On January 1, 2020, the California Consumer Protection Act (Act) became effective securing private rights of action for California consumers and residents, and separate opportunities for the state to bring legal action against your business. In our blog published on October 4, 2019 and found here, we provide an overview of the Act, your obligations as a business owner, and the consequences for failing to comply. In a nutshell, the Act provides consumers with i) the right to know what data is being collected about them while they are on your website, ii) how to request that their data be deleted from your data collection process, and iii) how to opt out of the sale of their data to third parties.
There are two important details for you to know and prepare for in your business this week:
The State Attorney General’s office has established fines of up to $2,500 per violation and up to $7,500 per violation if the violation is deemed intentional. Businesses which are in violation of the Act will receive notices from the Office of the California Attorney General and be given a 30-day period to correct such violations. Failure to comply with this Act risks regulatory action and fines. In addition, the Act provides consumers with individual rights, outside of what the State’s Office may bring, to sue in court.
Silicon Valley giants like Zoom have already been sued under the Act for data breaches and violations of consumers’ personal information. Do not leave your business vulnerable to regulatory or private litigation. See below for our recommended next steps for your business.
Note that the law is likely to be amended as the state and courts interpret the law overtime. You may have ongoing compliance requirements.
We at Garcia & Gurney are happy to assist you and can be reached at (925) 468-0400. You can also contact us by using our online form.
Disclaimer: The contents of this article should not be construed as legal advice. This article is not an exhaustive list of issues that may arise in the operations of a business. Businesses should seek the assistance of an attorney who will analyze multiple factors unique to each kind and size of business.
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