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. The California Consumer Privacy Act (CCPA)is going to be enforced starting on July 1, 2020 having gone into effect at the start of 2020 — and new guidance from the California Attorney General should quickly become the focus of any digital organizations with significant amounts of user data. Furthermore, requiring explicit consent puts the consumer in the same position they would have been had the material change been disclosed during the consumer’s first engagement with the business. And even after the final regulations are approved by OAL, Appendix E to the Final Statement of Reasons states: I’m on Twitter @ thezedwards for any questions or feedback. 24.) As authorized by Government Code section 11346.9, subdivision (d), the OAG hereby incorporates the Initial Statement of Reasons (ISOR) prepared in this matter. The OAL approved the final version along with an updated Addendum to the Final Statement of Reasons. Notification that the request was denied is unlikely to lead to such an assumption. Subsection (d)(1) has been added to provide clear guidance that any privacy control designed or developed should clearly communicate or signal that a consumer intends to opt-out of the sale of personal information. A business should test their own processes on a regular basis — if an organization fails to acknowledge receipt of a Request to Know / Delete within 10 business days, or fails to provide additional details within the first 45 day window, or the 45-day optional extension, that business is potentially in violation of CCPA. (b)(2).) It is not intended to allow consumers to know or delete personal information collected by a non-business merely because the non-business outsources tasks to a service provider. First, the word “calendar” has been added to clarify that the time period to respond to requests to know and requests to delete is 45 calendar days. (Civ. Furthermore, simply putting up a new notice on a website after a consumer has already provided personal information, when that consumer may be unlikely to revisit the website (and even more unlikely to revisit the notice), is not meaningful consumer notice. Some comments called for eliminating the 15-day requirement or extending it to align with the 45-day requirement for responding to requests to know or to delete. (See ISOR, pp. ©(1)(g)(2), 999.313, subd. The regulation benefits both businesses and innovators who will develop such controls by providing guidance on the parameters of what must be communicated. It’s likely that many businesses complained that this messaging would give consumers the wrong impression about a business, so this section helps to clarify that CCPA is going to be flexible enough in deployment to not provide false signals of data sales. (See Civ. There are numerous sections of the CCPA guidance that attempt to provide guidance about when a consumer must be notified about the collection of personal information — and one important part of these regulations could basically implode the entire outdoor kiosk/POS mobileID tracking schemes here in California. The change is necessary to ensure that the term does not encompass persons with only a transitory relationship to a dwelling or a tenuous connection to another resident. “Categories of sources” has been clarified to mean “types or groupings of persons or entities” from which a business collects consumers’ personal information, not just “types of entities.” The definition has also been modified to require a business to describe its categories of sources “with enough particularity to provide consumers with a meaningful understanding of the type of person or entity.” The following examples have also been added to the definition: advertising networks, internet service providers, data analytics providers, operating systems and platforms, social networks, and data brokers. This subsection is forward-looking and intended to encourage innovation and the development of technological solutions to facilitate and govern the submission of requests to opt-out. This is probably a good but overly broad opinion — it feels like a potential loophole for massive data collection companies that are partnering with governments, and building profiles on ordinary Americans. Throughout CCPA and the guidance from the California Attorney General’s office, there are mentions of “households” — these are groupings of individuals, sometimes related to each other and other times just living together, who may have overlapping data or an interest in restricting access to their data from other members of the household. This change is necessary because it provides direction to businesses on what to communicate to consumers when they are prohibited from disclosing these specified pieces of personal information. There are several clarifications for Service Providers, and there seem to be additional restrictions and clarifications that will apply to any businesses that acquired user data as part of a Service Provider relationship — those businesses are not allowed to retain or use that personal information for its own business purposes. This change is necessary so that the language used in the regulation is consistent with the language used in the CCPA. (t)(2)©.) This just-in-time notice allows consumers to make an informed decision about how to interact with the business at or before the point of collection of their information, in furtherance of Civil Code § 1798.100, subdivision (b). (See, e.g., Gov. And it seems that some businesses were advocating to the California Attorney General that they should be able to merely update a notice / TOS / Privacy Policy, and that CCPA doesn’t provide the OAG authority to strengthen requirements and require consumer-consent for a new data collection purpose. These public and nonprofit entities also store documents in cloud storage, use email systems provided by third parties, and employ vendors to manage data. Second, the phrase “in general” has been added to clarify that a business’s confirmation of receipt of request simply needs to provide a general description of the business’s verification process. If you are a business with significant user data (10+ million consumers in a calendar year), you don’t get to start every month coming up with new monetization strategies for your existing user data without getting permission from users to use their existing data for materially different efforts — and with the new categories of sources being clarified by the CA AG to now include: “Advertising Networks, Internet Service Providers, Data Analytics Providers, Operating Systems and Platforms, Social Networks, and Data Brokers” — things are about to get much more serious for organizations who have treated user consent like a blank check for future user data monetization efforts. Keypoint: Some additional changes to the CCPA regulations were made before they were filed with the Secretary of State and became effective. The requirements included in this CCPA guidance are minimal, but the sections are interesting and should be read by anyone working with Consent Management Platforms. It benefits consumers by providing them with information to make privacy decisions while protecting them from the harms that could result from the unauthorized disclosure of this sensitive personal information. CCPA should not be used to append new data to customer records, and attempts to do that should only be possible with strong communication to users about that process. These modifications also provide more guidance to businesses concerning the information they are required to provide to consumers, especially when responding to a request to know. Subsection (a) has been modified in three ways. Subsection (a)(4) was added to address instances in which a business collects personal information from a consumer’s mobile device for purposes that the consumer would not reasonably expect. If the business declines to do so, the business can simply provide the consumer with a pre-formulated response with information on how to submit the request and remedy deficiencies. And because the regulation mandates that the privacy control clearly communicate that the consumer intends to opt-out of the sale of personal information, the consumer’s use of the control is sufficient to demonstrate that they are choosing to exercise their CCPA right. This change is also necessary to encompass both temporal proximity, such as in online data captures, and physical proximity, such as near a cash register at an in-store location where collection is taking place. As discussed in our prior post, on Friday, August 14, 2020, the California Office of Administrative Law (OAL) approved the California Office of the Attorney General’s (OAG) final CCPA regulations and filed them with the California Secretary of … An entity may in some instances be the business that collects personal information from consumers and in other instances a third party that receives personal information collected by another business. Given the ease and frequency by which personal information is collected and sold when a consumer visits a website, consumers should have a similarly easy ability to request to opt-out globally. Former subsection (f), regarding the proposed opt-out button, has been deleted in response to the various comments received during the public comment period. Indeed, the term “business purpose,” when used in the statutory text, contextualizes why a business discloses personal information to a service provider or third party, not the universe of possible ways a service provider could use that information. Code, § 1798.140, subd. Instead, it requires a business that sells a consumer’s personal information to any third parties after the consumer submits their request but before the business complies with that request to notify those third parties that the consumer has exercised their right to opt-out and to direct those third parties not to sell that consumer’s information. Section 999.306, subsection (d), also provides that a business that does not sell personal information does not need to provide a notice of right to opt-out if it states so in its privacy policy. Subsection (C ) has been substantially modified. (See Civ. At long last, though, the final … Code, § 1798.185, subd. Some comments claimed operational difficulties in complying with opt-out requests within 15 days, particularly if requests are received during the holidays, and asked that the regulation at least be modified to 15 business days, not calendar days. (Civil Code § 1798.140, subds. At any point in the future, if the consumer reactivates their account, there doesn’t seem to be an explicit ban on a business merging all customer data, including the data submitted on the Right to Know / Delete forms, into the larger customer account/records. It informs the consumer that the business may have other personal information about them but assures them that this information is only maintained by the business in an unsearchable or inaccessible format, solely for legal or compliance purposes, and is not being used for the business’s commercial benefit. In conjunction with the release of the final version of the regulations, the AG released an Addendum to Final Statement of Reasons explaining that it had (1) withdrawn certain provisions for additional consideration and (2) any changes to the text of the June 1, 2020 regulations were “non-substantive” and for “accuracy, consistency, and clarity.” Categories of data sources and the types of entities that collect data have been expanded to include and require more specificity, with several new entity definitions including, “ advertising networks, internet service providers, data analytics providers, operating systems and platforms, social networks, and data brokers.”. The change also benefits consumers by not overwhelming them with notices for every minor change, which may result in notice fatigue. The CCPA regulations purport to do so via additional definitions; further detail on the contents of consumer notices; clarification of the methods in-scope businesses must offer to consumers for submitting requests to know, delete and opt out (or opt in); specificity relating to verification of requests; and more. In what is potentially the shortest Reason amongst the CCPA guidance from the California Attorney General, there is a short mention of the ill-fated “opt-out button of shame” that was suggested in previous documents from the AG’s office and quickly reduced to ash by UI/UX experts across the internet. The CCPA guidance also includes an example scenario where businesses would be required to request consent for a new purpose: When businesses change practices midstream, the consumer should have the opportunity to decide whether to agree to the new purpose. 8–9.) Do you have feedback or think I missed the mark on something? This regulation offers consumers a global choice to opt-out of the sale of personal information, as opposed to going website by website to make individual requests with each business each time they use a new browser or a new device. Finally, subsection ©(3)(d), which requires the business to describe to the consumer the categories of records that may contain personal information that it did not search, is necessary to provide transparency to consumers. Household Data Access & Deletion requests are going to be challenging for some organizations, and several aspects of the CCPA guidance seems to be aimed at discouraging “Verification by IP Address” for Access/Deletion requests — and basically organizations need to not only account for household requests (group requests), but also come up with their own internal Trust & Safety solutions to reduce the likelihood of a household guest, Airbnb renter or some other temporary occupant taking advantage of an unsafe access/deletion process. A few highlights from the final CCPA regulations: Service providers: Per the California Attorney General’s Final Statement of Reasons, a service provider that processes information in breach of the provisions of the agreement between the “business” and such service provider is subject to direct enforcement by the Attorney General, even if the business is not inclined to enforce. It’s probably appropriate to leave this loophole and wait for a business to abuse it, due to this probably being an underused loophole. The California AG made it clear that the California Data Broker Registry was not only going to be essential for businesses to comply with who are in the business of buying or selling user data, but also pointed out that new industries and privacy innovation can be built with these registries via efforts to standardize global opt-out signals. (t)(2)©.) The final regulations are substantially similar to the most recent draft regulations issued in June, with a few notable changes discussed below. (a)(7), 1798.185, subd. It's the Final (CCPA) Countdown: Takeaways from CA AG CCPA Regulations Final Statement of Reasons Published on June 3, 2020 June 3, 2020 • 36 Likes • 3 Comments Code, § 1798.100, subd. This change was made in response to public comments that requested guidance regarding the level of detail required and that expressed concerns that specific descriptions of a business’s verification process would reveal information to bad actors that could be used to evade security procedures. Anyone who has submitted a comment regarding the regulations has the right to … As discussed in our prior post , on Friday, August 14, 2020, the California Office of Administrative Law (OAL) approved the California Office of the Attorney General's (OAG) final CCPA regulations and filed them with the California … The final implementing regulations take effect immediately. Code, § 1798.140, subd. Right now, there are a huge amount of analytics companies and mobile app SDK providers that acquired user data as part of Service Provider relationships with other mobile apps — and those organizations have been selling the data for COVID location tracking in violation of CCPA. This change is necessary to balance a consumer’s right to know with the harms that can result from the unauthorized disclosure of information….Third, subsection (C ) (4) has been modified to require a business to inform consumers with sufficient particularity that it has collected the type of information set forth in the regulation. The regulation also benefits businesses by providing clear guidance regarding when they must provide a just-in-time notice on a consumer’s mobile device. (b)(2).) Such an approach would allow businesses to engage in passive notice updates without allowing consumers any agency to control how their personal information is used. Unfortunately, while the Addendum to the Final Statement of Reasons explains what changes were made, it provides no detail as to why. Subsection (b) has been modified in two ways. Furthermore, simply putting up a new notice on a website after a consumer has already provided personal information, when that consumer may be unlikely to revisit the website (and even more unlikely to revisit the notice), is not meaningful consumer notice. While the alternative of allowing a subsequently posted notice of right to opt-out to apply retroactively would be less burdensome to businesses, it would not be as effective in informing the consumer of their right at the point of collection, when the consumer may be most aware of what personal information the business is collecting from them. There’s an important balance between reducing consumer rights and ensuring businesses aren’t overly burdened — the current CCPA guidance seems to provide a loophole for businesses that can’t access an archived or backup system to delete user data. The California Attorney General (“AG”) announced on Friday, August 14 th, that the Office of Administrative Law (“OAL”) approved the final California Consumer Privacy Act (“CCPA”) regulations. California Attorney General Xavier Becerra has submitted a final California Consumer Privacy Act (CCPA) regulations package. Subsection (a), which governs the methods a business must provide for the submission of consumers’ requests to know, has been modified to provide that businesses operating exclusively online and that have a direct relationship with a consumer from whom it collects personal information shall only be required to provide an email address for submitting requests to know. The majority of businesses disclose that they do not comply with those signals, meaning that they do not respond to any mechanism that provides consumers with the ability to exercise choice over how their information is collected. 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