Law Commons^™

Cost-Based California Effects, Jens Frankenreiter

Scholarship@WashULaw

The “California Effect” is a recurring trope in discussions about regulatory interdependence. This effect predicts that businesses active in multiple jurisdictions sometimes adopt the strictest standards that they face in any jurisdiction globally, even if the law does not require global compliance. There is a substantial literature that assumes the existence of California Effects both at the interstate level in the United States and the international level. However, empirical evidence documenting their existence and strength is scarce. This paper investigates the existence of California Effects in data privacy law, a field in which these effects have been said to be …