On June 28, 2018, California passed
, the California Consumer Privacy Act, a new privacy bill that will go into effect in California on January 1, 2020.
AB 375 will affect legal entities that are organized or operated for the profit or financial benefit of its shareholders or other owners and that do business in California and process the personal information of California residents if the business (1) “has an annual gross revenue in excess of twenty-five million dollars;” (2) for “commercial purposes, sells, or shares . . . the personal information of 50,000 or more consumers, households, or devices;” or (3) [d]erives 50 percent or more of its annual revenues from selling consumers’ personal information.” Personal information includes “information that identifies, relates to, describes, is capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household.” Personal information is not limited to information like an individual’s name, address, payment information, and social security number. Personal information includes, among other things, information such as electronic network activity data, geolocation data, and any inferences drawn from personal information to determine an individual’s preferences.
Businesses affected by AB 375 will be required to inform California consumers about their information practices, including the types of information to be collected and the reason for the collection. California residents will have the right to access the information that is processed, the right to obtain copies of the information and the right to have the information deleted. California residents will additionally have the right to know what information has been sold to a third party, the right to deny a business the ability to sell their information to a third party, and must be notified before a third party can sell their personal information.
Businesses cannot discriminate against a California resident for exercising their rights as a consumer under AB 375, but they can use financial incentives to encourage California residents to not exercise their rights. Each violation of AB 375 can result in civil fines of up to $7,500. Consumers can recover up to $750 in damages and also request injunctive or declaratory relief.
For more information, please contact Kristen Connolly McCullough.