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Eureka! California Just Adopted a Strong Privacy Law

While the rest of us were still recovering from the May 25 effective date of the EU’s General Data Protection Regulation (GDPR), California, the most populous and largest economy of any of the United States, confidently adopted a broad consumer privacy law. The California Consumer Privacy Act of 2018 (CCPA) was enacted June 28 and becomes operative on January 1, 2020. Unlike existing industry-specific U.S. privacy laws, the CCPA has a broad overall scope, more like the GDPR. It ensures California residents the right to know what information about them is being collected and sold or disclosed, to reject the sale of their personal information, to access the information, and to receive equal service and price, even if they exercise their privacy rights.

Unlike the GDPR, the CCPA does not extend to extra-territorial coverage. The CCPA applies only to for-profit businesses doing business in California and sets certain thresholds for business activity and size, thereby protecting most of the Silicon Valley start-up community from the cost of compliance. The CCPA protects the rights of “consumers,” who are natural persons residing in California, and generally does not apply to California residents while they are outside of California.

A business that is required to comply with CCPA will need to update its website, and include a conspicuous link on the homepage to a page titled, “Do Not Sell My Personal Information.” In addition, the website must describe the consumer’s privacy rights and annually update its privacy policy to reflect current practices. Consumers will be able to opt-out of collection practices; although children (or their parents) must opt-in. Consumers must be able to contact businesses regarding their collected information. Amendments and corrections to the CCPA are expected.

Copyright 2020 K & L GatesNational Law Review, Volume VIII, Number 197


About this Author

Susan Altman, KL Gates Law Firm, Commercial Transactions and Outsourcing Attorney

Susan Altman navigates businesses through the complexities of today’s technology-enabled commercial transactions in order to help lower costs and improve revenues. Ms. Altman helps clients properly structure contracts in ways that foster long-term, positive commercial relationships, whether through subscription agreements, licensing, strategic alliances, or outsourcing transactions. For example, she recently structured all of the commercial contracts to launch a digital exchange through which institutional investors, banks, broker-dealers, and registered advisors may...