The California State Senate Tuesday approved a bill that is considered to be the strongest consumer financial privacy standard in the nation. The bill requires insurance companies, banks and other businesses to get customer permission before selling or sharing personal data with affiliates or third party companies for any purpose other than to complete a transaction initiated by the customer.

Reuters reported that, “Consumer groups said the passage of the bill was a major victory for all people who have bank accounts or credit cards, and are often unaware of the extent to which their financial information is openly shared among different companies.”

The bill now moves on to Gov. Gray Davis, who has already said he will sign it.

(via Reuters)