Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Historic California data privacy measure leaves companies scrambling

Historic California data privacy measure leaves companies scrambling

California will become the first state in the country to have a comprehensive data privacy law on Wednesday when the California Consumer Privacy Act (CCPA) goes into effect.
Companies are scrambling to figure out how to handle the law, which is expected to require major firms to disclose the personal information they collect from consumers and what they do with it.

Much about the law, which will not be enforceable until six months after either July 1 or the date a final rule is released, remains unclear.

California Gov. Gavin Newsom signed the bill into law in June 2018, but California Attorney General Xavier Becerra only just published the first round of draft regulations in early October. His office closed the public comment period on Dec. 6, and the final version of the regulations is due out soon.

The bill is expected to allow Californians to view the information that companies have collected about them, and to opt out of that collection. The law is expected to forbid companies from discriminating against users who opt out of data collection.

While the law is not enforceable for now, California has hinted that companies could be sanctioned retroactively if they disregard the new rules on Jan. 1.

A spokesperson for Becerra told The Hill that qualifying companies “should be prepared to adhere to the law as of January 1,” suggesting that retroactive enforcement may be possible.

“While we can’t take action until six months after finalizing our rules, or July 1 - whichever comes first - we can consider a business’s efforts to comply with the law from January 1, onwards,” the spokesperson said.

The CCPA technically applies to businesses with online traffic in California that have annual revenues over $25 million, collect data on 50,000 consumers or receive 50 percent of their revenue from selling data, according to the draft regulation.

But even though it’s a state law, the California rules will have ramifications across the United States.

Since most businesses have web traffic in California, most major online companies will have to adhere to the requirements or risk enforcement action from Becerra’s office. Some companies, like Microsoft and Mozilla, have said they will extend changes made to comply with CCPA to all users.

Facebook has said the tools it has developed to allow users to access and delete their data will be available regardless of geographic location.

Apple, Google and Twitter have also all introduced tools letting users view and download data collected about them.

Yet the response beyond that from U.S. companies has been inconsistent.

“There’s been wide variation in what’s out there,” David Stauss, a partner at Husch Blackwell who assists companies with compliance, told The Hill.

Some experts are recommending businesses avoid extending protections to non-California residents to avoid unnecessary liability.

“Our recommendation, and I think the prevailing wisdom, has been to only extend privacy rights to the people who have those,” said Stauss, who warned of possible lawsuits.

“In California if you don’t respond to a request to delete or a request to know adequately the enforcement mechanism is the attorney general’s office, but if you’ve voluntarily extended those rights to somebody outside California what’s to say you can’t be sued for consumer fraud?”

California’s first in the nation regulations comes amid a broad push from several different levels of government to create data privacy legislation.

Congress has been locked in bipartisan negotiations to develop a federal privacy statute for months, but major sticking points have kept a bill from getting to the floor.

Republicans in both the House and Senate have insisted that they will not support a privacy law unless it preempts state legislation like California’s.

Democrats have made including a private right of action - allowing individuals to sue companies for data misuse - a must in any bill. The CCPA is expected to include a very narrow private right of action after an attempt to expand it fell short in the California Senate.

A draft of federal privacy legislation shared with stakeholders and obtained by The Hill last month punted on both of those divisive questions, suggesting that the wait for Congress to lead on the issue may continue.

The CCPA will go into effect over a year after Europe’s landmark privacy law, the General Data Protection Regulation (GDPR), which set transparency standards for companies handling personal data, required sites to minimize the amount of information they collect and gave users more control over their own data.

While companies have been complying with that law, and some like Microsoft have complied with it globally, it is not clear yet how much the two rules will have in common, potentially creating headaches for companies operating in both markets.

“When the CCPA first came out, there was a lot of thought that if you’ve done GDPR you’re already 80 percent of the way there,” Stauss told The Hill. “I don’t know that that’s ultimately come to pass… it’s just vastly different than GDPR” when it comes to privacy policies.

With federal legislation remains tied up, other states may follow California’s lead.

Maine and Nevada have already passed narrower internet privacy laws, and nearly a dozen other states have considered data legislation already.

Among those states are Massachusetts, New York, Oregon and Illinois. The potential for a patchwork system of privacy laws has left many companies unsure about whether to adhere directly to CCPA or develop broader, more flexible data management regimes.

Adding to the data privacy law morass, California may pass additional rules in 2020.

The group behind the ballot measure that originally resulted in the CCPA are reportedly planning another ballot measure which could create an independent agency to enforce data privacy rules and an opt-in system for internet users under 16, a proposition backed by Sen. Dianne Feinstein (D-Calif.).

“I think the fairest way is opt-in,” Feinstein told reporters in December, saying that opt-out systems help businesses profit on unknowing customers.

While California has beat the federal government and other states to the punch on data privacy laws, the CCPA is likely to be the first in a flurry of regulations as consumers grow more concerned about the conduct of the biggest online platforms.

“This is the start not the end,” Stauss said. “We’re going to see a ton of states looking at this issue, I think we’ll see some states really try to get it across the finish line this year now that the California statute is fully baked.”

“Buckle up - it’s going to be a wild ride for the next probably 3 to 5 years until we get some sort of normalcy in this area.”
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Russia’s A7 Builds a State-Linked Payments Network Beyond Western Sanctions
AI’s Next Bottleneck Is Power, Not Just Nvidia Chips
Meta Raises AI Spending Target to as Much as $145bn Despite Pressure Over Returns
Danube Drought Exposes Nazi Wrecks and Pushes Central Europe’s Power System to the Brink
Joe Biden’s Cancer Has Spread Beyond His Bones, Hunter Biden Says
Why 2027 Could Be a Strong Year for Stocks—and Why the Forecast Is Fragile
Why Markets May Look Quiet in August After Big Tech Earnings
UK Drought Cuts Harvests and Raises Food-Security Fears
UFO: Pentagon Releases Video of Unidentified Object Tracked Over Middle East
Ukraine Tells Senate Republicans Its Drone War Offers a Blueprint for America
Weight-Loss Drug Boom Tests the Limits of Prescription Advertising Rules
Senate Scrutinises AI-Driven Personalised Pricing
Spain Seeks Mainland Transfers for 1,100 Children Stranded in Ceuta
Spain and Morocco Trade Blame After 72,000 Migrants Enter Ceuta
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
Europe’s Heat and Drought Are Now Disrupting Power, Shipping and Tourism
Europe’s Drying Rivers Trigger Power Cuts, Factory Shutdowns and Wildfire Emergencies
Record-Low Danube Forces Nuclear Cuts and Emergency Power Curbs
Danube Drought Forces Hungary’s Paks Nuclear Plant Into Full Shutdown
Ceuta Death Toll Rises as Spain and Europe Clash Over Border Response
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Massive Wildfires Ravage Southern Europe: Fatalities in Greece and Evacuations Across France, Spain, and Turkey
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Apple Briefly Crosses Five Trillion Dollar Valuation as Investors Retreat From AI Bets
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
×