Can you Zigzag? California AG Releases Latest Draft of CCPA Regulations

Sheppard Mullin Richter & Hampton LLP

On March 11, 2020, the second set of modifications (or the third version) of the CCPA draft regulations were released. While the number of substantive changes dwindled in this version, there are a number of drafting corrections and a few modifications of note. Namely:

  • Removal of the suggested UX for the “do not sell” opt-out button, with no alternative proposed. The statute still contemplates that a “recognizable and uniform” opt-out logo or button will be made available on or before July 1, 2020, so stay tuned for something in the final draft! (§1798.185(a)(4)(C); 999.306(f));
  • Removal of the addition that was made to the last draft attempting to clarify when IP addresses constitute “personal information” or not (999.302);
  • Reinsertion of the requirement for businesses to identify the categories of sources from which personal information is collected and the business/commercial purpose for collecting or selling the information in its privacy policy. Unlike the first draft, this language does not require such disclosures “for each” category of personal information (999.308(c)(1)(e)-(f));
  • Addition to clarify that even if a business withholds sensitive data in a request to know, the business should provide a description of that information withheld (999.313(c)(4)); and
  • Clarification that permitted service provider purposes includes internal use to build or improve the quality of its services, provided however that such use does not include building or modifying household or consumer profiles to use in providing services to another business (999.314(c)(3)).

As with the last set of modifications, which we discussed here, the public has another 15 days (March 27, 2020) to submit written comments. If no additional changes are made, a final rulemaking record will be submitted to the Office of Administrative Law. The OAL has 30 working days to review the record for approval.

Putting it Into Practice: With just 106 days to go until enforcement, now is the time for companies to take a hard look at the state of their CCPA compliance and prepare for some potential last minute updates once the AG releases the final regulations. The limited number of changes in this last draft signals that the next draft may (finally) be final!

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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