On May 25, 2023 Gov. Ron DeSantis signed into law an amendment (Amendment) to the Florida Telephone Solicitation Act (FTSA), clarifying ambiguities and corralling what has been a runaway gust of telemarketing litigation since the passage of the FTSA almost two years ago. Under the FTSA, an individual could bring suit against a telemarketer for using an automated telephone dialing system (ATDS) that simply selected phone numbers or dialed telephone numbers to place calls or send messages without prior consent. In other words, even if the caller dialed the phone number manually, the call would still be subject to the FTSA if the number was automatically selected using software. This Amendment clarifies that suit can be brought only if the ATDS both selects and dials the phone number. While still not specifically defining what constitutes an ATDS, this two-part test should stem the flow of FTSA litigation by greatly narrowing the present standard.

Continue Reading Sunshine State Clarifies Telemarketing Regulation, Quieting Storm of Litigation Blown In by Florida Telephone Solicitation Act

Find an umbrella. . . .  The recent deluge of state-level privacy legislation continues.  Legislatures in three additional states—Indiana, Montana, and Tennessee—have adopted comprehensive privacy laws.  The Indiana Consumer Data Protection Act (ICDPA) was signed into law on May 1, 2023, making Indiana the seventh state to adopt such a law, and legislatures in Montana and Tennessee have passed legislation that is expected to be signed into law by their respective governors soon.  Only one month ago, Iowa became the sixth state to adopt a comprehensive privacy law, and, of course, California, Colorado, Connecticut, Utah, and Virginia each have laws that either are already in effect or that will go into effect later his year.  Meanwhile, on April 27, 2023, the governor of Washington signed into law the My Health My Data Act, a significant development that will impact many businesses that collect or process consumer health data (expect an update on this topic here soon).  

Continue Reading When It Rains, It Pours (State Privacy Laws)

On March 29, 2023, the California Office of Administrative Law (the “OAL”) approved the first substantive set of California Privacy Rights Act (“CPRA”) regulations from the California Privacy Protection Agency (the “CPPA”), which we addressed in a previous blog. Those regulations went into effect immediately. As discussed in a recent episode of Ropes & Gray’s privacy podcast, The Data Day, the CPPA has also begun consideration of an additional set of regulations that would implement other CPRA requirements, issuing an Invitation for Preliminary Comments on Proposed Rulemaking Cybersecurity Audits, Risk Assessments, and Automated Decisionmaking. Enforcement of the CPRA, including its implementing regulations, is scheduled to begin on July 1, 2023. However, on March 30, 2023—just one day after the OAL approved the CPPA’s regulations—the California Chamber of Commerce announced that it had filed suit in Sacramento Superior Court seeking to delay enforcement until 12 months after a final and complete set of regulations has been adopted.

Continue Reading California Finalizes Privacy Regulations: Enforcement Scheduled to Begin in July 2023

On March 28, Iowa Governor Kim Reynolds signed Senate File 262 into law, making Iowa the sixth state to adopt comprehensive data privacy legislation. The Iowa Consumer Data Protection Act (ICDPA) is set to take effect on January 1, 2025.

The ICDPA is largely business friendly and mostly comparable to the Utah Consumer Privacy Act. Businesses that are already in compliance with other states’ privacy laws—such as the California Consumer Privacy Act—likely will not need to make any additional changes to their policies or practices to comply with the ICDPA. The ICDPA does not require businesses to conduct risk assessments, practice purpose limitations or data minimization, and businesses have a generous 90-day cure period for suspected violations. Furthermore, as we’ve seen with the other states that have recently passed comprehensive privacy laws, the law does not provide a private right of action for consumers, as enforcement authority sits exclusively with the Iowa Attorney General.

Continue Reading Iowa Becomes Sixth State to Pass Comprehensive Data Privacy Law

On February 17, 2023, the exposure risk of a company found to be violating Illinois’ Biometric Information Privacy Act (BIPA) increased to a potentially crippling amount. What was previously commonly understood to entail a maximum of $1,000 per negligent (or $5,000 for reckless) violation per plaintiff now authorizes a $5,000 fine per instance of collection, turning—for example—the nonconsensual use of an employee’s fingerprint for clocking in and out of work multiple times per day to 1,040 violations of BIPA per year if a full-time employee clocks in and/or out just four times each day, potentially resulting in estimated damages of $1,040,000 for negligent violations or $5,200,000 for reckless violations

Continue Reading BIPA Ahead: A New Ruling Introduces a Staggering Depth Beneath the Tip of the BIPA Iceberg

Just in time for Data Privacy Day, the California attorney general (“California AG”) announced a new round of privacy investigations targeting the retail, travel, and food service industries.  The investigative sweep will focus on “popular apps” that allegedly fail to honor consumer requests to opt out of the “sale” of their personal information.  The sweep will also review responses to requests sent on behalf of consumers by authorized agents such as the “Permission Slip” application developed by Consumer Reports.  Even with the considerable attention owed to the new requirements of the California Privacy Rights Act (“CPRA”)—which amends and expands on the California Consumer Privacy Act (“CCPA”)—along with the significant recent activity by the California Privacy Protection Agency, businesses should not overlook their ongoing obligations to comply with the CCPA prior to the CPRA’s enforcement beginning on July 1, 2023.

Continue Reading California AG Announces New CCPA Sweep

On Friday, February 3, 2023, the California Privacy Protection Agency (the “CPPA”) Board (the “Board”) approved draft regulations issued under the California Consumer Privacy Act, as amended and expanded by the California Privacy Rights Act (together, the “CCPA”). The draft regulations will now go through review by the Office of Administrative Law (the “OAL”), the final step in the rulemaking process before the regulations are scheduled to take effect. The draft agreed upon by the Board is in substantially the same form as the draft regulations published in November 2022 with only minor grammatical and stylistic changes. As such, the draft regulations will have a significant impact on many businesses if approved, adding specifics around the CCPA’s proportionality requirements, contracts with service providers and other third parties, opt-out preference signals, and processes for responding to data subject rights requests. In the same meeting, the Board also requested public comment on topics that are likely to be covered in a new set of regulations from February 10, 2023, through March 27, 2023.

Continue Reading Across the Finish Line (Almost): Revised California Consumer Privacy Act Regulations Approved by California Privacy Board

In 2022, children’s online privacy and safety has been top of mind in many state legislatures and interest groups, and the California legislature successfully passed legislation focused on children’s privacy. California’s new bipartisan law (AB-2273), the California Age-Appropriate Design Code Act (“CAADCA”), which targets privacy and safety protections for children and teens on online platforms such as TikTok, Instagram, and YouTube, was signed by Governor Gavin Newsom on September 15, 2022, and goes into effect July 1, 2024.

Continue Reading California’s New Children’s Privacy Law is Set to Come into Effect in 2024

In the new year, comprehensive privacy laws go into operation in five states:  California (January 1), Virginia (January 1), Colorado (July 1), Connecticut (July 1), and Utah (December 31).  Subsequent blog posts will cover each of these laws in detail.  In this post, we begin a series analyzing the impact of the California Privacy Rights Act (“CPRA”) in greater depth. 

The CPRA will go into operation on January 1, 2023 and will be enforceable by the newly created California Privacy Protection Agency (“CPPA”) beginning on July 1, 2023. Passed by ballot initiative in November 2020, the CPRA amends and expands the California Consumer Privacy Act (together with the CPRA, the “CCPA/CPRA”), already the most far-reaching privacy legislation currently in operation in the United States.  As amended, the CCPA/CPRA expands consumer privacy rights and data processing obligations, creating new rights to limit the use of sensitive personal information and to correct personal information stored by a business.  It implements certain “principles of processing” like the purpose limitation, requiring businesses to evaluate their uses of personal information to ensure they are proportionate to the requirements of disclosed business and commercial purposes.  It also enhances opt-out rights in the context of cross-context behavioral advertising and requires that businesses enter into new contractual terms with service providers to which they disclose the personal information of California residents.

Continue Reading Companies Wrestle with Compliance in the Lead Up to Effectiveness of the CPRA and Other State Privacy Laws