Not time for more data regulation, civil justice group says; 'Will only exacerbate the substantial compliance and litigation burden'

As California works through the COVID-19 economic crisis, an initiative newly qualified for the November ballot could open up a wave of litigation against businesses still trying to comply with a similar law that took effect this year.

The California Privacy Rights Act (CRPA) – last week approved by the Secretary of State for the Nov. 3 ballot – if passed could only be amended by another ballot initiative, not legislative action.

With businesses still attempting to configure systems in accordance with California Consumer Privacy Act (CCPA), an even stricter mandate could result in more legal action against employers, Kyla Christoffersen Powell, president and CEO of the Civil Justice Association of California (CJAC) said.

“It is too soon to enact an initiative that replaces the expansive California Consumer Privacy Act (CCPA), which only took effect the first of this year, without knowing its full effects,” Powell said.

“In particular, the CPRA initiative hastily cements into statute a vague and broad private right of action, giving plaintiffs’ attorneys the ability to shakedown businesses with lawsuits indefinitely,” she added.

Among the changes the CPRA proposes is creation of a new state agency to manage data privacy issues.

The CJAC sent a letter late last year to the initiative’s chief backer, Alastair Mactaggart of Californians for Consumer Privacy, asking the group to pause pursuing another ballot initiative. In 2018, the group had sought a similar measure; many components later were incorporated into the CCPA law.

“If the CPRA passes, the legislature’s hands will be tied – unable to fix areas of the statute that end up being problematic for consumers and businesses. Californians will need to wait for another ballot initiative to obtain relief,” Powell said.

“The CPRA will only exacerbate the substantial compliance and litigation burden already created by CCPA. California businesses need regulatory certainty – not a moving target – especially during these unprecedented times when many are in survival mode,” she added.