The need for speedy and more complete access to data is instrumental for healthcare providers, researchers, pharmaceutical, biotech and device companies and public health authorities as they work to quickly identify infection rates, disease trends, outcomes, including antibodies, and opportunities for treatments and vaccines for COVID-19.

A variety of data sharing and collaborations have emerged

Since the California Consumer Privacy Act (CCPA) took effect on January 1, 2020, “copycat” legislation has been introduced at a dizzying pace by state legislatures across the country. Taking their cues from CCPA, at last count 16 states have borrowed language from California’s watershed law regarding consumer notices, data subject rights requests, and definitions of

With the California Consumer Privacy Act of 2018 (CCPA) having taken effect on January 1, 2020, the privacy and data security landscape for insurance carriers, producers and insurtech (collectively, “insurers”) continues to grow more complex. A number of states have also recently passed laws regulating data security in the insurance industry, with the first transition period under a number of these laws set to end in 2020. Given the significant amount of sensitive personal information that insurers collect, process and retain, this trend of increased privacy and data security regulation within the insurance industry is likely to continue. To stay ahead of these new privacy and data security requirements, insurers need to take steps now to navigate the increasingly complex regulatory landscape.

How Does the CCPA Impact Insurers?

On January 1, 2020, California became the first state in the United States to enact comprehensive privacy legislation that governs the collection, use and sale of personal information of California residents (i.e., consumers) and households. Personal information is broadly defined as any information that identifies, relates to, describes is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular individual or household. The CCPA applies to “businesses,” which are for-profit entities that determine the purposes and means of processing consumers’ personal information that do business in California and meet certain applicability thresholds.

Insurers operating in California that meet the CCPA applicability thresholds will be deemed “businesses” subject to a number of obligations under the CCPA, including disclosure obligations and requirements related to consumer privacy rights. While these obligations can be quite onerous, the vast majority of personal information that many personal line insurers collect, process and retain will likely fall under an exemption in the CCPA. The CCPA includes exemptions for:


Continue Reading Privacy and Data Security: 2020 Considerations for the Insurance Industry

The digital health space had a strong start to 2020 with two of the industry’s largest conferences leading the conversation on what’s to come for digital health companies, deals, products and the regulatory outlook in the coming year. The Consumer Electronics Show (CES) launched its Digital Health programming track in Las Vegas this year and

Throughout the past year, the healthcare and life science industries experienced a proliferation of digital health innovation that challenged traditional notions of healthcare delivery and payment, as well as product research, development and commercialization, for long-standing and new stakeholders alike. Lawmakers and regulators made meaningful progress towards modernizing the existing legal framework to both protect

The California Consumer Privacy Act (CCPA) has forced companies across the United States (and even globally) to seriously consider how they handle the personal information they collect from consumers. By its terms, however, the CCPA only protects the privacy interests of California residents; other “copy-cat” privacy laws proposed or enacted in other states similarly would only protect the rights of residents of each state. Given the burden on businesses imposed by the rapid proliferation of privacy and data protection laws, including data breach notification obligations, requirements for data transfer mechanisms imposed by international data protection laws (such as the EU General Data Protection Regulation (GDPR)), and the imposition of a variety of data subject rights, a comprehensive US federal privacy bill appears increasingly overdue.

In the past year, US legislators have proposed a wide variety of data privacy laws—none of which seems to have gained significant traction. In November 2019, two new proposals were released in the Senate: the Consumer Online Privacy Rights Act (COPRA), sponsored by Senate Democrats, and the United States Consumer Data Privacy Act of 2019 (CDPA), proposed by Senate Republicans. Both proposals require covered entities to:


Continue Reading Comprehensive Federal Privacy Law Still Pending

The California Consumer Privacy Act (CCPA) is not yet one month old, but movement has already started on a new California privacy law. In November 2019, the advocacy group Californians for Consumer Privacy, led by Alastair Mactaggart, the architect of CCPA, submitted a proposed California ballot initiative to the Office of the California Attorney General that would build upon the consumer privacy protections and requirements established by CCPA. In December 2019, as required under state law, California Attorney General Xavier Becerra released a title for and summary of the proposed ballot initiative, which will be known as the California Privacy Rights Act (CPRA).

Key Provisions of the CPRA

CPRA seeks to give California consumers additional control over and protection of their personal information in five core ways.


Continue Reading CCPA Has Just Gone Into Effect, But Businesses May Need to Prepare for a New California Privacy Law

On January 1, 2020, the California Consumer Privacy Act of 2018 (CCPA) went into effect. The CCPA applies to a wide range of companies and broadly governs the collection, use and sale of personal information of California residents (i.e., consumers and certain other individuals) and households.

The CCPA provides that consumers may seek statutory damages of between $100 and $750, or actual damages if greater, against a company in the event of a data breach of nonredacted and nonencrypted personal information that results from the company’s failure to implement reasonable security. The amount of the statutory damages depends on factors such as the nature and seriousness of the company’s misconduct, the number of violations, the persistence of the company’s misconduct, the length of time over which the misconduct occurred, and the company’s assets, liabilities and net worth. To defend against these consumer actions, a company must show that it has implemented and maintains reasonable security procedures and practices appropriate to the nature of the personal information it is processing.

This CCPA private right of action promises to shake up the data breach class action landscape in which such actions have generally been settled for small amounts or dismissed due to lack of injury. With the CCPA, companies now face potentially staggering damages in relation to a breach. To provide some context, a data breach affecting the personal information of 1,000 California consumers may result in statutory damages ranging from $100,000 to $750,000, and a data breach affecting the personal information of one million California consumers may result in statutory damages ranging from $100 million to $750 million. These potential statutory damages dwarf almost every previous large data breach settlement in the United States.

To mitigate the risk of this increased exposure, companies need to take key steps to ensure they have implemented reasonable security procedures and practices.

What Is Reasonable Security?


Continue Reading CCPA and ‘Reasonable Security’: A Game Changer

As businesses have scrambled to obtain compliance with the California Consumer Privacy Act (CCPA) in recent months, questions surrounding its constitutionality have arisen. As a broad, sometimes unclear state law that imposes significant obligations on businesses around the country, CCPA may be ripe for legal challenge. The strongest bases for such challenges appear to be: (1) that CCPA violates the “Dormant Commerce Clause”; and (2) that CCPA is impermissibly vague.

Dormant Commerce Clause

The burden that CCPA imposes on out-of-state economic activity may place it in violation of the Dormant Commerce Clause, a legal doctrine created out of the Commerce Clause of the US Constitution. The Commerce Clause allows the US Congress to regulate interstate commerce; from this grant of power, courts have inferred a limitation on the authority of states to regulate interstate commerce, a doctrine coined the Dormant Commerce Clause. On this basis, courts will strike down state laws that explicitly discriminate against out-of-state actors or that regulate activity that occurs entirely outside of the state. In addition, the Dormant Commerce Clause prohibits laws that do not explicitly discriminate against out-of-state economic interests if the effect of a law is to unduly burden interstate commerce. If a state law does unduly burden out-of-state interests, a court will typically balance the burdens imposed on interstate commerce against the benefits the law creates for the state to determine whether or not the law should be upheld.


Continue Reading Though CCPA is Now Live, Questions About Its Constitutionality Linger

Minimal Changes Expected to the Final Regulations

On October 10, 2019, the Attorney General issued his Proposed Text of Regulations, along with a Notice of Proposed Rulemaking Action and Initial Statement of ReasonsAccording to the Attorney General, the regulations will “benefit the welfare of California residents because they will facilitate the implementation of many components of the CCPA” and “provid[e] clear direction to businesses on how to inform consumers of their rights and how to handle their requests.” See Notice of Proposed Rulemaking, page 10.

The deadline to submit public comments on the proposed regulations was December 6, 2019. The Office of the Attorney General (OAG) reported receiving about 1,700 pages of written comments from almost 200 parties. Despite this, the Attorney General stated in a news briefing that he does not expect the final regulations to include significant changes.

The proposed regulations should give everyone a sense of how the Attorney General will interpret the CCPA. The Attorney General is required to issue final regulations and a final Statement of Reasons at some point before July 1, 2020, which is the first day that the Attorney General can enforce the law.

Investing in Enforcement

California has invested in enforcement resources. The Attorney General stated that the CCPA will cost the state about $4.7 million for FY 2019-2020, and $4.5 million for FYI 2020-2021, which reflects the cost of hiring an additional 23 full-time positions and expert consultants to enforce and defend the CCPA. See Notice of Proposed Rulemaking, page 10. Despite this additional funding, the OAG is still an agency with limited resources. Many expect that the OAG will only be able to pursue a limited number of CCPA enforcement actions, particularly if it takes large on and well-funded companies.


Continue Reading Little by Little, Attorney General Becerra Sheds Light on the CCPA in 2020