that may interest them.”

Holding companies such as IPG have also attempted to quash the proposed data broker bill.

Last week, IPG, owner of data broker Acxiom, reached out to California lawmakers via email with the intention of arranging a meeting to discuss the legislation, per Politico.

Meanwhile, Acxiom CEO Chad Engelgau cited his concerns regarding the bill on his LinkedIn profile.

“Since 2018, we have had at least 12 state privacy laws pass that have, or will, cost individual businesses thousands, and larger companies millions, to comply with,” he wrote. “Now California is considering SB 362, which could easily destroy its data-driven economy and negatively impact everyone in the marketing ecosystem, consumers included.”