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California’s Governor Jerry Brown has signed Assembly Bill 375, enacting the California Consumer Privacy Act of 2018. This Act, which has an effective date of January 1, 2020, is intended by the Legislature to further Californians’ right to privacy by giving consumers an effective way to control their personal information. It does so by granting California residents a broad range of new rights and by imposing on businesses that collect or sell personal information a variety of new requirements.
Among other things the Act provides the following:
The businesses to which the Act is applicable include any sole proprietorship, partnership, LLC, corporation, association or other for-profit entity that does business in California that 1) collects consumers’ personal information and that 2) satisfies one or more of the following thresholds:
The Act also applies to entities that control or are controlled by a business meeting the above criteria and that share common branding.
The term “consumer” is defined as a natural person who is a California resident.
Although the California Consumer Privacy Act does not go into effect until 2020, affected businesses may wish to begin taking the necessary steps to make sure they will be in compliance when 2020 arrives. While this article provides a general overview of the Act, businesses and their legal advisers should consult Assembly Bill 375 and Title 1.81.5 (commencing with Sec. 1798.100) to Part 4, Division 3 of the Civil Code—where the Act will be codified.
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