Ad Industry Urges Cal AG to Delay CaCPA Enforcement

While the California Consumer Privacy Act (CaCPA) took effect on January 1, 2020, the law prohibits Attorney General Becerra from bringing any enforcement action until the earlier of six months after publication of final regulations by the Attorney General or July 1, 2020.  Since regulations have yet to be finalized, that means a July 1st date for enforcement.

That looming deadline is becoming more pressing as confusion reigns as to certain key provisions such as what constitutes a sale of consumer data.  Santa Clara Law Professor Eric Goldman, a leading authority in this space, explained that the uncertainty has “produced anarchy among businesses in California, with each one possibly interpreting it differently.”

Ad Industry Letter to Becerra

Enter the leading advertising industry associations – the American Association of Advertising Agencies (4A’s), the Association of National Advertisers (ANA), the American Advertising Federation (AAF), the Interactive Advertising Bureau (IAB) and Network Advertising Initiative (NAI) – who have sent a letter to California Attorney General Becerra urging him to delay enforcement until six months after finalization of regulations under the CaCPA.

The industry coalition stressed that the draft rules “presented significant new and unprecedented requirements” such as the requirement for a business upon receipt of a consumer opt-out request, to “notify all third parties to whom it has sold the personal information of the consumer within 90 days prior to the business’ receipt of the consumer’s request that the consumer has exercised their right to opt-out and instruct them not to further sell the information.”  This was on top of “entirely new recordkeeping obligations, notice requirements, and verification rules”.

The coalition argued

Unfortunately, it is presently unclear when the rules will be finalized and whether they will be further amended. Just five months before enforcement is scheduled to begin, companies that are subject to the CaCPA are faced with the likelihood that the draft rules could substantially change from their present form and impose entirely new requirements

As a result, the coalition sought a pledge from the Attorney General to delay the enforcement date until six months after the CaCPA regs become final, in order to avoid consumer and business confusion.

This short deferral will give businesses the time they need to understand and effectively operationalize the rules helping ensure consumers have access to the rights afforded under the new law.

AG’s Office – Will Not Be Responding

The Attorney General’s office, however, has brushed aside the industry initiative, stating in an email: “We will not be responding to individual input outside of the formal rule-making process.”