Enforcement of a new privacy law without final rules now in effect

The new year kicked off enforcement of a new law protecting the privacy of Californians, but what that law will finally be remains to be decided, prompting the state director of California’s largest small-business association to wonder how firmly set the compliance thresholds are that supposedly hold Main Street enterprises out of harm’s way.

“The California Privacy Protection Agency was supposed to have had final rules last July 1, and now, according to one news account, will not have them until later this month or February,” said John Kabateck, California state director for the National Federation of Independent Business. “I still appreciate Alastair Mactaggart’s reaching out to NFIB to assure us his initiative was aimed at only big businesses, but small-business owners have long witnessed how thresholds have a way of sagging to ensnare them eventually.”

Mactaggart was the leading force behind Proposition 24, the California Privacy Rights Act of 2020, and its legislative forerunner, the California Consumer Privacy Act of 2018.

According to the CPPA website, “The agency is currently considering all timely received comments. The Board will consider whether to adopt or further modify the proposed regulations at a future public meeting.”

“Right now, the law applies to businesses with annual revenues over $25 million,” said Kabateck. “The typical NFIB member employs 10 people and reports gross sales of about $500,000 a year, but any comfort we’re able to take from seemingly out of the CPPA’s clutches is not secured by the way this new state agency has conducted itself so far. Small-business owners don’t have the financial resources to have compliance specialists on staff, so they need to know early what possibly awaits them.”

Keep up with the latest on California small-business news at www.nfib.com/california or by following NFIB on Twitter @NFIB_CA or on Facebook @NFIB.CA.

About the National Federation of Independent Business
For nearly 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since its founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.