Everything You Need to Know About the Updated CA Data Privacy Regulations
Beginning on January 1, 2023, the California Privacy Rights Act (CPRA) will modify the California Consumer Privacy Act (CCPA) quite significantly. The two most notable changes are that the business-to-business exemption is gone and the definition of “consumer” has expanded to include employees and job applicants. Expanding coverage to employees and job applicants has always been available, but the other changes, which are just as important, will require more significant updates in our software, which we will go through below.
It is important to note that at the time of this writing, the new regulations have not yet been published and can change significantly…or not (such is California, unfortunately). In any event, you should rest assured through the holidays knowing that we’ve got you covered. All of the updates to our software noted below will take effect automatically in the new year.
SUMMARY OF CPRA UPDATES
1. Modified: Can no longer require state registration in “Authorized Agent” requests.
Legal Update: Businesses can no longer require that an “authorized agent” be registered with the California Secretary of State.
ComplyAuto Software: The Data Subject Access Request (DSAR) portal placed on your website will be updated to remove this field as a requirement before sending the request.
2. New: “Disproportionate effort” as a reason to decline certain requests.
Legal Update: A business can claim “disproportionate effort” to decline certain consumer requests if the time and resources expended to respond to the request outweighs the reasonably foreseeable impact to the consumer by not responding. In order for a business to claim “disproportionate effort,” it must already have in place adequate processes and procedures to receive and process requests in accordance with the CCPA and its accompanying regulations.
ComplyAuto Software: This new exception will be added to the software for certain request types.
3. New: Consumer correction of inaccurate information.
Legal Update: Consumers now have the right to request that a dealer correct inaccurate information about them. Not only will the dealer have to do this, but the dealer will have to notify all downstream Service Providers of any corrections.
ComplyAuto Software: The DSAR portal placed on your website will be updated with this new correction request and the notification of Service Providers will be completed automatically.
4. New: Foreign language translations of disclosures.
Legal Update: All CCPA/CPRA disclosures must be translated into foreign languages commonly used at the dealership.
ComplyAuto Software: The DSAR portal placed on your website will be updated to support five languages – Spanish, Korean, Tagalog, Chinese and Vietnamese – in accordance with census data and other California laws.
5. Modified: “Dark pattern” designs prohibited.
Legal Update: “Dark patterns” describe a user interface that was crafted by the author to trick or manipulate the user either to encourage or discourage certain behavior. In an effort to curb “dark patterns” as it relates to sharing personal data, the CPRA puts in place design parameters around the cookie banner to make it clearer for consumers.
ComplyAuto Software: The ComplyAuto cookie banner will now have an “Accept” and “Decline” button in the same size and color to fulfill these new requirements.
6. New: Expanding the definition of “opt out”
Legal Update: The “opt out” of selling data now extends to the “sharing” of information for the purpose of cross-context behavioral advertising or retargeting ads.
7. Modified: Disclosures requirements
ComplyAuto Software: All privacy policies provided to our clients will be updated on January 1, 2023.
8. Modified: Standardized opt out signals.
Legal Update: Dealers must now honor all standardized opt out signals in addition to Global Privacy Controls (GPC). New disclosures are required to notify the consumer that the various signals have been honored.
ComplyAuto Software: Cookie banners will be updated to support these standard and popular formats for opt out signals and their associated disclosures.
9. New: Opt out of specific use of “sensitive information”
Legal Update: Consumers now have the right to opt-out of the use and disclosure of certain categories of “sensitive information” for the purpose of inferring characteristics about consumers. For example, geo-targeting and geofencing can give precise geolocation data that businesses can use to infer whether someone has shopped at a competitor or where they live. Using other sensitive information, such as Social Security Numbers (SSN), biometric data, government-issued ID numbers, bank account numbers, and health information, is also subject to this right.
10. New: A “Your California Privacy Rights” button.
Legal Update: A new button and link titled “Your California Privacy Rights” will replace the “Do Not Sell My Personal Information” link for those Dealers who both “sell” and “use sensitive data” as those terms are defined under the CCPA. The button must be conspicuously displayed on the website and in the footer of the site.
ComplyAuto Software: The new button and link will be changed in the banner and in other applicable disclosures. This should be a welcomed change for dealers as it removes the “do not sell” language. We will also add a footer with the required language.
11. Modified: Notify “Third Parties” of deletion requests.
Legal Update: Upon receiving (and subsequently fulfilling) a consumer’s deletion request, dealers must now notify all vendors of the deletion request and not just the “Service Providers.” The dealer must manually delete the data if possible. If not, the vendors must be notified with a specific legal notice.
ComplyAuto Software: All “Service Providers” and “Third Parties” will be notified of fulfilled deletion requests.
12. Modified: Notify “Third Parties” of opt out requests.
Legal Update: Upon receiving (and subsequently fulfilling) a consumer’s opt out request, dealers must now notify all downstream “Third Parties” regardless of when the personal information was last shared. There are also specific disclosure requirements pertaining to these notifications.
ComplyAuto Software: All “Third Parties” will be notified of fulfilled opt out requests and new legal disclosures will be added to these notifications.
13. Modified: Service Provider CCPA addendum updated.
Legal Update: “Service Providers” must sign a new CCPA addendum that lists the specific “Business Purposes” (as defined by the CCPA) for which the “Service Providers” use or process the dealer’s data. This contract also places new restrictions and obligations regarding the use of the data. Dealers must now regularly assess the “Service Providers” compliance with those obligations.
ComplyAuto Software: The CCPA addendum will be revised and the prior version will be voided. A new assessment for Service Providers will be made available to show annual compliance with the terms of the contract.
14. New: Third Party CCPA addendum required for if they “sell” data.
Legal Update: Now, a “Third Party” to whom the dealer “sells” data has to sign a specific CCPA addendum. This includes OEMs. The contract contains specific provisions as required by new CPRA regulations.
ComplyAuto Software: A new template has been added for Third Parties to whom the dealer “sells” data. The software will automatically determine which vendors will need to sign this contract.
15. Modified: Employee training.
Legal Update: Applicable employees will need to be trained on these new CPRA laws and regulations.
ComplyAuto Software: The CCPA training course will be updated with new course content to meet this requirement.
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