In April, Rob Bonta became the new California Attorney General. In swift form, and not taking any summer break, he has made it clear that privacy and CCPA compliance is a priority, and that enforcement won’t be limited to a handful of requirements under the CCPA, as many previously believed.
With COVID-19 driving so much business online, like most people, I am increasingly seeing offers from companies vying for new customers to hand over my contact information in exchange for discounts or rewards. This includes businesses that seek to use personal information obtained through loyalty or rewards programs, those that offer price or service differences such as with free versus paid subscriptions to a service (e.g., music streaming), or those that simply want to increase their marketing reach and attract new consumers by offering a discount in exchange for personal information. There is really nothing new to these types of marketing strategies, but for companies that are subject to the California Consumer Privacy Act (CCPA), providing discounts, rewards or free-versus-paid services to California consumers has become trickier because the CCPA contains very specific – and quite stringent – obligations when it comes to financial incentives. The CCPA defines a “financial incentive” as a program, benefit, or other offering (including payments to consumers) related to the collection, retention, or sale of personal information – or, put simply, you give me your personal information and I will give you a discount code or rewards. Many businesses that are subject to CCPA, however, are not complying with the CCPA’s complex requirements regarding financial incentives. Failing to comply could spell trouble. Below we explain the challenges of implementing the CCPA’s requirements with respect to financial incentives. Continue Reading Providing Financial Incentives Under CCPA
Long gone are the days when companies could claim ownership in their employees’ data, at least in California. As our prior posts have indicated, the definition of “consumer” under the CCPA is extremely broad and extends to employees. A consumer is not only a customer or user of a business’ services, products or websites, but also a business’ employees, contractors and job applicants.
However, despite taking effect in January 1, 2020, the CCPA’s application is currently limited with regard to personal information of employees, contractors, and job applicants collected and used in the employment context. This hold delays application of some provisions of the CCPA with respect to personal information collected in the employment context (originally until January 1, 2021 and now as extended to January 1, 2022 or 2023 as set forth below), including the rights to access data and deletion of data. As a reminder, the exemption also only applies to the extent that the employer collects/uses the personal information in the context of its employment relationship and for employment purposes. Thus, any use of such personal information by an employer outside the scope of the strict employment relationship would remain covered under all of the provisions of the CCPA. For example, if an employer were to allow its insurance company to collect employee data in order to market other insurance services to those individuals, this would not be within the scope of employment and therefore subject to all of the consumer rights otherwise available under CCPA. Continue Reading Employee Data under CCPA
During a recent keynote presentation with the IAPP following the July 1 enforcement deadline of the CCPA, Stacey Schesser, Supervising Deputy Attorney General for the State of California (“Deputy AG”), provided a bit of a roadmap for CCPA enforcement actions from the California Attorney General (“AG”) that are both currently underway and expected in the near future. Continue Reading CCPA Enforcement: What to Expect Next
The California Attorney General’s final proposed regulations under CCPA (“Regulations”) have been submitted, and pending approval by the California Office of Administrative Law, will soon become enforceable by law. One often overlooked requirement of the CCPA is the obligation of covered businesses to provide notices that are “reasonably accessible.” All drafts of the Regulations have provided more detail about the accessibility requirement contained in the CCPA, and the final Regulations make clear that for notices provided online, businesses must follow generally recognized industry standards, such as the Web Content Accessibility Guidelines, version 2.1 (WCAG) from the World Wide Web Consortium. While companies have largely focused on updating the language or substance of their notices to comply with CCPA, this requirement as to form has, by and large, slipped through the cracks, but is certain to generate some discussion (if not litigation) in coming months.
By way of background, the Americans with Disabilities Act (ADA) requires, among other things, that places of “public accommodation” remove barriers to access for individuals with disabilities. While this has long been considered the rule for physical establishments, including privately-owned, leased or operated facilities like hotels, restaurants, retail merchants, health clubs, sports stadiums, movie theaters, and so on, virtual accessibility has been much less consistent, and generally the exception rather than the norm. In fact, web accessibility hardly ever appears on businesses’ radars, due perhaps to a very short-sighted perception of what, in fact, qualifies as a disability as well as a lack of overall guidance.
Web accessibility means ensuring that websites, mobile applications, and other virtual platforms can be used by everyone, including those with disabilities, such as impaired vision. However, what exactly is required is a source of confusion. In 2019, the Department of Justice (DOJ), which is responsible for establishing regulations pursuant to the ADA, withdrew regulations that had been drafted for website accessibility, and has since yet to promulgate any such regulations. This has left courts with the task of determining how and to what extent web accessibility is required under the ADA when it comes to businesses that offer goods and services online, with varying results. Continue Reading CCPA and Web Accessibility
As if businesses did not already have enough to address with the COVID-19 pandemic and compliance with the California Consumer Privacy Act (the “CCPA”), businesses need to consider the California Privacy Rights Act (the “CPRA”), which will almost certainly be on the November ballot. Structured as an amendment to the CCPA and also known as “CCPA 2.0”, the CPRA ballot initiative was spawned by Alastair Mactaggart. You may recall Mr. Mactaggart as the real estate developer who submitted a ballot initiative that resulted in a negotiation with the state legislature to replace the initiative with the CCPA. If the CPRA is passed and becomes law, it would be effective and enforceable January 1, 2023, with certain provisions having a look-back provision.
The CPRA would establish a new category of “sensitive data” that is reminiscent of the GDPR’s definition of special categories of data but it is much broader. The definition is overly-inclusive, spanning from race, religion, and sexual orientation to financial account information and government identifiers (e.g., social security numbers). Consumers could choose to limit the use, sale and sharing of their sensitive data. Additional links on business websites may be required to “Limit the Use of My Sensitive Personal Information” in addition to the current “Do Not Sell My Personal Information” link that some businesses must now include under the CCPA. Continue Reading The California Privacy Rights Act: CCPA Part Two
As cities and states gradually open up, companies have begun to assess under what circumstances they can re-open the workplace – and in particular, what health-related personal information can and should be collected. When it comes to monitoring employees, generally speaking, privacy and employment law are increasingly overlapping as more stringent laws are adopted, and COVID-19 has brought this overlap to the forefront. Our employment team at Hopkins & Carley has provided a number of resources and webinars on the employment-related issues of COVID-19 and what can and cannot be done (available here). Here we will focus on the intertwined privacy implications of allowing individuals – employees and non-employees – back into offices and facilities, particularly with respect to the California Consumer Privacy Act (CCPA).
What are the CCPA’s notice requirements? Continue Reading Returning to Work: CCPA Considerations
While much of the discussion around the California Consumer Privacy Act (CCPA) has centered around organizations that collect personal information online, less attention has been directed to the requirements that may come into play when personal information is collected offline. We recently wrote about how CCPA applies to the restaurant industry specifically (you can read that blog here), but there is no question that many other industries and businesses really ought to be paying close attention to CCPA and how to comply with the various requirements. One of those is commercial real estate.
On a recent visit to a client’s office in the San Francisco financial district, I arrived in the lobby of a large commercial office building and headed to the security desk. As is common, I was asked for my ID, which I promptly surrendered. I am accustomed to having security personnel look at my ID and hand it back immediately, but this time, the gentleman behind the counter actually wrote down the details of my information before handing back my ID. As it happens, the process was unusually slow enough to give me time to look around for some privacy notice or reference to privacy practices – something that has become a bit of a habit for a privacy practitioner like myself, post-CCPA. Unsurprisingly, there was no privacy notice (or reference to a privacy notice) to be found – be it on the counter, the wall behind the counter, or anywhere else. I asked the security guard where I might be able to locate a privacy notice, but when he looked at me like I was speaking a foreign language, I knew better than to insist.
Gone are the days of thinking your business only needs to comply with certain privacy laws if it’s a “tech” company – or one that handles particularly sensitive information such as health information. Under the California Consumer Privacy Protection Act (“CCPA”), which went into effect on January 1, 2020, even brick and mortar companies must provide notices of their privacy practices at the point of collection, and this includes a number of retailers, wineries and restaurants (or restaurant groups).
Not so long ago, technology and the restaurant industry were worlds apart. If you wanted a reservation, you’d leave a voicemail that would be transcribed only to be deleted shortly thereafter. Loyalty cards were punch cards with no name attached. And if the wait for brunch was too long, you’d add your first name to a scrappy list that was discarded at the end of the day, or be handed a small buzzing device to let you know when your table was ready. Those “carefree” (or data-free) days have been replaced with a multitude of interconnected applications that all require the collection of personal information in some way – and importantly, that hang on to this information for longer periods. Restaurants and restaurant groups that collect the personal information of California residents and meet any one of the CCPA thresholds (i.e., over $25 million in annual revenue, collection of data on more than 50,000 consumers or 50% of revenue from sales) must comply with California’s stringent new law. Because the definition of personal information under CCPA is very broad and includes online identifiers, email addresses, and location data, as well as offline data (just to name a few), many successful restaurant groups are likely to fall within these thresholds and be subject to the CCPA. Continue Reading How CCPA Affects Brick & Mortar Industries: Restaurants