California attorney general settles with media companies for alleged privacy act violations

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On October 31, the Superior Court of the State of California approved the attorney general’s proposed settlement with an internet-based live TV company and media streaming service resolving allegations that the companies violated the California Consumer Privacy Act (CCPA) by failing to provide consumers with easy-to-use methods to opt out of the selling and sharing of their personal information and failing to provide adequate privacy protections for children.

Under the terms of the settlement, the companies agreed to: (i) pay a civil penalty in the amount of $530,000; (ii) cease directing consumers seeking to implement their CCPA out-out rights to cookie preferences; (iii) cease requiring logged-in customers to fill out a webform to exercise opt-out rights; (iv) provide an opt-out mechanism on all platforms; and (v) allow parents to designate one or more user profiles as a “kid’s profile” that defaults to no sale and sharing of personal information and no targeted advertising.

Specifically, under the settlement, the defendants must provide clear and conspicuous notice when collecting consumers’ personal information from third parties, selling or sharing that data, or conducting behavioral advertising. Defendants must also provide a “Do Not Sell or Share My Personal Information” notice or an opt-out link, among others, to comply with state law. The court also outlined special rules regarding children and minors in the settlement, providing that the defendants must create “kids” profiles that defaults to “off” regarding the sale and sharing of personal information obtained from third parties.

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