The five members of the California Privacy Protection Agency (“CPPA”) were announced today. The members – who were appointed by Governor Newsom, Attorney General Becerra, Senate President pro Tempore Atkins, and Assembly Speaker Rendon – will lead the new agency, which will have rulemaking and enforcement authority under the California Privacy Rights Act (“CPRA”).
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CCPA
Court Dismisses CCPA Claim Against Google
Last week, a federal district court in San Francisco dismissed a claim under the California Consumer Privacy Act (“CCPA”). The plaintiff alleged that Google had collected personal information without complying with the CCPA’s notice and consent requirements. The court held that the CCPA’s private right of action does not extend to these provisions of the law. It appears that this is the first time a court expressly reached this conclusion. The case is McCoy v. Alphabet, No. 20‑cv‑05427 (N.D. Cal. Feb. 2, 2021).
For context, the plaintiff alleged that Google used an internal program called “Android Lockbox” on its Android operating system to monitor and collect data from Android users as they used non-Google apps on their phones. The alleged data collection included when and how often these third-party apps were used and the amount of time users spent on the third-party apps. Based on these allegations, the plaintiff asserted eleven different claims. Among these was a claim that Google violated the CCPA by failing to comply with the law’s requirements related to notice and consent.
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The Gift of an Updated Privacy Policy
As the year comes to a close, a reminder that the California Consumer Privacy Act requires companies to update their privacy policies annually. Consequently, as you get ready to spread the holiday cheer, make sure your privacy policy gets some attention as well.
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Californians Approve Ballot Initiative Modifying the California Consumer Privacy Act
Voters in California approved Proposition 24, which updates the California Consumer Privacy Act (“CCPA”) just a few months after the landmark regulations implementing the privacy law went into effect. As we have previously explained, the California Privacy Rights Act (“CPRA”) will change the existing CCPA requirements in a number of ways, including limiting the sharing of personal information for cross-context behavioral advertising and the use of “sensitive” personal information, as well as creating a new correction right. It also establishes a new agency to enforce California privacy law. The key provisions of the bill will not go into effect until January 1, 2023, providing much-needed time to clarify the details and for businesses to adjust their CCPA compliance approaches to account for the additional requirements.
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California Attorney General Releases New Proposed Modifications to California Consumer Privacy Act Regulations
On Monday, the California Attorney General (“AG”) proposed a third set of modifications to the recently enacted California Consumer Privacy Act (“CCPA”) regulations. Interested parties have until October 28 to file comments in response.
These proposed modifications are the latest effort in an extensive rulemaking process that has lasted more than a year. Most recently, on August 14, the California Office of Administrative Law (“OAL”) formally approved the AG’s initial set of CCPA regulations, which went into effect immediately. In approving the regulations, the OAL deleted five provisions that had been included in the version the AG submitted in June, but indicated that the AG could revise and resubmit those subsections for approval in the future. The latest modifications are largely focused on reviving several of these last-minute removals.
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California Legislature Adopts CCPA Exemption for Information Deidentified in Accordance with the HIPAA Privacy Rule
On September 1, the California legislature passed AB 713, a bill that creates a new healthcare-related exemption under the California Consumer Privacy Act of 2018 (“CCPA”). All provisions of the bill will take effect immediately to prevent the CCPA from “negatively impact[ing] certain health-related information and research,” except for the required contractual provisions described below.
Under the new exemption, information is not subject to the CCPA’s obligations if it meets both of the following requirements:
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CCPA Update: Final Rulemaking Package Submitted to OAL
The California Attorney General (“AG”) has submitted his proposed final CCPA regulations to the California Office of Administrative Law (“OAL”).
The proposed final rules substantively are the same as the draft rules released for public notice on March 11, which we summarized previously here. However, the AG’s responses to comments and Final Statements of Reasons accompanying the final rulemaking package provide guidance on the AG’s position on key ambiguities under the CCPA. For example, in declining to clarify whether the use of website cookies shared with third parties is a “sale,” the AG emphasized that, “[w]hether the particular situations raised in the comments constitutes a “sale” raises specific legal questions that would require a fact-specific determination, including whether or not there was monetary or other valuable consideration involved, the consumer directed the business to intentionally disclose the personal information, and whether the parties involved were service providers.” The response thus is consistent with a determination that there is no “sale” of personal information based on specific facts and circumstances. Other commentary provides guidance on such topics as the AG’s understanding of financial incentive provisions, obligations to respond to access and deletion requests, and when the law is applicable.
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California AG Releases New Draft CCPA Regulations
The California Attorney General has released both clean and redlined versions of proposed modifications to the draft implementing regulations for the California Consumer Privacy Act (“CCPA”). Below is a high-level overview of some key changes:
- Service Providers. The modified draft restricts a service provider from processing the personal information it
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State Privacy Trends to Watch in 2020
While all eyes are on California following the implementation of the California Consumer Privacy Act (“CCPA”) earlier this month and the start of enforcement later this year, other states are off to the privacy races already. On Monday, Washington State became the latest entrant with the introduction of a revised Washington Privacy Act.
From the proposals introduced so far this year in Washington, Virginia, New Hampshire, Illinois, and Nebraska, it is clear that states will continue to follow last year’s trend of varied approaches to state privacy legislation. While there are variations in state proposals, many of the bills seem to fall into three molds.
CCPA Copycats
The first category of proposals closely track the CCPA. Some of these bills, like last year’s Mississippi Consumer Privacy Act, are essentially identical to the CCPA or have minor changes. These bills may lack changes made by the September amendments to the CCPA. For example, the CCPA originally regulated as personal information all information “capable” of being associated with a consumer or household, whereas California’s definition is now tied to information “reasonably capable” of being associated with a consumer or household. The September amendments also eliminated limitations on the scope of publicly available information and added exceptions for employment or business-to-business related data. These differences were notable in the New Hampshire legislation recently introduced, which was otherwise in line with the CCPA.
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Four Federal Privacy Trends to Watch in 2020
Heading into the new year, California Consumer Privacy Act (“CCPA”) readiness remains top of mind for many businesses, especially as continued developments, such as the California Attorney General’s forthcoming implementing regulations, may implicate compliance efforts. State legislation will likely move forward in 2020. At the same time, however, companies should not lose sight of legislative proposals at the federal level, which have the potential to reshape the privacy landscape in the United States and even preempt state laws such as the CCPA. The question of whether a federal privacy bill can pass in 2020 remains an open one. But regardless of whether a bill will actually pass, the legislative proposals that are emerging this year likely will shape the contours of federal legislation that could move toward becoming law.
Although the issues of preemption and a private right of action dominated the federal privacy conversation last year, four legislative trends emerged in 2019 that also may become key components of a federal privacy framework:
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