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Significant New CCPA Compliance Requirements Likely on the Way

On August 29, 2023, the California Privacy Protection Agency (CPPA) posted discussion drafts of its forthcoming regulations on cybersecurity audits and risk assessments as part of the materials for its September 8, 2023, public board meeting. These draft regulations are expected to eventually become part of the CPPA’s second rulemaking package under the California Consumer Privacy Act (CCPA) since the CCPA’s amendment by the California Privacy Rights Act. The CPPA has not yet started its formal rulemaking process for cybersecurity audits and risk assessments, and it has made clear that these draft regulations are meant to facilitate CPPA Board discussion and public participation. Nevertheless, the obligations set forth in the draft rules are extensive and provide an initial window into the onerous new compliance requirements. Notable requirements put forth for discussion under the draft regulations include:Continue Reading CPPA Posts Draft Rules on Cybersecurity Audits and Risk Assessments

In the absence of meaningful progress from the U.S. Congress on passing a federal comprehensive privacy law, state legislatures have been busy this year passing their own solutions and adding to the complexity of U.S.

Continue Reading U.S. State Privacy Law Update: New Comprehensive Laws Coming in Indiana, Montana, Tennessee, and Florida

On January 27, 2023, the Colorado Attorney General’s (Colorado AG) office released the third version of its proposed draft rules (third draft) for the Colorado Privacy Act (ColoPA) based on public comments it received on…

Continue Reading Colorado Attorney General’s Office Releases Third Version of Draft Rules for Colorado Privacy Act: Key Takeaways

On September 15, 2022, the Federal Trade Commission (FTC) held an open Commission meeting that covered three agenda items: 1) a rulemaking on impersonation scams, 2) a policy statement on enforcement related to gig work, and 3) a staff report on dark patterns. While items (1) and (3) moved forward with a bipartisan 5-0 vote, the policy statement on the gig economy was adopted with a 3-2 vote along party lines. This alert provides some insight into the implications for future FTC activity in these areas.
Continue Reading Gig Economy, Dark Patterns, and Impersonation Scams: FTC Signals Priorities in Open Commission Meeting

On August 30, 2022, the California legislature passed the California Age-Appropriate Design Code Act (the Act). Modeled after the UK’s Age-Appropriate Design Code, California’s act drastically changes the landscape of online privacy and content availability for minors in California. The Act goes beyond the current federal protections of the Children’s Online Privacy Protection Act (COPPA) and could impose onerous new requirements on companies that were and were not previously covered by COPPA. These requirements include, among other things, estimating the ages of minors using the company’s online services; conducting detailed Data Protection Impact Assessments (DPIAs) for new and existing products; significantly restricting the collection, use, and sharing of minors’ personal information; and configuring default privacy settings to a “high level of privacy.” If the bill is signed into law by Governor Newsom, the Act would come into effect July 1, 2024.
Continue Reading California Legislature Passes Far-Reaching Online Privacy and Content Regulation Bill for Minors

On August 24, 2022, the California Attorney General (AG) announced the entry of a final judgment to resolve claims that makeup retailer Sephora violated the California Consumer Privacy Act (CCPA). Notably, this is the California AG’s first enforcement action resulting in a fine and settlement under the CCPA. The California AG alleged that Sephora violated the CCPA by failing to disclose that it was selling the personal information of California consumers through the use of third-party website advertising and analytics tools, failing to provide a “Do Not Sell My Personal Information” link for consumers to opt out of those sales, and failing to honor Global Privacy Control (GPC) signals as a means of opting out. As part of the relief, Sephora was ordered to pay a $1.2 million penalty and, among other things, implement a monitoring and reporting program to demonstrate its ongoing compliance with the CCPA.
Continue Reading California Attorney General Settles First-Ever CCPA Enforcement Action

Last week, the Federal Trade Commission (FTC) and the District Attorneys of Los Angeles County and Riverside County agreed to an order to settle claims against Frontier Communications Intermediate, LLC and its parent company, Frontier Communications Parent, Inc. (collectively, Frontier). The plaintiffs alleged that Frontier promised internet speeds that Frontier did not deliver. The order, approved by all Commissioners, contains far-reaching and, in some cases, novel relief, including an $8.5 million penalty, a requirement for customer-by-customer substantiation, an absolute prohibition on signing up of certain new customers, and a mandated $50-60 million investment in new technology.
Continue Reading FTC Takes Aggressive Action Against Internet Service Provider for Misrepresenting Internet Speeds