December 2019

On January 1, 2020, if your company sells goods or services to California consumers and meets certain criteria,[1] the agreements you have with companies that handle personal information on your behalf should be analyzed and, if necessary, updated just as your privacy notices should be updated.[2]

Examples of companies that handle personal information on a company’s behalf include marketing companies, managed security service providers (MSSP), and software-as-a-service (SaaS) providers such as payment processing, document and email management, and customer analytics companies.

Why this Matters

Under the California Consumer Privacy Act (“CCPA”), companies that handle consumer information on behalf of a company are “service providers.”[3] The CCPA requires that a company enter into an agreement with a service provider that

prohibits the entity receiving the information from retaining, using, or disclosing the personal information for any purpose other than for the specific purpose of performing the services specified in the contract for the business … [4]

This is important because the CCPA exempts a company for any violation of the CCPA if its service providers have executed an agreement and they, not the company providing the personal information, violates any of the rights given to California consumers under the CCPA.[5]
Continue Reading CCPA is Here – Are Your Agreements Ready?

Last year towards the end of May, a barrage of emails and pop-ups informed online users about how companies use cookies – small bits of software that track website activity – in accordance with a requirement under the European Union’s General Data Protection Regulation.

On January 1, 2020, many companies will inform consumers about updates to their privacy notices – agreements between companies and their consumers about how personal information is processed – in accordance with a requirement under the California Consumer Privacy Act (“CCPA”).

Why this Matters

A privacy notice (aka privacy policy or privacy statement) is typically the first place a company explains its practices for handling the personal information it collects.  Privacy notices have received considerable attention this year, not all of it positive.  You do not have to read all of the New York Times article, “We Read 150 Privacy Policies. They Were an Incomprehensible Disaster,” to know what it concluded.[1]  Similarly, an article titled “Are Organizations Ready for New Privacy Regulations?” summarizes the Online Trust Alliance’s analysis of 1,200 privacy statements and its view that many of these privacy notices could result in penalties for failing to follow new laws such as the CCPA.[2]  In addition, privacy notices have been the subject of litigation in cases asserting that the sale of customer information to non-affiliated entities for marketing purposes,[3] and the transfer of customer data in a merger, asset sale, or sale of customer information, were all improper because they violated companies’ privacy notices.[4]
Continue Reading CCPA is Here – Is Your Privacy Notice Ready?

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Contracts, laws and regulations require privacy compliance, and good business practices demand it. This blog is designed to inform our clients and readers about developing privacy issues and regulatory updates, and provide alerts on cyber security stories and data breaches that impact various data privacy and security requirements.