On June 21, 2018, California lawmakers introduced AB 375, the California Consumer Privacy Act of 2018 (the “Bill”). If enacted and signed by the Governor by June 28, 2018, the Bill would introduce key privacy requirements for businesses, but would also result in the removal of a ballot initiative of the same name from the November 6, 2018, statewide ballot. We previously reported on the relevant ballot initiative.
The Bill expands some of the requirements in the ballot initiative. For example, if enacted, the Bill would require businesses to disclose (e.g., in its Privacy Notice) the categories of personal information it collects about California consumers and the purposes for which that information is used. The Bill also would require businesses to disclose, upon a California consumer’s verifiable request, the categories and specific pieces of personal information it has collected about the consumer, as well as the business purposes for collecting or selling the information and the categories of third parties with whom it is shared. The Bill would require businesses to honor consumers’ requests to delete their data and to opt out of the sale of their personal information, and would prohibit a business from selling the personal information of a consumer under the age of 16 without explicit (i.e., opt-in) consent.
A significant difference between the Bill and the ballot initiative is that the Bill would give the California Attorney General exclusive authority to enforce most of its provisions (whereas the ballot initiative provides for a private right of action with statutory damages of up to $3,000 per violation). One exception would be that a private right of action would exist in the event of a data breach in which the California Attorney General declines to bring an action.
If enacted, the Bill would take effect January 1, 2020.