ccpa final statement of reasons

Subsection (d) requires a business that collects personal information online to treat user-enabled global privacy controls as a valid request to opt-out. It does not prescribe a particular mechanism or technology; rather, it is technology-neutral to support innovation in privacy services to facilitate consumers’ exercise of their right to opt-out. 24.) I’m not going to excerpt these sections because it’s going to be very hard to thread this needle without violating CCPA, and i’ll need to spend more time on these sections before providing any guidance or opinions about the impacts on various discounting strategies. The data broker registry addresses this gap by publicly identifying specific businesses that may be selling the consumer’s personal information. This change is necessary to balance a consumer’s right to know with the harms that can result from the unauthorized disclosure of information….Third, subsection (C ) (4) has been modified to require a business to inform consumers with sufficient particularity that it has collected the type of information set forth in the regulation. Some comments called for eliminating the 15-day requirement or extending it to align with the 45-day requirement for responding to requests to know or to delete. The definition has been modified to state that the notice must be provided at or before the “point at which” a business collects personal information from a consumer. (See ISOR, p. %PDF-1.6 %���� Without this regulation’s clarification, non-businesses, such as public and nonprofit entities, may not be able to employ service providers without risking disclosure or deletion of personal information or without unnecessary and burdensome costs, which may cause them to incur extra expenses to perform operations internally. Key changes to the final regulations This modification is not intended to speak to whether a business can provide the notice through its mobile application’s settings menu in lieu of providing it on the application’s download page. The PDF for the Final Statement of Reasons can be viewed here. .. Subsection (c ), which requires a business to consider the methods by which it interacts with consumers when determining which methods to provide for submitting requests to know and requests to delete, has been modified in four ways. This change benefits businesses by dispelling uncertainty and benefits consumers by preventing a business from re-collecting information that the consumer had previously requested it to delete. The CCPA Reasons includes several details on these deadlines and responsibilities, from page 39: Former subsection (e) has been renumbered and combined with subsection (f). Many of these outdoor scanners are basically constantly hovering up consumer data, and reselling it for everything from COVID tracking to Online-offline marketing attribution. Subsection (e) is necessary to prevent a business from unilaterally and retroactively changing its policy to sell personal information that it collected during a time period when it expressly assured consumers that it did not sell such information. Subsection (a) has been modified in three ways. h�b```�E,|Q� cb�H��������x��1�10T>��|@�� �!�u����'�gȷ�1Oml;���G��A܇k�Ӿ��V�t�9;\Hf�w��Jb}�$�(y`�� QvVf�ճ��:T�������� If a business decides to change their practice midstream, the business must obtain affirmative consent. The OAG weighed these various comments and determined that 15 business days appropriately balances the right of consumers to opt out at any time with the burden on businesses to process opt-out requests. (b)(2).) This change is necessary so that the language used in the regulation is consistent with the language used in the CCPA. Accordingly, the definition of “categories of third parties” has been modified to clarify this point. The OAG disagrees with this interpretation. It benefits businesses by reinforcing and streamlining their compliance with the data broker registry law and the CCPA. It also reduces the burden on businesses by streamlining the communication methods for receiving and confirming receipt of requests. UPDATE OF INITIAL STATEMENT OF REASONS . As already stated, the CCPA gives the OAG authority to promulgate regulations that further the purposes of the CCPA. This language was added in response to public comments seeking guidance on whether businesses could include this link through their mobile application’s settings menu. There are numerous organizations like Mortgage brokers, Banks and Insurance companies that are building complex processes for consumers to safely request to know/access / delete their data. Subsection (e) was added to state that a business cannot sell personal information it collected during any time it did not have a notice of right to opt-out posted unless it obtains the consumer’s affirmative authorization for the sale. Thus, it is difficult to say with certainty how these changes might impact the AG’s enforcement of the CCPA. (See Schaub, Center for Plain Language.) (q)(5), 999.308, subd. The timing of when this CCPA guidance was written is important — these opinions were being written while massive amounts of mobile location data from the public was being bought, sold, and shared under the guise of consumer protection, and with the NAI and IAB advertising industry groups both blessing the practice of selling existing user mobile location data to support COVID tracking efforts. Additional links and CCPA resources can be found at the CA AG’s website. Lest the purpose of many of the revisions remain unclear, the Final Statement of Reasons contains no fewer than seven references to revisions meant to prevent businesses from “evading” or “avoiding” their obligations under the CCPA. Subsection (k) was formerly subsection (h) and has been renumbered. This blog post is not meant to be an all-encompassing summary of how to get ready for CCPA or the frameworks for sharing and selling user data — there are far too many complicated aspects, largely due to the fact that most organizations who are large enough to need to comply with CCPA, would also have European users and need to comply with GDPR, the European data privacy law. In addition, the AG issued a Final Statement of Reasons that (1) explains the changes between the first draft and final regulations, and (2) is accompanied by Appendices that respond to each public comment received throughout the rulemaking process – including written comments submitted in response to each draft of proposed regulations and those provided at the four … Subsection (a)(5) concerns restrictions on a business’s use of a consumer’s personal information for purposes other than those disclosed in the notice at collection. However, the AG’s responses to comments and Final Statements of Reasons accompanying the final rulemaking package provide guidance on the AG’s position on key ambiguities under the CCPA. These modifications are necessary because entities with whom businesses share personal information may also collect personal information directly from consumers in other contexts. First, the word “primarily” has been inserted before “interacts” to clarify the meaning of the subsection. Presumably, the Attorney General will now publish final regulations and a final statement of reasons (instead of another round of modifications). Under the CCPA guidance, businesses that “substantially interacts with consumers offline may satisfy the requirement that it use an offline method to provide notice to consumers by posting signage directing consumers to ‘where the notice can be found online.’”. And even after the final regulations are approved by OAL, Appendix E to the Final Statement of Reasons states: This requirement is not clear from the text of the regulations and differs from a provision on the same topic in the CPRA Initiative, which is a choice between honoring Do Not Sell signals and posting … Much like under GDPR where an organization can act as both a Data Controller and Data Processor, CCPA now allows an organization to be categorized as both a 1st party and a 3rd party entity whom businesses share personal information, depending on the context of that collection: Subsection (e) has been modified to provide further guidance and clarification for the definition of “categories of third parties,” which is used throughout these regulations. (See Sections 999.301, subd. Subsection (d)(2) has been added to clarify how a business must respond when receiving a global privacy control signal for a consumer who has previously agreed to allow the sale of their information, including through participating in a financial incentive program or through a previous business-specific setting. The California AG has now released the final CCPA regulations, as approved by the Office of Administrative Law (OAL). This modification ensures that businesses expediently address consumer requests and prevents excessive wait times for responses. ©(10)(d).) So for all the organizations that didn’t sell user data and didn’t have a posted notice of right to opt-out of data sales, they would be violating CCPA if they turned around and sold the user data without following back up with the consumer for their affirmative consent for the sale. ©(10)(b).) The final regulations are substantially similar to the most recent draft regulations issued in June, with a few notable changes discussed below. And because the regulation mandates that the privacy control clearly communicate that the consumer intends to opt-out of the sale of personal information, the consumer’s use of the control is sufficient to demonstrate that they are choosing to exercise their CCPA right. The CCPA Reasons from the CA AG also explicitly say why a business can’t just continue to update their data policy notices for new purposes or data sales, because as most people know about user behavior, people don’t go back to revisit privacy policy, terms of service, or data policy webpages, if they even review those pages once. (l) (emphasis added).) At any point in the future, if the consumer reactivates their account, there doesn’t seem to be an explicit ban on a business merging all customer data, including the data submitted on the Right to Know / Delete forms, into the larger customer account/records. This change is necessary because it provides direction to businesses on what to communicate to consumers when they are prohibited from disclosing these specified pieces of personal information. The CCPA requires that any disclosure of personal information from a business to a service provider be “necessary to perform a business purpose.” (Civ. In addition, California law already imposes a separate and distinct legal regime to access information held by public entities, including requirements and exceptions that differ from the CCPA. As authorized by Government Code section 11346.9, subdivision (d), the OAG hereby incorporates the Initial Statement of Reasons (ISOR) prepared in this matter. In conjunction with the release of the final version of the regulations, the AG released an Addendum to Final Statement of Reasons explaining that it had (1) withdrawn certain provisions for additional consideration and (2) any changes to the text of the June 1, 2020 regulations were “non-substantive” and for “accuracy, consistency, and clarity.” Thus, comments that propose simply updating an online privacy policy or providing notice without explicit consent for material changes to a business’s use of personal information would not serve the purpose of section 1798.100, subdivision (b). The subsection also adds the term “previously collected.” This change is necessary to clarify that the subsection applies when a business seeks to use previously collected personal information for a use that is materially different than what was previously disclosed to the consumer, not for new personal information that it seeks to collect. . As discussed in our prior post, on Friday, August 14, 2020, the California Office of Administrative Law (OAL) approved the California Office of the Attorney General’s (OAG) final CCPA regulations and filed them with the California Secretary of … Consistent with this legislative intent, the regulation provides guidance for instances in which a consumer’s attempt to exercise their CCPA rights is not submitted through a business’s designated methods or is deficient for a reason unrelated to the verification process. By requiring that a privacy control be designed to clearly communicate or signal that the consumer intends to opt-out of the sale of personal information, the regulation sets clear parameters for what the control must communicate so as to avoid any ambiguous signals. According to the Final Statement of Reasons, the WCAG’s “standard for making web content accessible by desktops, laptops, tablets, and mobile devices was developed through the cooperation of individuals and organizations around the world, with a goal of providing a shared standard for Web content accessibility that meets the needs of individuals, organizations, and … The August 14 regulations were also accompanied by an Addendum to the Final Statement of Reasons. Third, language has been added to clarify that a business may retain a record of the request for the purpose of ensuring that the consumer’s personal information remains deleted from the business’s records. June 3, 2020 – Alerts By Odia Kagan. The initial proposed definition of “notice at collection” required notice to be provided to consumers at or before the “time” of collection of personal information. In a press conference discussing the regulations, the AG’s Office stressed that the draft of the proposed regulations and Initial Statement of Reasons are among the best resources explaining the CCPA’s expected implementation. Former subsection (f), regarding the proposed opt-out button, has been deleted in response to the various comments received during the public comment period. Civil Code section 1798.140, subdivision (v), defines a “service provider” as one who “processes information on behalf of [the] business” that provided the personal information, pursuant to a contract that prohibits “retaining, using, or disclosing the personal information for a commercial purpose other than providing the services specified in the contract.” Relatedly, a business does not “sell” personal information when it transfers that data to a service provider, provided that the service provider does not “collect, sell, or use the personal information of the consumer except as necessary to perform the business purpose” of the business that provided the personal information. into a cold storage location and only accessing it once a year to batch delete any customer requests. (See ISOR, p. The California AG made it clear that the California Data Broker Registry was not only going to be essential for businesses to comply with who are in the business of buying or selling user data, but also pointed out that new industries and privacy innovation can be built with these registries via efforts to standardize global opt-out signals. In light of the comments received from the public, the OAG further supplements its statement of reasons in support of subsection (d) as follows. Both IAB and NAI encouraged members to share any data valuable against fighting COVID in the Senate hearing that was not on video, via their written statements for the hearing “Enlisting Big Data in the Fight Against Coronavirus.”, It’s clear that organizations who buy/sell/share user data, need to get much more serious about user consent, the categories of collection they undertake, and their potential legal exposure from not requesting user consent for a material change in collection purpose — and the CCPA guidance makes it clear that “simply putting up a new notice on a website after a consumer has already provided personal information, when that consumer may be unlikely to revisit the website (and even more unlikely to revisit the notice), is not meaningful consumer notice.”. In light of comments received from the public, the OAG further supplements its statement of reasons in support of subsection (a). First, the regulation now correctly cites to “section 999.317, subsection (b),” which requires a business to maintain records of consumer requests and how the business responded for 24 months. As the primary enforcer of the California Online Privacy Protection Act (Bus. While not surprising, the CCPA provided guidance that would be useful for companies like Apple and Google that have growing biometric security face scans used to open phones and other devices — those businesses will not be required to disclose this technical data in a response to a request to know, but must acknowledge they have the data. These restrictions are necessary because the consumer could have reasonably relied on the notice when interacting with the business and allowing it to collect their personal information. A few highlights from the final CCPA regulations: Service providers: Per the California Attorney General’s Final Statement of Reasons, a service provider that processes information in breach of the provisions of the agreement between the “business” and such service provider is subject to direct enforcement by the Attorney General, even if the business is not inclined to enforce. For a full list of changes along with brief explanations, please refer to the AG’s newly issued Addendum to Final Statement of Reasons. (See Sections 999.301, subd. One section on Page 12 included these comments: During preliminary rulemaking activities, the OAG learned that a consumer may not know who has and could be selling their personal information, given that the CCPA does not require businesses to disclose the specific persons or entities with whom they shared the consumer’s personal information. Not overwhelming them with notices for every minor change, which may result in notice.... 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