ARTICLE
30 April 2019

Bill To Expand CCPA Private Right Of Action Moves Forward

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BakerHostetler

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Recognized as one of the top firms for client service, BakerHostetler is a leading national law firm that helps clients around the world address their most complex and critical business and regulatory issues. With five core national practice groups — Business, Labor and Employment, Intellectual Property, Litigation, and Tax — the firm has more than 970 lawyers located in 14 offices coast to coast. BakerHostetler is widely regarded as having one of the country’s top 10 tax practices, a nationally recognized litigation practice, an award-winning data privacy practice and an industry-leading business practice. The firm is also recognized internationally for its groundbreaking work recovering more than $13 billion in the Madoff Recovery Initiative, representing the SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC. Visit bakerlaw.com
We have previously written about California SB 561 here, introduced by Senator Jackson (D) and supported by the California Attorney General.
United States Privacy

We have previously written about California SB 561  here, introduced by Senator Jackson (D) and supported by the California Attorney General (AG), that among other things would vastly expand the CCPA's private right of action and remove the right to cure before the AG can seek civil penalties.  On April 9 the California Senate Judiciary Committee held a hearing on the bill, a recording of which is available here.  The committee voted 6 to 2 to refer the bill to the Senate Appropriations Committee.  There was concern expressed by some members of the committee, including some that voted in favor of moving the bill forward, as to the scope of the private right of action, its impact on businesses and the ambiguity of the current text.  Senator Jackson promised to work with stakeholders to explore potential refinement of the private right of action so long as it maintained the ability for consumers whose CCPA privacy rights are violated (the current law restricts the private right of action to certain types of data security breaches) to seek meaningful redress and not have to rely on the AG to enforce the CCPA.  It was noted that the restriction of the private right of action was fundamental to the compromise that lead to the bill, however, Senator Jacksons and others rejected that as not relevant, or at least not binding.  We had previously encouraged further limitation of the private right of action.  It appears that quite the opposite may be on its way to fruition.  We will continue to monitor its progress.

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