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The Ninth Circuit Court of Appeals last week reversed a lower court ruling and said that portions of a strong California privacy law are preempted by the Federal Fair Credit Reporting Act.

Ruling on an appeal from several financial services organizations, including the American Bankers Association and the Financial Services Roundtable, the court said the federal law preempted parts of the California privacy law known as SB 1 that would have required companies to obtain a consumer’s permission before sharing information between its affiliates.

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