California Consumer Privacy Act (CCPA)

As discussed in our prior post, the California Consumer Privacy Act of 2018 (the “Act”) is expected to be modified by the California legislature prior to its January 1, 2020, enforcement deadline. In fact, while Governor Brown signed the legislation less than two months ago, one effort to amend the law already is underway through California Senate Bill 1121.

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Thank you to everyone who attended our webinar on the California Consumer Privacy Act of 2018.  For those who were unable to attend, you can listen to the recording here and obtain a copy of the slide deck here.  To access the recording, please fill in the requested information under “Register Now,” select “Yes,

Just as many US businesses were scrambling to meet GDPR compliance, California quickly passed a broad new privacy act, giving businesses another privacy compliance headache. We’ve previously blogged on the dramatic history behind the eleventh-hour passage of the California Consumer Privacy Act (CCPA), so we won’t rehash that story here.  Instead, the focus of this post will be on the overlap between the CCPA and the GDPR. 
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As we discussed in our prior alert, California voters had been poised to consider a citizen-initiated ballot measure that would have significantly expanded the privacy rights of California citizens and provided substantial penalties for noncompliant companies. In response to that ballot measure, the California legislature hastily pushed through privacy legislation despite the “grave, grave concerns” expressed by lawmakers.

Lawmakers were willing to enact the flawed legislation based on an assurance from the leader of the ballot measure that he would not submit the measure if the legislation was passed. However, because the deadline to submit ballot measures was June 28, 2018, lawmakers had to rush the legislation through both houses. And, since state law requires that legislation be in print for at least 72 hours before a vote, lawmakers had no opportunity to offer amendments.

Lawmakers were willing to engage in such a rushed course of action because, if the ballot measure had become law, both houses would have been required to approve any changes by a 70 percent vote instead of a simple majority. Also, because the legislation does not go into effect until January 1, 2020, lawmakers theoretically can fix any problems in the intervening time frame.

Despite its tumultuous legislative history, the legislation—titled the California Consumer Privacy Act of 2018—grants significant privacy rights to California residents. Any entity that does business in California and qualifies as a “business” under the Act will need to comply with the law or risk substantial financial penalty.


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