California Consumer Privacy Act: The Challenge Ahead – The CCPA’s “Reasonable” Security Requirement

This is the eleventh installment in Hogan Lovells’ series on the California Consumer Privacy Act. Much of the focus on the California Consumer Protection Act (“CCPA”) has been on the new rights that it affords California consumers, including the rights to access, delete, and opt out of the sale of their personal information. But arguably the greatest risk to covered businesses involves data security, as the CCPA creates for the first time a private right of action with substantial statutory penalties for breaches involving California consumers’ personal information. This installment of the Hogan Lovells’ CCPA series explains the CCPA’s security requirement and consequences for non-compliance, and describes security controls that most organizations can implement to mitigate this risk. Available statutory penalties The CCPA allows consumers to sue businesses when their “nonencrypted or nonredacted personal information . . . is…

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