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California Businesses Beware : The California Consumer Privacy Act ( CCPA ) Is Here and It Is Only the Beginning

The California Consumer Privacy Act (CCPA) Is Here and It ......1. Legislative Background – and What’s Next 2. CCPA Enforcement and Litigation 3. Operational Challenges and Trends

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Page 1: The California Consumer Privacy Act (CCPA) Is Here and It ......1. Legislative Background – and What’s Next 2. CCPA Enforcement and Litigation 3. Operational Challenges and Trends

California Businesses Beware:The California Consumer Privacy Act (CCPA)

Is Here and It Is Only the Beginning

Page 2: The California Consumer Privacy Act (CCPA) Is Here and It ......1. Legislative Background – and What’s Next 2. CCPA Enforcement and Litigation 3. Operational Challenges and Trends

Tara ChoPartner, Privacy and CybersecurityWomble Bond Dickinson (US) LLP

[email protected]

Kristin Walker-ProbstPartner, Businesss Litigation

Womble Bond Dickinson (US) [email protected]

Nicole SuAssociate, Business Litigation

Womble Bond Dickinson (US) [email protected]

Meet the Panelists

Robert KangProfessor, Loyola Law School

[email protected]

Robert TaylorAssociate General Counsel

J2 Global, Inc.

Page 3: The California Consumer Privacy Act (CCPA) Is Here and It ......1. Legislative Background – and What’s Next 2. CCPA Enforcement and Litigation 3. Operational Challenges and Trends

AgendaOur Discussion Will Cover:

1. Legislative Background – and What’s

Next

2. CCPA Enforcement and Litigation

3. Operational Challenges and Trends

Page 4: The California Consumer Privacy Act (CCPA) Is Here and It ......1. Legislative Background – and What’s Next 2. CCPA Enforcement and Litigation 3. Operational Challenges and Trends

Legislative Background –

and What’s Next

Page 5: The California Consumer Privacy Act (CCPA) Is Here and It ......1. Legislative Background – and What’s Next 2. CCPA Enforcement and Litigation 3. Operational Challenges and Trends

California Consumer Privacy ActTimeline and Enforcement

2018 2019 2020

MarchCambridge AnalyticaFacebook

JuneABA 375 signed into law

MayCA Data Privacy Measure Ballot Initiative collects 600,000 signatures

GDPR in effect

March - MayPublic Forums

MayCA Legislature considers amendments

December 6AG provides proposed text of regulations

October 10AG provides proposed

text of regulations

JanuaryCCPA in effect

JulyDue date for publication of regulations and AG enforcement

NovemberCPRA (“CCPA 2.0”)

ballot vote

Page 6: The California Consumer Privacy Act (CCPA) Is Here and It ......1. Legislative Background – and What’s Next 2. CCPA Enforcement and Litigation 3. Operational Challenges and Trends

California Consumer Privacy ActWho Does It Apply To?

For-profit companies doing business in CA that collect personal information about CA residents AND:

OR

OR

Annual gross revenue >25M;

Buys, sells or shares data of > 50K consumers,

households or devices;

Derives >50% annual revenue from selling

personal information.

Page 7: The California Consumer Privacy Act (CCPA) Is Here and It ......1. Legislative Background – and What’s Next 2. CCPA Enforcement and Litigation 3. Operational Challenges and Trends

November 2020 BallotThe CPRA Takes it Further

Removes 30-day cure period for breach and non-compliance

Additional rights and restrictions for sensitive data

Extends partial exemptions for B2B and employee data

Stiffer fines relating to minors

CA Privacy Protection Agency

Right to restrict use and disclosure; extends lookback period

Page 8: The California Consumer Privacy Act (CCPA) Is Here and It ......1. Legislative Background – and What’s Next 2. CCPA Enforcement and Litigation 3. Operational Challenges and Trends

Enforcement and Litigation

Page 9: The California Consumer Privacy Act (CCPA) Is Here and It ......1. Legislative Background – and What’s Next 2. CCPA Enforcement and Litigation 3. Operational Challenges and Trends

CCPA Enforcement Process

Notification letters went out July 1

AG did not disclose companies

Complaints based on social media and other investigations

Priority on data breaches affecting large populations,egregious conduct,vulnerable populations

Beginning July 1, 2020

Page 10: The California Consumer Privacy Act (CCPA) Is Here and It ......1. Legislative Background – and What’s Next 2. CCPA Enforcement and Litigation 3. Operational Challenges and Trends

10

CCPA LitigationAlleged Conduct Violating the CCPA

27 Cases(73%)

15 Cases(41%)

6 Cases(16%)

0

5

10

15

20

25

30

Data Breach/Unauthorized Access

Lack of Notice at Collection

No Opt-Out

*Data encompasses all cases filed in California since January 2020

Page 11: The California Consumer Privacy Act (CCPA) Is Here and It ......1. Legislative Background – and What’s Next 2. CCPA Enforcement and Litigation 3. Operational Challenges and Trends

11

28 Cases(76%)

36 Cases(97%)

15 Cases(41%)

4 Cases(11%)

8 Cases(22%)

0

5

10

15

20

25

30

35

40 Consumer Privacy Act

Unfair Competition Law

Consumer's Legal Remedies Act

Customer Records Act

Confidentiality of Medical InformationAct

CCPA LitigationAlleged Violations of CA Statutory Counts

*Data encompasses all cases filed in California since January 2020

Page 12: The California Consumer Privacy Act (CCPA) Is Here and It ......1. Legislative Background – and What’s Next 2. CCPA Enforcement and Litigation 3. Operational Challenges and Trends

What Keeps You Up At Night?Operational Challenges and Trends

Page 13: The California Consumer Privacy Act (CCPA) Is Here and It ......1. Legislative Background – and What’s Next 2. CCPA Enforcement and Litigation 3. Operational Challenges and Trends

Questions?https://www.womblebonddickinson.com/us/insights/alerts/ccpa-task-force