Why Should My [New York/New Jersey/East of the Rocky Mountains] Financial Institution Worry About the California Consumer Privacy Act?
You may have read about the California Consumer Privacy Act, effective next year. It is California’s effort to implement the “Right to be Forgotten” and to force companies to delete data at a consumer’s request. A lot of commentators claim that the law applies to businesses outside California. You can probably, to quote Aaron Rogers, the actor in the State Farm commercials who occasionally plays quarterback for the Green Bay Packers, RELAX. The law only applies to companies that do business in California, have revenues of $25 million or more, AND collect data on 50,000 California residents. If you do not satisfy all those requirements, the law does not apply to you.
Today’s Takeaway? This is one thing you probably don’t have to worry about unless you have a very active business in California. However, there has been discussion about adopting a similar federal law to preempt state laws so large companies can follow one national standard instead of 50 different state laws, so stay tuned for future developments.