California tried to protect students' data. Tech companies found loopholes

California is advancing legislation aimed at closing loopholes in student data privacy protections. Assemblymember Dawn Addis, a San Luis Obispo Democrat, is sponsoring Assembly Bill 1159 to restrict how artificial intelligence companies use student data and to create new safeguards for college students. The bill responds to gaps in earlier laws that have permitted technology companies to collect and sell personal information despite rules targeting kindergarten through 12th grade education technology. The 2014 state law was the first in the country to directly regulate education technology companies by barring them from selling student data, using it for advertising, or disclosing personal details. A 2018 measure later required companies to offer California users options to opt out of data collection and to delete some information. Privacy advocates say those statutes repeatedly fell short as technology spread into areas such as school sports coordination and health records. Business organizations are divided on the measure. The California Labor Federation supports it, but the California Chamber of Commerce and TechNet oppose the proposal. The labor federation and chamber together spent nearly 8 million dollars on campaign donations to state legislators and other political activities in 2024, according to the CalMatters Digital Democracy database. Experts caution that the bill may not fully block data sales. Many apps and services used outside the classroom, including those for extracurricular programs, can argue they are not primarily designed or marketed for K-12 schools. One parent reported that a team management platform sought her name, date of birth, gender, email address, and phone number, along with similar details for her children, even as the service's policy noted that tracking technologies could be considered a sale of personal information under state law.