California Actively Enforcing Data Broker Registration, Warn Lawyers
Two law firms alerted clients to increased data broker oversight by California in blog posts last week.
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The warnings followed the California Privacy Protection Agency announcing Feb. 27 that it is forcing California-based Background Alert to close or face a $50,000 fine for failing to register as a data broker (see 2502270023). It was the state privacy agency’s seventh action stemming from an investigative sweep of California Delete Act compliance that it announced Oct. 30.
“Given CPPA’s active enforcement of data broker registration obligations in California, it is important for businesses to determine whether they are data brokers and to register with the CPPA to avoid potential fines for late registration,” blogged Kelley Drye attorneys last Wednesday.
Cozen O’Connor lawyers blogged Thursday, “These most recent enforcement actions suggest that the CPPA is ready and willing to take action against companies of all sizes, including those that are not based in California, that sell data of California individuals but have not registered as a data broker.”
“Due to the Delete Act’s wide-ranging applicability, organizations collecting personal data from California consumers should evaluate whether they are required to comply with the Delete Act,” said the Cozen O’Connor attorneys: Covered organizations “should ensure they implement appropriate measures to comply, including registering as a data broker where required, and making the necessary disclosures in their privacy policy.”