March 27, 2019
To learn more about Lathrop Gage, click here ›
The California Consumer Privacy Act Part 2: Does it Apply to My Business?
As we explained in our last alert, California’s new comprehensive data privacy law is to take effect on January 1, 2020. For companies subject to this law, compliance will require a substantial investment of time, effort, and money.
So, what makes a business subject to this law? In this alert, we look at the applicability of the California Consumer Privacy Act (CCPA), as well as the exceptions and limitations of the law.
The first step is to determine whether the business collects “personal information” from California residents. The CCPA’s definition of “personal information” is broad.
The CCPA will still not apply unless the business meets one of three numerical thresholds. In the prior year, the business must have
The CCPA exempts certain financial and health personal information, but not financial services or health care businesses generally. All personal information, even exempted information, remains subject to data breach lawsuits under the CCPA.
Certain Financial Information. If the business is a bank, brokerage, insurance company, credit reporting agency or other financial services company, the CCPA does not apply to personal information
The GLBA’s Privacy Rule and this exemption applies to the personally identifiable information of an existing customer, such as a customer with an online account. Marketing and other communications unrelated to the financial services may not meet the exemption.
Certain Health Information. The CCPA also does not apply to:
To reiterate, the CCPA exemptions apply only to the information collected for the purpose of complying with the health care and financial statutes and regulations. If a business collects demographic or website visitor information unrelated to its services, the CCPA arguably applies to that information.
© 2019 LATHROP GAGE LLP, ALL RIGHTS RESERVEDCLICK HERE TO UNSUBSCRIBE | POWERED BY FIRMSEEK
The information contained in this document is provided to alert you to legal developments and should not be considered legal advice. Specific questions about how this information affects your particular situation should be addressed to one of the individuals listed. No representations or warranties are made with respect to this information, including, without limitation, as to its completeness, timeliness, or accuracy, and Lathrop Gage shall not be liable for any decision made in connection with the information. The choice of a lawyer is an important decision and should not be based solely on advertisements.
If you do not wish to receive any further communication from Lathrop Gage, please send an email to firstname.lastname@example.org with the subject UNSUBSCRIBE.