Social Reality Inc (NASDAQ:SRAX) stock climbed midday Friday after the Los Angeles-based digital advertising company said it joined a group of top media and tech companies working with government officials to frame state and national-level privacy legislation.
The legislation to enhance privacy rights and consumer protection for residents of California will have far-reaching consequences for consumers, brands and ad agencies.
Social Reality stock rose 7% to $3.66 in afternoon trading.
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In Sacramento, California Senator Nancy Skinner, Assemblyman Miguel Santiago and other government officials sat down with SRAX Chief Operations Officer Kristoffer Nelson and other leading industry leaders to discuss the California Consumer Privacy Act of 2018, a bill passed in June last year to enhance privacy rights.
The law, which will only come into effect on January 1, 2020 requires companies that conduct business in California to implement structural changes to their privacy programs.
"As leaders in the digital advertising industry who cater to both brands and consumers, it's our obligatory duty to ensure all sides are represented when it comes to big decisions impacting the future of consumer data privacy," said Nelson. "As legislators evaluate potential amendments to the CCPA, it's important they understand how data is used in digital advertising, including the many procedural and technical safeguards that are standard in the industry and differentiate data used for digital advertising from more sensitive types of data collection and use.”
The company operates a digital marketing and data management platform, analyzing marketing data through the use of AI to identify core consumers. Big Token is the company’s blockchain-based identification graph technology platform.
Nelson said the company was a proponent of “sensible legislation that protects consumers” while allowing for commercial data use that powers the digital economy.
The Los Angeles-based company joined the Russell Microcap Index in June.
Contact Uttara Choudhury at [email protected]