The California legislature is considering amendments to its consumer privacy laws that could significantly increase the cost of doing business and the risk of unjustified monetary penalties. If your business is based in California or has any sorts of facilities in CA, please contact your state legislative representatives to urge them to oppose this bill, which would drive up business risk and expense with little actual benefit to CA consumers. Here are more details:
Introduced in the State Assembly this month, CA 2021 is styled as a bill to protect whistleblowers who come forward to report mishandling of consumer data and violations of the California Consumer Privacy Act (CCPA), but appears to be a giveaway to the California Plaintiffs’ bar. If enacted, the bill would provide that any “whistleblower” who reports a violation of the CCPA to the California Privacy Protection Agency (CPPA) would be entitled to a bounty of not less than 15 percent, and not more than 33 percent of the fines imposed by the CPPA through its administrative enforcement actions or settlements.
To put this in perspective, 33% of the CCPA’s recent $2.75M settlement with the Walt Disney Company would be more than $900,000. In addition to providing general financial incentives for whistleblowers, the proposed amendments would authorize the CPPA to impose additional fines – in excess of the administrative fines currently authorized under the CCPA – in an undefined amount “to cover the reasonable attorney’s fees of the whistleblower.”
The bill would also provide employment protections for whistleblowers who come forward to report alleged wrongdoing by their employers. The financial provisions contained in the bill, however, make plain that the primary purpose of the proposed amendments is to establish a new revenue stream for a plaintiffs’ bar that, through the proliferation of nuisance lawsuits brought under the California Invasion of Privacy Act, has already demonstrated a willingness to file privacy-based complaints with questionable bases.
The ACMA is happy to provide any further guidance on this – simply click here to email us any questions.

