By Ethan Forrest

For the first time, California Attorney General Kamala Harris has announced a privacy breach settlement that requires the defendant company to create a “chief privacy officer” position to oversee compliance with privacy laws.

The company in question is Houzz Inc., a popular online platform for home design and décor.  Attorney General Harris

On Wednesday, a federal judge in the Central District of California dismissed Humana Pharmacy Inc.’s motion to dismiss a putative class action suit alleging the company illegally recorded telephone calls with customers, finding that the California Invasion of Privacy Act (“CIPA”) does not exempt quality assurance recordings.

In its motion to dismiss, Humana argued that CIPA exempts “service observing,” or a business’s recording of calls between its employees and customers for quality assurance purposes.  Judge Josephine Staton Tucker rejected Humana’s interpretation of the statute and further found that plaintiff’s complaint did not allege that Humana recorded the call for service observing purposes, refusing to read such purpose into the allegations.

The court also rejected Humana’s contention that plaintiff’s complaint failed to allege that the company did not provide proper notice to him at the outset that the call was being recorded. The court held that plaintiff’s allegation that he was not warned “at any point during the telephone conversation” was sufficient at the pleadings stage, but acknowledged that the issue could be raised again in a motion for summary judgment. 

Continue Reading Humana’s Quality Assurance Calls Not Exempted From CIPA