Regulators of data privacy laws have expressed a desire in recent months to intensify enforcement around opt-out preference signals, also known as universal opt-out mechanisms (the “Opt-Out Signals”).

Opt-Out Signals allow consumers to automatically opt-out of the sale and sharing of personal information for targeted advertising across all websites they may visit through an internet browser or mobile operating system. 

Currently, although most browsers provide users some level of privacy settings, of the approximately eleven states that require businesses to honor Opt-Out Signals, none require that browsers actually provide those signals. 

If a business fails to comply with an Opt-Out Signal, regulators can impose fines and other penalties for noncompliance.  In September 2025, state regulators in various states, including California, Colorado and Connecticut indicated expanded enforcement through investigative sweeps of companies’ compliance with consumer requests to opt-out, including those related to Opt-Out Signals.

Also in September 2025, the California legislature passed AB 566, the California Opt Me Out Act, which if signed by the governor, would require both internet browsers and mobile operating systems to offer these Opt-Out Signals in their settings.  Though unclear how many people will be aware of, or how many will elect to, use Opt-Out Signals, the universal opt-out mechanism will allow consumers to avoid opting out from each individual website, and will require businesses to navigate further compliance and implementation burdens. 

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Photo of Alicia A. Baiardo Alicia A. Baiardo

Ali, a partner in the San Francisco office of McGuireWoods, is a commanding commercial litigator trusted by three of the largest U.S. banks and numerous Fortune Global 500 companies to defend high-stakes, multimillion-dollar class actions and other complex litigation. Her practice spans nationwide…

Ali, a partner in the San Francisco office of McGuireWoods, is a commanding commercial litigator trusted by three of the largest U.S. banks and numerous Fortune Global 500 companies to defend high-stakes, multimillion-dollar class actions and other complex litigation. Her practice spans nationwide consumer class actions involving millions of class members, California-wide cases alleging unfair competition, fraud, violation of various consumer protection statutes, complex Ponzi-scheme matters brought against financial institutions, and the rapidly evolving landscape of mass arbitrations. She has a strong track record of successfully representing clients through trial, including defending major national banks in multidistrict class action litigation and individual class actions, skillfully navigating the regulatory implications that often accompany such matters.

Photo of Anthony Q. Le Anthony Q. Le

Anthony has a broad array of experiences assisting with compliance issues, regulatory and enforcement matters, internal investigations, and individual and class litigation. His diverse practice helps him achieve the most efficient and practical results for his clients spanning the financial services, technology, automobile…

Anthony has a broad array of experiences assisting with compliance issues, regulatory and enforcement matters, internal investigations, and individual and class litigation. His diverse practice helps him achieve the most efficient and practical results for his clients spanning the financial services, technology, automobile, and retail sectors.

Photo of Payam Khodadadi Payam Khodadadi

Payam graduated from law school in the top 3% of his graduating class. Payam practices in the areas of data privacy and security, restructuring and insolvency, and complex litigation. In each year from 2013 through 2020, Payam was selected by the prestigious Super…

Payam graduated from law school in the top 3% of his graduating class. Payam practices in the areas of data privacy and security, restructuring and insolvency, and complex litigation. In each year from 2013 through 2020, Payam was selected by the prestigious Super Lawyers publication as a “Rising Star.”