ARTICLE
11 July 2023

The Comprehensive Privacy Law Deluge: Approaching Notice Obligations

SM
Sheppard, Mullin, Richter & Hampton LLP

Contributor

Businesses turn to Sheppard to deliver sophisticated counsel to help clients move ahead. With more than 1,200 lawyers located in 16 offices worldwide, our client-centered approach is grounded in nearly a century of building enduring relationships on trust and collaboration. Our broad and diversified practices serve global clients—from startups to Fortune 500 companies—at every stage of the business cycle, including high-stakes litigation, complex transactions, sophisticated financings and regulatory issues. With leading edge technologies and innovation behind our team, we pride ourselves on being a strategic partner to our clients.
When thinking about privacy notice obligations, companies often -incorrectly- leap to the wording in their privacy policies.
United States California Colorado Connecticut Delaware Nevada Privacy
Sheppard, Mullin, Richter & Hampton LLP are most popular:
  • within Cannabis & Hemp topic(s)

When thinking about privacy notice obligations, companies often -incorrectly- leap to the wording in their privacy policies. The new comprehensive state privacy laws are a reminder that notice obligations are a bit broader than mere privacy policies. To the extent that these laws apply to your organization (see our prior applicability post) there are some notice-related obligations to keep in mind.

For many companies, the biggest "change" is that these laws contain obligations to provide individuals with notice (a privacy policy) not just online -as existed under prior state online privacy laws (California, Delaware and Nevada)- but at any point that personal information is being collected. In other words, in offline or by phone. Some, like California, contain details about how to provide offline notice. Previously, other than state laws requiring privacy notices, there were only sector or activity-specific laws that contained the requirement. Companies nevertheless had them because of FTC guidance and expectation. Companies also had them to mitigate and minimize risk that consumers might expect information was treated in a certain way. The privacy policy was a tool to explain the company's actual practices.

In terms of content, for entities that already comply with GDPR or CCPA, the requirements are not significantly different. Thus if your organization has already updated its privacy policy to address CPRA requirements, little additional content will be needed to address the newer state laws. At a high level, content required is as follows (refer to our effective date post for timelines, which may impact when an organization decides to amend its policy to address these laws):

CA CO CT FL IA IN MT TN TX UT VA
Categories of personal information and purposes of processing x x x x x x x x x x x
If sensitive information will be processed x x x x
If information will be shared and categories of those third parties x x x x x x x x x x x
Consumers' rights, and how to exercise them x x x x x x x x x x x
How to appeal a decision x x x x x x x x x x
How to opt out of certain processing x x
Date policy was last updated (CalOPPA also requires effective date) x x
Contact information for questions or concerns x x x x

This list is not exhaustive, and many states have specific -and fairly complex- requirements about what these notices look like and content to include in the categories listed above.

Putting it into Practice: As we move past Colorado and Connecticut's effective dates, presumably organizations have already reviewed and updated their privacy policies. However as more and more states put "comprehensive" privacy laws in place there will be a need to continue to review those statements. Internal procedures for regular review of privacy policies can be a helpful mechanism to ensure the document not only keeps up with the regulatory requirements, but also remains factually accurate.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

[View Source]

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More