Tag: California Consumer Privacy Act

California Voters approve new Privacy Legislation CPRA

20. November 2020

On 3 November 2020, Californian citizens were able to vote on the California Privacy Rights Act of 2020 (“CPRA”) in a state ballot (we reported). As polls leading up to the vote already suggested, California voters approved the new Privacy legislation, also known as “Prop 24”. The CPRA was passed with 56.2% of Yes Votes to 43.8% of No Votes. Most provisions of the CPRA will enter into force on 1 January 2021 and will become applicable to businesses on 1 January 2023. It will, at large, only apply to information collected from 1 January 2022.

The CPRA will complement and expand privacy rights of California citizens considerably. Among others, the amendments will include:

  • Broadening the term “sale” of personal information to “sale or share” of private information,
  • Adding new requirements to qualify as a “service provider” and defining the term “contractor” anew,
  • Defining the term “consent”,
  • Introducing the category of “Sensitive Information”, including a consumer’s Right to limit the use of “Sensitive Information”,
  • Introducing the concept of “Profiling” and granting consumers the Right to Opt-out of the use of the personal information for Automated Decision-Making,
  • Granting consumers the Right to correct inaccurate information,
  • Granting consumers the Right to Data Portability, and
  • Establishing the California Privacy Protection Agency (CalPPA) with a broad scope of responsibilities and enforcement powers.

Ensuring compliance with the CPRA will require proper preparation. Affected businesses will have to review existing processes or implement new processes in order to guarantee the newly added consumer rights, meet the contractual requirements with service providers/contractors, and show compliance with the new legislation as a whole.

In an interview after the passage of the CPRA, the initiator of the CCPA and the CPRA Alastair Mactaggard commented that

Privacy legislation is here to stay.

He hopes that California Privacy legislation will be a model for other states or even the U.S. Congress to follow, in order to offer consumers in other parts of the country the same Privacy rights as there are in California now.

The CCPA is not enough: Californians will vote on the CPRA

28. October 2020

On 3 November 2020, the day of the US Presidential Election, Californian citizens will also be able to vote on the California Privacy Rights Act of 2020 (“CPRA”) in a state ballot. The CPRA shall expand Califonian consumers’ privacy rights given by the California Consumer Privacy Act of 2018 (“CCPA”) which only came into effect on 2 January 2020.

The NGO “Californians for Consumer Privacy”, led by privacy activist Alastair Mactaggart, initiated the upcoming state ballot on the CPRA. Mactaggart’s NGO already qualified for a state ballot on the adoption of the CCPA by collecting over 629,000 signatures of California citizens in 2018. However, the NGO dropped the proposal in 2018 after California state legislators persuaded the intitiators that they will pass the CCPA through the legislative process. But because several significant amendments to the original proposal were passed during the legislative process, the NGO created the new CPRA initiative in 2020. This time, the group submitted more than 900,000 signatures. The CPRA is supposed to expand on the provisions of the CCPA. In case the CPRA is approved by California voters on November 3rd, it could not be easily amended and would require further direct voter action. Most provisions of the CPRA would become effective on 1 January 2023 and would only apply to information collected from 1 January 2022.

Some of the key provisions of the newly proposed CPRA seem to draw inspiration from the provisions of the European General Data Protection Regulations (“GDPR”) and include the establishment of an enforcement agency (the “California Privacy Protections Agency”), explicitly protecting “Sensitive Personal Information” of consumers and granting the right to rectify inaccurate personal information. The CPRA would furthermore require businesses to abide to information obligations comparable to those required by Art. 12-14 GDPR.

As the day of the state ballot is fast approaching, recent polls suggest that the CPRA will likely pass and complement the already existing CCPA, forming the US’ strictest privacy rules to date.

More US States are pushing on with new Privacy Legislation

3. January 2020

The California Consumer Privacy Act (CCPA) came into effect on January 1, 2020 and will be the first step in the United States in regulating data privacy on the Internet. Currently, the US does not have a federal-level general consumer data privacy law that is comparable to that of the privacy laws in EU countries or even the supranational European GDPR.

But now, several other US States have taken inspiration from the CCPA and are in the process of bringing forth their own state legislation on consumer privacy protections on the Internet, including

  • The Massachusetts Data Privacy Law “S-120“,
  • The New York Privacy Act “S5642“,
  • The Hawaii Consumer Privacy Protection Act “SB 418“,
  • The Maryland Online Consumer Protection Act “SB 613“, and
  • The North Dakota Bill “HB 1485“.

Like the CCPA, most of these new privacy laws have a broad definition of the term “Personal Information” and are aimed at protecting consumer data by strenghtening consumer rights.

However, the various law proposals differ in the scope of the consumer rights. All of them grant consumers the ‘right to access’ their data held by businesses. There will also be a ‘right to delete’ in most of these states, but only some give consumers a private ‘right of action’ for violations.

There are other differences with regards to the businesses that will be covered by the privacy laws. In some states, the proposed laws will apply to all businesses, while in other states the laws will only apply to businesses with yearly revenues of over 10 or 25 Million US-Dollars.

As more US states are beginning to introduce privacy laws, there is an increasing possiblity of a federal US privacy law in the near future. Proposals from several members of Congress already exist (Congresswomen Eshoo and Lofgren’s Proposal and Senators Cantwell/Schatz/Klobuchar/Markey’s Proposal and Senator Wicker’s Proposal).