How We Spent Our Summer Vacation or Summary of CCPA Amendments

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The long anticipated amendments to the CCPA were passed by the California Legislature in early September and now await Governor Newsom’s signature.  Some of the changes were “clean up” amendments to update cross references, standardize language, and generally address issues of drafting.  What follows is a summary of the most significant and substantive amendments:

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FTC Litigation with D-Link Ends with Comprehensive Settlement

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In 2017, the FTC filed a complaint against D-Link Systems, Inc. (D-Link) alleging that the Taiwan-based computer networking equipment manufacturer had taken inadequate security measures which left its wireless routers and Internet-connected cameras vulnerable to hackers. In early July, D-Link agreed to a settlement that includes a requirement that it implement a comprehensive software security program, and obtain biennial, independent third-party assessments of its software security program for 10 years.

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Further Expansion of Data Security Requirements in FTC Order with LightYear Dealer Technologies

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The FTC has entered into a settlement with LightYear Dealer Technologies, doing business as DealerBuilt, a technology company that develops and sells dealer management system (DMS) software and data processing services to automotive dealerships nationwide. The settlement resolves allegations that DealerBuilt engaged in a number of unreasonable data security practices. The DealerBuilt’s DMS software tracks, manages, and stores information related to all aspects of a dealership’s business, including sales, finance, inventory, accounting, payroll, and parts and service and collects and maintains personal and competitively sensitive information about consumers and employees.

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Nevada’s Privacy Law Granting Opt-Out Rights Is First Out of the Gate

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On May 29, 2019, Nevada Governor Steve Sisolak signed into law SB 220, which amends Nevada’s security and privacy law to require an operator of a website or online service for commercial purposes to permit consumers to opt-out of the sale of any covered personally identifiable information that the operator has collected or will collect about the consumer. The law becomes effective October 1, 2019, several months before the California Consumer Privacy Act’s (CCPA) effective date of January 1, 2020, and is therefore set to become the first of its kind to be implemented in the U.S.

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New Requirements for FTC Data Security Settlements

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Two of the Federal Trade Commission’s (FTC’s) most recent data security settlements include new requirements that go beyond previous data security settlements. The new provisions (1) require that a senior corporate officer provide to the FTC annual certifications of compliance and (2) specifically prohibit making misrepresentations to the third parties conducting required assessments. A statement accompanying these settlements noted that the FTC has instructed staff to examine whether its privacy and data security orders could be strengthened and improved.

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Hand Me the Map, Please: Webinar Recap

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The critical role of data mapping in CCPA readiness and compliance

Although the California Consumer Privacy Act (CCPA) does not explicitly require that businesses engage in data mapping or relationship mapping, they probably won’t be able to develop effective CCPA compliance strategies without having both. Businesses that have engaged in data mapping in preparation for GDPR compliance will be able to leverage some of that work.

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