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Effective January 1, 2020, the California Consumer Privacy Act (CCPA) imposes comprehensive consumer privacy requirements on a vast array of businesses.[1] Although some provisions are similar to the EU’s General Data Protection Regulation (GDPR), businesses should be aware that compliance with GDPR does not equate to compliance with the CCPA.
What is being done to address the flaws in the CCPA?
Various business groups, including the California Chamber of Commerce, are reviewing the provisions of the CCPA, identifying issues, and determining the legislative strategy for addressing those issues in the 2019-20 legislative session. Each business should review the provisions of the CCPA, identify issues, and ensure that those issues are being discussed as part of the larger cleanup effort.
When does the CCPA become effective?
Ordinarily, a statute is prospective unless the Legislature expresses its intent otherwise. The CCPA expressly states that it is operative on January 1, 2020, although enforcement of its provisions by the Attorney General may be delayed to July 1, 2020.
That being said, some provisions of the CCPA have generated significant confusion regarding when companies must begin taking actions to comply with the Act. For example, the CCPA generally requires a company to disclose details about personal information collected and sold about a consumer in the preceding 12 months. Thus, an issue has arisen whether the provisions apply retroactively to the 12 months preceding January 1 (or July 1), 2020- which would require disclosure of actions occurring in 2019, prior to the operative date of the bill. While regulations or cleanup legislation may clarify the obligations imposed by the CCPA, it is likely that many ambiguities will remain.
What is happening with the AG regulatory process?
The California Attorney General’s office has officially announced that they will be promulgating regulations and soliciting broad public participation to further the purposes of the CCPA. Among other things, those regulations seek to provide guidance to businesses for how to comply with the Act. NIELSEN MERKSAMER will be actively engaged in the AG’s rulemaking process with the objective of developing compliance pathways for the business community.
Individuals and businesses seeking to receive notifications regarding the rulemaking activities can sign up on the Attorney General’s CCPA webpage:
https://www.oag.ca.gov/privacy/ccpa.
For additional information, compliance questions, or advice regarding the CCPA, contact BENJAMIN PALMER ([email protected]) or KURT ONETO ([email protected]) at 916-446-6752.