Orange County, Calif. (June 21, 2023) – The California Consumer Privacy Act of 2018 (CCPA), as amended by the California Privacy Rights Act (CPRA) (collectively, the CPRA) introduced significant changes to the data privacy landscape, enhancing consumer protections and imposing new obligations on businesses. The CPRA went into effect on January 1, 2023, and will be enforced beginning July 1, 2023.

As the enforcement date approaches, it is crucial for businesses to stay informed about the latest CPRA developments so that they may work toward compliance. This alert provides a brief overview of CPRA enforcement mechanisms and highlights key steps businesses can take to become enforcement ready.

CPRA Enforcement Mechanisms

Accompanying the newfound consumer rights and company obligations under the CPRA are new enforcement mechanisms, most notably the establishment of the California Privacy Protection Agency (CPPA) as the nation's inaugural regulatory body solely focused on safeguarding consumer privacy. Additionally, the CPRA extends the reach of private enforcement by allowing a private right of action.

Administrative Enforcement

The CPPA is granted significant authority to enforce the CPRA's provisions, including the power to conduct investigations, issue subpoenas, and impose penalties. Administrative fines range from up to $2,500 per violation, or $7,500 for each intentional violation or violation involving the personal information of consumers under 16 years of age.

Civil Enforcement

Any business that violates the CPRA shall be subject to an injunction and liable for a civil penalty, which shall be assessed and recovered in a civil action brought by the Attorney General. The amount of a potential civil penalty is the same as for an administrative fine, although there are some nuances in the statutory language.

Private Right of Action

Consumers have a private right of action under the CPRA where there is unauthorized access and disclosure of certain nonencrypted and nonredacted personal information due to a business' failure "to implement and maintain reasonable security procedures." In this instance, consumers may recover between $100 to $750 or actual damages, whichever is greater.

Compliance Measures to Consider

We have curated a checklist of essential compliance measures that businesses should assess when reviewing their data protection practices and online privacy disclosures. Although our guidance primarily focuses on the requirements outlined under California law, the steps outlined below should be broadly considered given the myriad of other U.S. states with comprehensive privacy laws. We recommend consulting with one of our attorneys in the Data Privacy & Cybersecurity Practice to assess your business' compliance.

  • Update Privacy Notices and Policies: Review and revise your privacy notices and policies to accurately reflect the changes introduced by the CPRA. Provide transparent and comprehensive information about data collection, processing, sharing, and individuals' privacy rights.

  • Establish Consumer Request Processes: Develop efficient and effective processes for handling consumer requests, including requests for access, deletion, correction, and opt-outs. These processes should be well-documented, easily accessible, and promptly executed.

  • Make Sure That Your Policies Are Consistent With Actual Procedures:
    -Honor the choices made by website visitors across all pages of your website. This includes respecting opt-out preferences for cookies or honoring requests made through the "Do Not Sell or Share My Personal Information" button.
    -Maintain accurate and up-to-date descriptions regarding disclosures made to third parties.

  • Enhance Data Security Measures: Strengthen your infrastructure by implementing robust safeguards, encryption mechanisms, access controls, and incident response plans. Regularly train employees on security best practices to minimize the risk of data breaches.

  • Stay Updated and Engage with Compliance Experts: Monitor developments in CPRA regulations and seek guidance from legal and compliance professionals who specialize in data privacy. They can provide valuable insights and assist in navigating the complexities of the ever-evolving framework of privacy laws.

Conclusion

As the CPRA enforcement date approaches, businesses must proactively adapt their practices to meet the enhanced privacy requirements. By staying informed about the CPRA regulations update and taking necessary steps to achieve enforcement readiness, businesses can demonstrate their commitment to consumer privacy and maintain compliance with the evolving data privacy landscape. Embracing these changes not only mitigates legal risks but also builds trust with consumers, fostering stronger relationships in an increasingly privacy-conscious world.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.