“California Enacts Broad-Reaching Consumer Privacy Legislation”
With Governor Jerry Brown’s signature this afternoon, the California legislature passed the most sweeping privacy legislation in the Nation, to avert what promised to be a wildly expensive and contentious showdown over a competing – and more controversial – initiative slated for the November ballot (the “Privacy Initiative”). The California Consumer Privacy Act of 2018 (the “Act”) imposes upon businesses within its coverage major new compliance requirements and liability exposure. The Act’s provisions go into effect on January 1, 2020. The Act requires businesses to implement a new infrastructure to provide California residents with extensive controls over virtually every conceivable form of personal information, including the rights to prevent the sale and to require deletion of their information. It also increases the exposure for any data breach.
This Stroock Special Bulletin summarizes key aspects of the Act and highlights key differences between the Act and the Privacy Initiative and the European General Data Protection Regulation (“GDPR”) that went into effect on May 25, 2018.