Just as companies are reaching the straightway in their efforts to get ready to comply with the California Consumer Privacy Act (“CCPA”) by January 1, Nevada has burst ahead with a privacy law that will take effect before the CCPA. On May 29, 2019, Nevada Governor Steve Sisolak signed SB 220 into law, amending Nevada’s existing law that requires an operator of an Internet website or online service to provide a privacy notice to consumers detailing certain of the operator’s privacy practices; SB 220 goes into effect on October 1, 2019.1 SB 220 allows consumers to opt-out of operators of Internet websites and online services selling personally identifiable information to other entities for monetary consideration and will require both legal and operational changes for businesses. Operators, as defined by the law, must create a “designated request address” that allows consumers to submit requests prohibiting sale of information collected about the consumer, and operators must respond to the requests within 60 days.
Since its adoption last year, U.S. financial institutions have been confronted with the challenge of planning their compliance with the California Consumer Privacy Act (the “CCPA”)1. The CCPA becomes effective in two stages—January 1, 2020 and July 1, 2020 (or possibly sooner depending upon the date the California Attorney General adopts implementing regulations).2Regrettably, considerable confusion exists within the financial industry about the scope of the CCPA and the obligations it imposes on financial institutions.In an effort to provide our financial intermediary clients and friends with a workable summary of a financial institution’s obligations—and in particular for financial institutions that do not have a physical presence in California—this Alert is intended to assist in identifying coverage considerations, and provide a practical approach to the development of a project plan that will demonstrate reasonable compliance with the CCPA’s admittedly ambiguous set of requirements and obligations.
On Thursday, March 16, 2019, the California Senate Appropriations Committee held in Committee SB 561, which would have greatly expanded the private right of action (i.e., the ability to bring private class actions) available under the California Consumer Privacy Act (“CCPA”). SB 561 was introduced in February by California Attorney General (“AG”) Xavier Becerra and Senator Hannah-Beth Jackson. Notably, the bill sought to amend the existing private right of action to cover all violations of the CCPA, as opposed to merely data breaches. Additionally, the bill would have discontinued the 30-day cure period, whereby businesses were immunized from penalization by the AG to the extent they were able to cure an alleged violation within 30-days’ notice thereof, and would have eliminated businesses’ and third parties’ entitlement to seek interpretive guidance regarding compliance from the AG (and instead would authorize the AG to publish general guidance).
As companies were getting up-to-speed on the effects of the European Union’s General Data Protection Regulation (GDPR) last year, California quickly enacted its own privacy law, the California Consumer Privacy Act (“CCPA” or “Act”) last June. We address below the high risk associated with the CCPA and its interaction with regulations in key U.S. industries. The fast-passed legislation was designed to avoid a November 2018 ballot initiative on the subject, and was plagued by errors and ambiguities that require robust clarification. The Act’s take-away, however, was abundantly clear – California consumers have a right to know what personal data companies are collecting and are empowered to bring a private right of action for a data breach (and even potentially for other violations of the Act).
Although numerous attempts have been made to pass a comprehensive U.S. privacy law over the years, this one might actually succeed. Efforts have begun on multiple fronts. From Senate Commerce Committee hearings to several federal agencies vying for which will lead a federal regulatory effort, privacy is a hot topic in Washington, DC. Businesses should take immediate action to enter the discussions if they have not already done so. Comments on a proposed federal framework are due October 26, 2018. The Commerce Committee will hold additional hearings in October. Industry is coming to the table in an attempt to avoid facing a jumble of inconsistent state privacy laws.
By: Joseph Lynyak, Robert Cattanach, and Sam Bolstad 1. Introduction On June 28, 2018, the California Legislature unanimously passed, and the Governor immediately signed, a sweeping expansion of data privacy protections for residents of California.1 Assembly Bill No. 375, entitled the “California Consumer Privacy Act of 2018” (the “CCPA”), goes far beyond current U.S. privacy protections,… Read More
Financial institutions that are grappling with how the European Union’s General Data Protection Regulation (“GDPR”)may impact their U.S. operations should also be keeping a close eye on the California Consumer Privacy Act of 2018 (“CCPA”). The CCPA, or Assembly Bill (“AB”) No. 375, which was passed on June 28, 2018 and is set to take effect in 2020, mirrors some GDPR protections by providing California residents greater control over the dissemination of their personal data, including the option of barring companies from selling their data.