We have previously reported a ballot initiative known as the California Consumer Privacy Act of 2018 (“CCPA”), that is expected to be on the November ballot. If passed, it would make sweeping changes to consumer privacy protection rights for Californians, likely creating a new national standard. On June 21st, the California Assembly amended AB- 375, formerly a bill that would have regulated privacy practices of Broadband Internet Access Service Providers in reaction to the FCC’s withdrawal of its BIAS privacy rule, to propose an alternative to CCPA. It has been reported that the initiative’s sponsors will pull the initiative if AB-375 is passed and signed into law by the Governor. However, the legislature will have to move fast, because after June 28 the November ballot will be set and the initiative cannot be withdrawn. If AB-375 becomes law in time to kill the initiative much of what the initiative seeks to accomplish will become law, but notably not a private right of action and class action relief for most violations. There would be a private right of action for a data breach incident resulting from security that failed to meet the California standards but only if the Attorney General declined to bring an action. We will be tracking the legislative effort to avert CCPA and reporting on whether the June 28 deadline is met, as well as detail on what new standards AB-375 will mandate if it becomes law.
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