On February 10, 2023, the California Privacy Protection Agency (CPPA) issued an invitation for public commentary on the topics that will be included in their future rulemaking: cybersecurity audits, risk assessments and automated decision-making. This invitation was among the decisions made by the CPPA at their public board meeting on February 3, where they voted unanimously to approve the final text of the California Privacy Rights Act (CPRA) regulations, the implementing regulations for the CPRA, which amends the existing California Consumer Privacy Act (CCPA).
Cybersecurity audits, risk assessments and automated decision-making are all areas of CPPA rulemaking authority added by the CPRA. The CPPA’s invitation for commentary specifies questions the agency has for each of these topics, including but not limited to:
- Cybersecurity Audits – What are some of the current laws requiring cybersecurity audits and what models do they use?
- The CPPA is looking to learn about the processes businesses have implemented to comply with these laws, as well as any gaps or weaknesses and their impact on consumers.
- Risk Assessments – How should the CPPA determine what processing of personal information presents significant risk to consumer privacy or security?
- Here the CPPA is interested in hearing about different models or factors for determining when processing requires a risk assessment due to consumer risk, including the European Data Protection Board (EDPB) Guidelines on Data Protection Impact Assessments.
- Automated Decision-making – How should the CPPA handle access and opt-out rights for businesses using automated decision-making?
- The approach of existing laws, frameworks or best practices and their weaknesses is of interest to the CPPA. The CPPA is also looking for details on the prevalence of algorithmic discrimination and how access and opt-out rights may address it.
Companies that have been on the sidelines observing the CPRA regulatory process before taking action now have a final blueprint for what is required of them. Compounding the urgency, the final regulations arrive on the heels of the California Attorney General’s (AG) publishing of enforcement examples from mobile app companies over compliance with provisions of the CCPA. Meanwhile, the CPPA’s administrative enforcement powers take effect July 1, 2023. This comment period presents a great opportunity to help shape key lingering regulatory issues for California’s flagship privacy agency.
Comments are due by March 27, 2023, at 5:00 p.m. ET.
Cybersecurity audits, risk assessments and automated decision-making are all areas of CPPA rulemaking authority added by the CPRA. The CPPA’s invitation for commentary specifies questions the agency has for each of these topics, including but not limited to:
- Cybersecurity Audits – What are some of the current laws requiring cybersecurity audits and what models do they use?
- The CPPA is looking to learn about the processes businesses have implemented to comply with these laws, as well as any gaps or weaknesses and their impact on consumers.
- Risk Assessments – How should the CPPA determine what processing of personal information presents significant risk to consumer privacy or security?
- Here the CPPA is interested in hearing about different models or factors for determining when processing requires a risk assessment due to consumer risk, including the European Data Protection Board (EDPB) Guidelines on Data Protection Impact Assessments.
- Automated Decision-making – How should the CPPA handle access and opt-out rights for businesses using automated decision-making?
- The approach of existing laws, frameworks or best practices and their weaknesses is of interest to the CPPA. The CPPA is also looking for details on the prevalence of algorithmic discrimination and how access and opt-out rights may address it.
Companies that have been on the sidelines observing the CPRA regulatory process before taking action now have a final blueprint for what is required of them. Compounding the urgency, the final regulations arrive on the heels of the California Attorney General’s (AG) publishing of enforcement examples from mobile app companies over compliance with provisions of the CCPA. Meanwhile, the CPPA’s administrative enforcement powers take effect July 1, 2023. This comment period presents a great opportunity to help shape key lingering regulatory issues for California’s flagship privacy agency.
Comments are due by March 27, 2023, at 5:00 p.m. ET.
Previous Entries
Data Dive
November 19, 2024
The European Union’s AI Office published the inaugural General-Purpose AI Code of Practice on November 14, 2024. The Code is intended to assist providers of AI models in their preparations for compliance with the forthcoming EU AI Act, to be enforced from August 2, 2025. The Code is designed to be both forward-thinking and globally applicable, addressing the areas of transparency, risk evaluation, technical safeguards and governance. While adherence to the Code is not mandatory, it is anticipated to serve as a means of demonstrating compliance with the obligations under the EU AI Act. Following a consultation period that garnered approximately 430 responses, the AI Office will be empowered to apply these rules, with penalties for nonconformity potentially reaching 3% of worldwide turnover or €15 million. Three additional iterations of the Code are anticipated to be produced within the coming five months.
Data Dive
November 15, 2024
On October 29, 2024, the DOJ issued a proposed rule prohibiting and restricting certain transactions that could allow persons from countries of concern, such as China, access to bulk sensitive personal data of U.S. citizens or to U.S. government-related data (regardless of volume).
Data Dive
October 17, 2024
During the course of any lending transaction, lenders will conduct a due diligence review of the borrower, including reviewing any relevant “know-your-customer” information.
Data Dive
September 17, 2024
Following the publication of the European Union’s Artificial Intelligence Act (AI Act or Act) on 12 July 2024, there are now a series of steps that various EU bodies need to take towards implementation. One of the first key steps is in relation to the establishment of codes of practice to “contribute to the proper application” of the AI Act.
Data Dive
August 6, 2024
On July 30, 2024, the Senate passed the Kids Online Safety and Privacy Act (S. 2073) via an overwhelmingly bipartisan vote of 91-3 shortly before departing for the August recess.
Data Dive
July 18, 2024
On 12 July 2024, the European Union Artificial Intelligence Act (AI Act or Act) was published in the Official Journal of the European Union (EU), marking the final step in the AI Act’s legislative journey. Its publication triggers the timeline for the entry into force of the myriad obligations under the AI Act, along with the deadlines we set out below. The requirement to ensure a sufficient level of AI literacy of staff dealing with the operation and use of AI systems will, for example, apply to all providers and deployers on 2 February 2025.
Data Dive
July 18, 2024
On June 18, 2024, the United States Securities and Exchange Commission (SEC) announced a settlement with R.R. Donnelley & Sons Company (RRD) for alleged internal control and disclosure failures following a ransomware attack in 2021. Without admitting or denying the SEC’s findings, the business communications and marketing services provider agreed to pay a civil penalty of over $2.1 million to settle charges alleging violations of Section 13(b)(2)(B) of the Securities Exchange Act of 1934 (Exchange Act) and Exchange Act Rule 13a-15(a).1
Data Dive
June 11, 2024
In May, the National Institute of Standards and Technology (NIST) issued updated recommendations for security controls for controlled unclassified information (CUI) that is processed, stored or transmitted by nonfederal organizations using nonfederal systems, (NIST Special Publication 800-171 (SP 800-171), Revision 3). These security requirements are “intended for use by federal agencies in contractual vehicles or other agreements that are established between those agencies and nonfederal organizations.”1 While these new controls are only applicable to nonfederal entities that agree to comply with the new issuance, Revision 3 signals the next phase of expected security for government contractors.
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