In the last few weeks we have seen both regulatory and legislative action that has helped to clarify the scope and impact of the California Consumer Privacy Act (“CCPA”). By way of a refresher, the CCPA seeks to protect the personal information of California consumers by giving them greater knowledge about the nature and extent of the data collected about them, how it is used (sold or shared) by those who possess it, and how the individual consumer can control the use of his/her personal data. The CCPA applies to companies, regardless of where they are located, which:
Have annual gross revenues in excess of $25 million;
Alone or in conjunction with others annually buy, sell, receive or share for commercial purposes, the personal information of 50,000 or more consumers, households, or devices; or
Derive 50% or more of their annual revenues from selling consumer personal information.
This framework leaves companies to ask some very basic questions before deciding next steps:
What is our annual gross revenue (not limited to California income)?
Do we have the personal information of at least 50,000 consumers, households or devices located in California?
Do we sell the personal data we have of those California consumers, households or devices? If so, do we derive 50% or more of our annual revenues from those sales?
Even if we do not sell that personal data, do we disclose any portion of it to any third parties?
If you answered more than $25 million to the first question or yes to any of the remaining questions, you could be subject to the CCPA, but there is more to the analysis. The next important question is: do you hold personal data belonging to any California consumers, households or devices? If you answered no, you can breathe a sigh of relief. If not, get ready for the year-end push! (more…)
In the June 20, 2019 pre-publication edition of the Federal Register, the U.S. Trade Representative announced the long awaited process for seeking exclusions for goods on List 3, the one which recently went from 10% to 25%. While the exclusion process itself generally mirrors the process applied to those goods on Lists 1 and 2, there are a few differences, but let’s start at the beginning.
Any exclusion request for List 3 goods must be filed between June 30 and September 30, 2019. The request must be filed through the portal: http://exclusions.ustr.gov (active beginning June 30, 2019). One new wrinkle is parties must register in the portal before filing. (more…)
When the law was signed by then Governor Brown (see our prior Alert here), the expectation was that Attorney General Becerra would issue the enabling regulations by July of this year, which would allow a phase-in period. Then by January 1, 2020, the requirements would be clear and companies would be able to properly formulate and implement their compliance policies. Regretfully, things are not going as expected.
First, in accordance with the law, General Becerra organized a series of public meetings: (more…)
On May 25, 2018, important European regulations regarding data privacy and protection go into effect that will have a major impact on American companies, many of whom don’t realize they will be subject to compliance with its requirements. The General Data Protection Regulations (the “GDPR”) will have severe penalties for non-compliance (as high as €20 million or 4% of annual worldwide turnover). The GDPR will also have very broad territorial reach applying not only to European entities, but also to entities located outside of Europe (including those in the U.S.) that process the personal data of living European individuals residing in the covered countries, including if the company:
Offers goods or services to individuals in the covered countries (e.g., e-commerce, capital raising, fund raising, immigration);
Employs individuals in one or more of the countries;
Monitors the behavior of individuals in any of these countries; and
Collects, stores, or processes the personal data of affected individuals on behalf of others.
For these purposes, the European definition of personal data mirrors nicely the American definition of personally identifiable information. Given the severe penalties and broad reach, it is important that each company in the U.S. consider whether the GDPR applies to its operations and, if so, how best to comply. (more…)