California

On July 9, 2024, the FTC and California Attorney General settled a case against NGL Labs (“NGL”) and two of its co-founders. NGL Labs’ app, “NGL: ask me anything,” allows users to receive anonymous messages from their friends and social media followers. The complaint alleged violations of the FTC Act, the Restore Online Shoppers’ Confidence

On February 9, the Third Appellate District of California vacated a trial court’s decision that held that enforcement of the California Privacy Protection Agency’s (“CPPA”) regulations could not commence until one year after the finalized date of the regulations.  As we previously explained, the Superior Court’s order prevented the CPPA from enforcing the regulations

Ahead of its December 8 board meeting, the California Privacy Protection Agency (CPPA) has issued draft risk assessment regulations.  The CPPA has yet to initiate the formal rulemaking process and has stated that it expects to begin formal rulemaking next year, at which time it will also consider draft regulations covering “automated decisionmaking technology” (ADMT), cybersecurity audits, and revisions to existing regulations.  Accordingly, the draft risk assessment regulations are subject to change.  Below are the key takeaways:

When a Risk Assessment is Required: The draft regulations would require businesses to conduct a risk assessment before processing consumers’ personal information in a manner that “presents significant risk to consumers’ privacy.”  The draft regulations identify several activities that would present such risk:

  • Selling or sharing personal information;
  • Processing sensitive personal information (except in certain situations involving employees and independent contractors);
  • Using ADMT (1) for a decision that produces legal or similarly significant effects concerning a consumer, (2) to profile a consumer who is acting in their capacity as an employee, independent contractor, job applicant, or student, (3) to profile a consumer while they are in a public place, or (4) for profiling for behavioral advertising; or
  • Processing a consumer’s personal information if the business has actual knowledge the consumer is under 16.

Continue Reading CPPA Releases Draft Risk Assessment Regulations

On October 10, 2023, California Governor Gavin Newsom signed S.B. 362, the Delete Act (the “Act”), into law.  The new law represents a substantive overhaul of California’s existing data broker statute, which requires data brokers to register with the California Attorney General annually.  The passage of the Act follows a renewed interest in data

California recently passed a series of new regulations affecting its “pay-to-play” laws that limit political contributions by state and local government contractors and others involved in proceedings on contracts, licenses, permits, and other “entitlements for use” in the state.  These regulations implement changes to the law that took effect this year, which include applying the

The California Fair Political Practices Commission (FPPC) adopted on Thursday higher political contribution limits and public officer gift limits for the 2023-2024 political cycle. The new limits take effect on January 1, 2023.

Contribution Limits

Under the new limits, an individual, business entity, or committee/PAC can contribute $5,500 per election to candidates for state legislature, up from $4,900.  This means that individuals may generally give $11,000 per candidate per cycle, because the primary and general are considered separate elections.  The same limit also applies to a candidate for local office unless the locality has adopted its own limits.  The limit on contributions from an individual, business entity, or committee/PAC to a candidate for governor also increased, from $32,400 to $36,400 per election.  The limit on contributions to PACs that contribute to candidates increased from $8,100 to $9,100 per year, though PACs can also have a separate, noncontribution account with no limit.

The following chart has additional details on the limits for individuals in 2023 and 2024:

An individual, business entity, or committee/PAC may contribute to…

Governor $36,400 per election
Lt. Governor, Secretary of State, Attorney General, Treasurer, Controller, Supt. of Public Instruction, Insurance Commissioner, and Board of Equalization $9,100 per election
Senate and Assembly $5,500 per election
City and County Candidates if no locally enacted limit $5,500 per election
CalPERS/CalSTRS $5,500 per election
Committee (PAC), other than a Political Party, that contributes to State Candidates $9,100 per calendar year
Political Party Account for State Candidates $45,500 per calendar year
Small Contributor Committee $200 per calendar year
Committee Non-Contribution Account No Limit per calendar year

Continue Reading California Raises Campaign Contribution and Gift Limits for 2023-2024