August 1, 2022

By: Steven Nakasone

On July 8, 2022, the California Privacy Protection Agency commenced the formal rulemaking process to adopt regulations to clarify and implement the amendments to the California Consumer Privacy Act (“CCPA”). The amendments will go into effect on January 1, 2023.

The amendments will expand the rights of consumers and will increase the corresponding compliance obligations on businesses. Key changes to the CCPA include:

• Employees and individuals acting as representatives of businesses will be covered.
• Consumers will have the right to “opt-out” of the sharing of personal information with third parties for cross-context behavioral advertising purposes.
• Consumers will have the right to limit the use of “sensitive” personal information.
• Websites must recognize and respond to user generated opt-out preference signals.
• Businesses must enter into or update their contracts with service providers, contractors and third parties that receive personal information.
• Privacy policies must be updated to add new disclosures and notifications.

Businesses should prepare now.

Businesses, particularly businesses that provide services or goods online, should begin immediately to prepare for the amended CCPA. The amended law will not merely require businesses to update their privacy policies. It will be necessary for businesses to review their personal data collection and processing operations and implement the necessary technical infrastructure and internal procedures and practices to comply with the new requirements. Demand for compliance advice will be high in the fourth quarter of 2022, so businesses are advised to start now.

For information, please contact the following members of our Privacy and Data Security Law practice group.

Steven M. Nakasone

Jeffrey M. Dennis

Frank X. Curci

Akana K.J. Ma

Jennifer Guerrero

This communication is not intended to create or constitute, nor does it create or constitute, an attorney-client or any other legal relationship. No statement in this communication constitutes legal advice nor should any communication herein be construed, relied upon, or interpreted as legal advice. This communication is for general information purposes only regarding recent legal developments of interest, and is not a substitute for legal counsel on any subject matter. No reader should act or refrain from acting on the basis of any information included herein without seeking appropriate legal advice on the particular facts and circumstances affecting that reader. For more information, visit www.buchalter.com.