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In California Privacy Protection Agency et al. v. The Superior Court of Sacramento County (case number C099130), the Third Appellate District of the California Court of Appeal returned authority to the California Privacy Protection Agency (CPPA) to enforce the regulations promulgated under California’s groundbreaking consumer data privacy law, the California Consumer Privacy Act (CCPA, as amended by the California Privacy Rights Act (CPRA)). 

The California Chamber of Commerce had challenged the CPPA’s timeline for enforcing its newly finalized regulations, arguing that the agency had missed statutory deadlines, which, in their view, should delay the enforcement start date a full year after their promulgation—to March 29, 2024. The regulations in question, which address aspects such as privacy notice requirements and the handling of browser signals for opt-out requests, are part of the broader framework established by the CCPA. The lower court agreed and temporarily stripped the CPPA of its enforcement capabilities.

The appellate court overturned that decision. The court found no explicit mandate in the law that would necessitate delaying enforcement until a year after the finalization of the regulations, as the Chamber had contended. Consequently, the CPPA can now immediately begin enforcing the regulations finalized last March without the previously imposed delay.Continue Reading California Appeals Court Empowers Privacy Agency to Immediately Enforce CCPA Regulations

In today’s rapidly changing technological landscape, artificial intelligence (AI) is making headlines and being discussed constantly. To be sure, AI provides a powerful tool to nonprofits in creating content and exploiting it for countless cost-effective purposes. As nonprofit executives, you may wonder how AI intersects with intellectual property and data privacy law and how it…

ChatGPT got the early press, and every day we learn of new generative artificial intelligence products that can create new and creative visual and text responses to human input. Following on ChatGPT’s fame, Google’s Bard and Microsoft’s Bing are now grabbing some of the spotlight, but these are merely a few of the hundreds if not thousands of generative artificial intelligence products currently available or in development—there is no question that generative AI is here to stay. Indeed, social media and other platform companies—TikTok (using AI to create or add effects to images), Instacart (to create shopping lists and answer food questions), and Shopify (to generate product descriptions), to name a few—are already integrating AI into their services.

Among all the questions begged by this innovative technology are some critical issues concerning privacy. While only time will tell the extent of the privacy issues, some of the concerns are already clear.
Continue Reading I Always Feel Like AI Is Watching Me: Artificial Intelligence and Privacy

It was my pleasure to join Farella exempt organizations partner and host of the EO Radio Show podcast, Cynthia Rowland, for a discussion on privacy laws and how they affect information collection and online activities by nonprofits.

We begin our conversation with some basic background on when a nonprofit needs a privacy policy on its website and how to think about what should be posted on the website, and where.

The current privacy requirements in California do not currently apply to most nonprofit organizations. But there are a number of reasons a nonprofit might want to think about collecting and protecting the data as if it were subject to such privacy requirements.
Continue Reading Privacy Policy Best Practices for Nonprofits

The FTC recently issued a proposed order that would settle an enforcement action against Drizly, LLC and its co-founder and CEO, James Rellas, arising from data breaches in 2018 and 2020 that affected over 2.5 million customers. The FTC’s proposed order is unusual in that applies to Rellas personally. The order requires Rellas to implement various data security practices at any company he owns or oversees in the next decade, even if Rellas moves to a company unrelated to Drizly.

Let’s take a look at the data security breaches that led to the FTC’s enforcement action and some of the key takeaways that result from the FTC’s unusual proposed order.
Continue Reading Cybersecurity Regulation: Key Takeaways From an Unusual FTC Order That Will Follow CEO for a Decade

Governor Newsom recently signed into law AB 2273, the California Age-Appropriate Design Code Act (CA AADCA), making California the first state to pass broad privacy protections for children.

The CA AADCA is modeled after the UK’s Age-Appropriate Design Code (UK AADCA) which came into effect last year. While the two acts are not identical, businesses that conformed to the UK AADCA will see many similarities with the CA AADCA. Both laws seek to provide higher default privacy protections for children and set forth various requirements for covered businesses.
Continue Reading California Passes Landmark Privacy Protections for Children With Big Implications for Online Providers

Since the California Consumer Privacy Act (“CCPA”) was passed in 2018, employers have been watching carefully to see how the law will apply to data collected and maintained about their employees. Up until now, employment data had been exempted from most of the CCPA’s requirements. But the new amendments to the CCPA embodied in the California Privacy Rights Act (“CPRA”) come into effect on January 1, 2023, and that, coupled with the fact that the legislature failed to extend the employer exemptions, means that many categories of human resources data will be subject to the requirements of the law.[1]

The Current CCPA Employer Exemptions Are Expiring

As it stands (and through the end of 2022), covered employers are only obligated to notify employees of the categories of data being collected and the purposes for which the data will be used. In the event of a security breach involving employee data, employers are required to notify affected individuals and could be liable for statutory damages. In response to these requirements, most covered employers developed privacy notices with the required disclosures and reviewed their data security policies and protocols to ensure consistency with best practices.

But starting in 2023, employee data will be treated as any other commercial information, and covered employers will need to add employee and human resources data to their ongoing compliance efforts. Indeed, under the CCPA, “personal information” is defined broadly to include information that “identifies, relates to, describes, is reasonably associated with, or could reasonably be linked, directly or indirectly, with a particular consumer household.” Cal. Civ. Code § 1798.140(o)(1). In the employee or human resources context, personal information could include an employee’s contact information, insurance and benefits elections, bank and direct deposit information, emergency contacts, dependents, resume and employment history, performance evaluations, wage statements, time punch records, stock and equity grants, compensation history, and many other forms of data routinely collected in the context of the employment relationship. Moreover, the CPRA introduces a new concept of “sensitive personal information” (such as financial information, social security numbers, communications content, health information, and biometrics) that must be considered and addressed by the employer.

New Requirements Take Effect in 2023

So what does this mean for employers? First, employers must prepare and provide a privacy notice to an employee (or a job applicant since such applicant is likely providing personal information) at or before the time personal information is collected. This could mean including a privacy policy (and a click-through mechanism) on any online application site, in the employee handbook, and/or on internal websites. The privacy policy is likely to be similar to the online privacy policy the employer includes for consumers, though it will need to be revised to accurately reflect the categories of personal information collected (along with the length of time the employer intends to retain data in each category), as well as the categories of third parties with whom such information will be shared (e.g., payroll service providers, etc.).
Continue Reading Employee Data Under the CCPA: Expiration of Employer Exemptions Requires Compliance as of January 1, 2023

As companies prepare for the provisions of the California Privacy Rights Act (“CPRA”) to come into effect in January 2023, California Office of Attorney General (“OAG”) has signaled that companies should not wait to start complying with the Global Privacy Control (“GPC”). A recent lawsuit and subsequent $1.2 million settlement by the OAG against French e-commerce company Sephora, Inc. that targeted compliance with the GPC. In announcing the settlement, the OAG also made it known that it had “also sent notices today to a number of businesses alleging non-compliance relating to their failure to process consumer opt-out requests made via user-enabled global privacy controls, like the GPC” because, “[u]nder the CCPA, businesses must treat opt-out requests made by user-enabled global privacy controls the same as requests made by users who have clicked the ‘Do Not Sell My Personal Information’ link.” In other words, the OAG is taking the position that the California Consumer Privacy Act (“CCPA”) already requires implementation of the GPC.
Continue Reading California AG Signals Enforcement of the Global Privacy Control Under the CCPA

A few weeks ago on this blog, we addressed some of the legal issues that have arisen for Zoom, as it becomes a significant part of American daily life during the COVID-19 pandemic.

Among those legal issues was an inquiry by the New York State Attorney General into Zoom’s privacy practices, and particularly into its measures to detect and prevent hackers or other outside parties attempting to observe or interfere with online meetings. In several incidents, the third parties interrupted meetings with disturbing messages or images. In fact, two other states – Connecticut and Florida – joined the New York probe after state government officials fell victim to “zoombombing.” Based on perceived security flaws, on April 6, 2020, the New York City Department of Education implemented a ban on public schools’ use of Zoom for classes and educational purposes.
Continue Reading Zoom Successfully Addresses New York’s Privacy and Security Concerns