The social network said in a blog post that when a business elects to use the feature, Facebook will process information about people in California as that business’ service provider, meaning that it will limit how that information is processed as specified by state-specific terms.

Facebook added that businesses may notice an impact on their campaign performance and effectiveness when using the Limited Data Use tool, and their retargeting and measurement capabilities will also be limited.

The social network will implement a transition period, which will last through July 31 for most of its business tools, and it will automatically limit how it uses data that businesses send through those tools about people from California.

After July 31, businesses must activate Limited Data Use in order for this to happen, but if they do so during the transition period, it takes effect immediately.

More details are available here on Limited Data Use and which business tools it supports.