Protecting Privacy in the Digital Age
The digital age has brought enormous benefits and has come with its fair share of challenges. One of the most onerous problems of the internet age has been the loss of privacy. It’s an issue that consumers, government agencies, and individual companies are now grappling with. The California Consumer Protection Act was signed into law in 2018 in an effort to protect its residents
The digital age has brought enormous benefits. Those benefits come with their fair share of challenges as well. One of the most onerous problems of the internet age has been the loss of privacy. This is also an issue that consumers, government agencies, and individual companies are now grappling with. The California Consumer Protection Act (CCPA) was signed into law to protect it’s residents from nefarious actors.
The Case Against Sephora
There is no better example of the intersection of government, capitalism, and privacy than the recent case against Sephora. Sephora is a beauty supply retailer recognized throughout the country. Their settlement marks the first in what promises to be a long line of similar actions brought under the auspices of the California Consumer Protection Act.
Now in its second year, the CCPA provides consumers in California with a host of important benefits. For example, it requires companies to process opt-out requests, something beauty giant Sephora failed to do. In announcing the settlement, California Attorney General Rob Bonita resolved the allegations that Sephora violated the CCPA. This settlement represents the first time a privacy law of this kind has been successfully enforced. A huge step forward in the quest for online privacy in the internet age.
Also, it should be noted that the state of California did not target Sephora in its enforcement action. Instead, the state used the rules embedded in the CCPA to conduct a sweep of online retailers doing business in the state.
During the sweeping enforcement action, the state discovered that Sephora did not conduct the required disclosures under the CCPA. Specifically, the retail giant failed to disclose the company was selling consumers’ personal information. The suit also alleged that Sephora failed to process requests to opt-out of the sale of personal information, another violation of the CCPA.
Protecting Consumer Privacy
The California Consumer Protection Act does give companies a chance to right the digital privacy wrongs they have committed. This is something Sephora failed to do. Under the auspices of the CCPA businesses have a full 30-day period to cure any violations that are found. This gives them a chance to make things right with their consumers and avoid sanctions.
The recently announced settlement under the CCPA is part of the efforts made by Attorney General Rob Bonta to enforce digital privacy laws. These laws are designed to protect consumers while online shopping, using an app, or email. All while balancing ease of use with important privacy protections.
The entire goal of the California Consumer Protection Act is to protect digital privacy in the internet age. By prohibiting the selling of personal information to third parties, the act aims to extend important protection to residents of California. Some see the legislation as the model for a national effort going forward.
The violations Sephora engaged in were directly in conflict with the rules set down in the CCPA. Specifically, the beauty chain allowed third parties to create detailed profiles on consumers, tracking not only what types of devices they were using but even their precise locations. That amount of data, in the wrong hands, could be a huge problem in terms of privacy. Just the kind of violation the CCPA was designed to prevent.
Sephora Pays the Price
Under the terms of the settlement, Sephora is required to pay $1.2 million in penalties. The company is also required to comply with all terms of the settlement. Including clarifying its online disclosures and privacy policies, providing consumers with a way to opt-out of the sale of personal information, and conforming its future practices to all parts of the CCPA.
The recent action is undoubtedly a win for digital privacy, but only time will tell what happens next. At the very least the example of Sephora should serve as a cautionary tale for businesses engaged in the same kinds of practices, and that alone could be a win for online privacy.