In June of this year, California passed the California Consumer Privacy Act (CCPA) giving California residents specific rights related to their online privacy, similar to those proscribed by GDPR. The law was passed hastily to avoid a stricter ballot measure on the subject, but Governor Brown recently signed a bill amending the law.

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Just when you think you’ve tackled the Wild, Wild West of GDPR and privacy compliance, California decides to mix it all up again.

This November 6th, California voters will decide on the California Consumer Privacy Act (“Act”), a statewide ballot proposition intended to give California consumers more “rights” with respect to personal information (“PII”) collected from or about them.  Much like CalOPPA, California’s Do-Not-Track and Shine the Light laws, the Act will have broader consequences for companies operating nationwide.

The Act provides certain consumer “rights” and requires companies to disclose the categories of PII collected, and identify with whom the PII is shared or sold. It also includes a right to prevent the sale of PII to third parties, and imposes requirements on businesses to safeguard PII.  If passed, the Act would take effect on November 7, 2018, but would apply to PII collected or sold by a business on or after nine (9) months from the effective date – i.e., on August 7, 2019.

Who is Covered?

The Act is intended to cover businesses that earn $50 million a year in revenue, or businesses that “sell” PII either by (1) selling 100,000 consumer’s records each year, or (2) deriving 50% of their annual revenue by selling PII. These categories of businesses must comply if they collect or sell Californians’ PII, regardless of whether they are located in California, a different state, or even a different country.
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Western UnionLast week, California became the 50th state to join the multistate settlement with Western Union over its alleged complicity in fraud-induced wire transfers.  This followed Western Union’s $5 million agreement with 49 state and the District of Columbia for costs and fees in January, not to mention a whopping $586 million in settlement agreements

On Monday, a California federal judge enforced the California choice-of-law clause in Facebook’s online terms of use, and on that basis refused to consider the claims of a New Jersey resident that aspects of those terms of use violated New Jersey’s consumer contract disclosure law, the Truth-in-Consumer Contract, Warranty, and Notice Act (“TCCWNA”).  The decision

Last week, California Governor Jerry Brown signed into law three bills that revise California’s data breach notification statute. The bills, which take effect January 1, 2016, establish specific formatting requirements for the consumer breach notice letter; define “encrypted”; and create notice, security, and privacy obligations for data captured by automated license plate recognition (ALPR) systems.

Last week, California Governor Jerry Brown signed into law A.B. 1116, prohibiting manufacturers’ use of smart televisions’ voice recognition feature for advertising purposes. Effective January 1, 2016, consumers must be “prominently informed” during initial set-up or installation of the operation of a voice recognition feature, and any recordings collected through the operation of the

Yesterday, the California Public Utilities Commission announced it had approved a $33.4 million settlement with Comcast, which resolves allegations that, due to vendor switches, the company disclosed and published the contact information – name, address, and telephone number – of almost 75,000 California customers. Although the information published included contact information only, the affected customers

Last week, Lands’ End tried a second time to dismiss a “Made in U.S.A.” class action with the novel argument that, because the company had already reimbursed the plaintiff for the necktie she purchased, she is not injured and lacks standing.

As background, in October 2014, plaintiff Elaine Oxina filed the putative class action in

California state law bill SB 763 has stayed relatively under the radar since its introduction in February 2015.  However, with recent traction in the state legislature – including passage in the Senate in June and passage in three Assembly Committees in July – this bill is definitely worth a second look.

SB 763 would require manufacturers of “juvenile products” sold in California to include a statement on the product’s label whether or not the product contains added flame retardant chemicals.  A “juvenile product” would be defined as a product subject to California’s Home Furnishings and Thermal Insulation Act,[1] and intended for use by infants and children under 12.  Covered products would include not only bassinets, floor play mats, crib mattresses, infant bouncers, and infant and booster seats which are used by infants and children, but also products intended for use by adults which the child or infant may come in contact with.  This includes, for example, nursing pads, nursing pillows, infant carriers, and changing table pads.

The bill would require manufacturers to affix the following lengthy labeling statement on covered juvenile products sold in California, and indicate the absence or presence of added flame retardant chemicals by marking a “X” in the applicable space below:

The State of California has determined that this product does not pose a serious fire hazard. The state has identified many flame retardant chemicals as being known to, or strongly suspected of, adversely impacting human health or development.
The fabric, filling, and plastic parts of this product:
_____contains added flame retardant chemicals
_____contains NO added flame retardant chemicals

Additionally, the bill imposes recordkeeping requirements, allows the CA Department of Toxic Substances Control to test products labeled as containing no added flame retardant chemicals for compliance, and permits fines ranging from $2,500 to $15,000 for mislabeling and other violations.

In the past few years, flame retardant chemicals have been highly scrutinized by consumer advocates.  According to the bill’s author, “[g]rowing evidence show(s) that many fire retardant chemicals have serious human and environmental health impacts, including cancer, decreased fertility, hormone disruption, lower IQ, and hyperactivity.”

Although the bill’s intentions are honorable – i.e., to provide parents with information needed to choose safe and healthy products for their children – the reality is that the bill would impose additional requirements on products already regulated by the CPSC, impose costly and burdensome labeling requirements on businesses, and may actually undermine consumer confidence in covered products.

As noted by Anne Northup, Former Congresswoman and Former U.S. CPSC Commissioner, “[i]magine the confusion from expectant parents shopping for needed items when they see that the high chair is labeled as being free of flame-retardants and the crib mattress being labeled as containing them. What are they to conclude about which product is safe?”


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