The first California Consumer Privacy Act lawsuit has been filed over an alleged failure to adequately protect consumer data. The lawsuit has been filed against Hanna Andersson, a children’s clothing company, and its ecommerce platform provider, Salesforce.com.
The California Consumer Privacy Act took effect on January 1, 2020. Under Civil Code 1798.100 – 1798.199, consumers could start exercising their new rights under CCPA from the compliance date. One of those rights is being able to take legal action against companies for privacy violations, such as the theft of personal data in a data breach.
The California Consumer Privacy Act lawsuit was filed in the U.S. District Court for the Northern District of California on behalf of a victim of a 2019 data breach. The lawsuit alleges negligence and a failure to implement reasonable safeguards to protect consumer data, and that the data breach occurred as a direct result of the alleged negligence. A claim for damages has not been stated, although the right has been reserved to seek damages and relief at a later date.
The breach in question was announced by Hanna Andersson on January 15, 2020. Hackers had gained access to its systems and downloaded malware, which allowed the attackers to steal information such as names, personal information, and payment card data. That information was subsequently listed for sale on the dark web.
The California Consumer Privacy Act allows Californians to file for damages of up to $750 per data breach, so a class action California Consumer Privacy Act lawsuit arising from a sizeable data breach could prove extremely costly for a company. In this case, the data breach affected approximately 10,000 California residents, so damages up to $7,500,000 could potentially be claimed.
Enforcement of CCPA
Enforcement of compliance by the California Attorney General has been delayed and will start 6 months after the publication of the final regulations or July 1, 2020, whichever comes sooner. Since the final regulations have yet to be published, the enforcement date will be July 1, 2020. California Attorney General Xavier Bercerra has already stated that he will make an example of businesses that fail to comply with CCPA.
It should be noted that there is nothing in CCPA that prevents the state attorney general from issuing notices of noncompliance before that date and consumers can already file lawsuits to claim damages. It is therefore essential for all entities covered by CCPA to ensure that they are honoring the new consumer rights and have implemented safeguards to protect consumer data.
How TitanHQ Can Help with CCPA Compliance
TitanHQ offers two powerful security solutions that can help covered entities ensure the data of consumers is protected and data breaches are prevented. These two cybersecurity solutions protect against the two most common attack vectors – Email and the internet.
SpamTitan is a powerful anti-spam, anti-malware, and anti-phishing solution that protects email systems from phishing and spear phishing attacks, known and zero-day malware threats, and email-based ransomware attacks.
WebTitan is a companion solution that blocks the web-based element of phishing attacks, exploit kits, and drive-by malware downloads over the internet, while also controlling the content that employees can access on wired and wireless networks.
TitanHQ can also help covered entities comply with the right to know and right to delete consumer rights afforded by CCPA through ArcTitan. ArcTitan is an email archiving solution that allows organizations to meet state and federal email data retention requirements and quickly find emails containing consumer data. If a California resident exercises their right to know what data is held on them by a company, or requests all of their personal data is deleted, that information can quickly be found in the archive. ArcTitan will also allow you to quickly find email data for eDiscovery in the event of any legal disputes.
For further information on these solutions, to schedule a product demonstration, or to arrange a free trial of the full solutions (with full customer support), give the TitanHQ team a call today.