[10] And by January 1, 2025 a controller must clearly provide a way for a consumer to opt out of any processing of . CPOMA prohibits controllers from discriminating against consumers for exercising their rights, but clarifies that if a consumer's decision to opt out of processing conflicts with the consumer's existing controller-specific privacy setting or voluntary participation in a controller program (e.g., loyalty or rewards program), the controller may notify the consumer of the conflict and provide a choice to confirm the privacy setting or participation in the program. In contrast, organizations will still be able to cure violations in Utah and Virginia, thus mitigating the compliance risk in those states. This alert was prepared by Cassandra Gaedt-Sheckter, Ryan Bergsieker, Alexander Southwell, Sarah Scharf, Abbey Barrera, Tony Bedel, Courtney Wang, Raquel Sghiatti, and Samantha Abrams-Widdicombe. That said, its important to note that the law includes several organization and data-level exemptions. Any company that does business in Connecticut or whose products and services target Connecticut residents and meets the following requirements must comply with the CTDPA: The CTDPA defines personal data as any information that is linked or reasonably linkable to an identified or identifiable individual, with exclusions for deidentified or publicly available information. not process personal data of a consumer for purposes of targeted advertising, or sell the consumers personal data without the consumers consent, where a controller has actual knowledge and willfully disregards that a consumer is 13-15 years old. The new law, An Act Concerning Personal Data Privacy and Online Monitoring (CTDPA), will go into effect on July 1, 2023 (although a few provisions have an extended timeline). controlled or processed the personal data of not less than 25,000 consumers and derived more than 25% of their gross revenue from the sale of personal data. Important efforts during the response phase include investigating the incident (what happened, how and when it occurred, which systems and data were impacted, potential risks), fixing vulnerabilities to prevent the issue from persisting, issuing notifications based on regulatory requirements, and creating a safe haven for team communications related to all response efforts. On April 28, 2022, the Connecticut legislature passed what we are calling the Connecticut Data Privacy Act (CTDPA) ( SB 6 ). Keypoint: Subject to the Governors approval, Connecticut will become the fifth state to pass a broad consumer privacy act with a bill that is comparable to the Colorado Privacy Act. Connecticut's New Consumer Data Privacy Act May 4, 2022 Connecticut has passed a broad consumer data privacy law, joining the likes of California, Virginia, Colorado, and Utah. Against this backdrop, companies must prioritize proactive incident response, because even with the best cybersecurity in place, incidents are now inevitable. Connecticut Gov. The task force must submit a report of its findings and recommendations to the joint standing committee of the General Assembly by January 1, 2023. Connecticut Privacy Law In May 2022, the Connecticut House of Representatives and Senate approved an Act Concerning Personal Data Privacy and Online Monitoring. by (A) retaining a record of the deletion request and the minimum data necessary for the purpose of ensuring the consumers personal data remains deleted from the controllers records and not using such retained data for any other purpose pursuant to the [the CTDPA], or (B) opting the consumer out of the processing of such personal data for any purpose except for those exempted pursuant to the CTDPA. Employment-related data and business-to-business (B2B) data are also exempt. Chambers and Partners also rated Hunton Andrews Kurth the top privacy and data security practice in itsChambers Global,Chambers USAandChambers UKguides. The Connecticut Act Concerning Personal Data Privacy and Online Monitoring (CTDPA) was signed into law on May 10, 2022 and is scheduled to take effect on July 1, 2023. Ned Lamont has signed an act into law that provides protections for consumer data privacy. Taylor Kay Lively, CIPP/US IAPP Staff Contributor On May 10, 2022, Connecticut became the fifth U.S. state with comprehensive consumer privacy legislation after Gov. CPOMA contains substantially similar obligations and rights as existing U.S. state privacy laws in Colorado and Virginia. The bill nows awaits Governor Lamont's signature. The CTDPA also borrows from the CCPA regulations by allowing controllers to deny an opt-out request if they have a good faith, reasonable and documented belief that such request is fraudulent. To ease the compliance burden, CPOMA specifies that DPAs conducted for the purpose of satisfying another law shall be deemed to satisfy CPOMA, if the DPA is reasonably similar in scope and effect. The CTDPA is the first WPA variant to provide more protections for childrens data, which could set the bar higher on this issue for future state variants. The Act would establish a framework for controlling and processing personal data, and include the now-typical consumer rights to access, correct, delete, and know how businesses are using their personal data. Connecticut's Governor signed the state's comprehensive privacy law into effect on May 10, 2022, adding yet another category of state privacy law. The CTDPA, like the Colorado Privacy Act (CPA), Virginia Consumer Data Protection Act (VCDPA), and Utah Consumer Privacy Act (UCPA) is based on the 2021 Washington Privacy Act (WPA) model. In these cases, organizations must still notify the Connecticut attorney general of any breach, however they only need to notify affected residents of the state in accordance with Connecticut law if the breach triggers the need to provide identity theft protection services. Melissa J. Krasnow Cyber and Privacy Risk and Insurance June 2022 2021 was a busy year for state legislatures, with both Virginia and Colorado enacting new consumer . The CTDPA aligns with the CPRA in not requiring the authentication of opt-out requests. The Bottom Line. Greater safeguards to personal data are the focus of legislation that has now become law in Connecticut, Gov. It seems that JavaScript is not working in your browser. In particular, SB 6 would cover entities that collect data on more than 65,000 consumers or those making 25% of their revenue from selling the data on more than 25,000 consumers. In comparison, the CPRA provides that a business shall not sell or share the personal information of consumers if the business has actual knowledge that the consumer is less than 16 years of age, unless the consumer, in the case of consumers at least 13 years of age and less than 16 years of age, or the consumers parent or guardian, in the case of consumers who are less than 13 years of age, has affirmatively authorized the sale or sharing of the consumers personal information. Getting proactive about incident response requires keeping updated as regulations evolve and new regulations come about (both of which are happening more often), developing ready-to-go response plans, assigning responsibilities among team members, preparing team members with simulations, and revisiting all of those initiatives on an ongoing basis to ensure readiness at all times. CPOMA requires controllers to conduct data protection assessments (DPAs), using a risk-of-harm analysis following the example of the VCDPA, ColoPA, and the. 2016 CT.gov | Connecticut's Official State Website, regular Connecticut will become the fifth state to enact comprehensive consumer privacy legislation if the bill becomes law, joining California, Virginia, Colorado, and Utah. Some of what makes Virginia and Utahs laws so business-friendly include: As cybersecurity incidents continue to increase in frequency and intensity, we can expect even more laws like the new CTDPA to crop up. The Section also advocates on behalf of Connecticut's energy and utility ratepayers in state and federal fora. With the passage of the CPDPA, Connecticut becomes the fifth state to pass consumer privacy legislation and the second state in 2022. Therefore, for organizations subject to all of the laws, the CTDPA could be viewed as moving the bar on state privacy laws slightly higher. On May 10, 2022, Connecticut Governor Ned Lamont signed An Act Concerning Personal Data Privacy and Online Monitoring, after the law was previously passed by the . Connecticut is now the fifth state to enact a consumer privacy law. An older version of the law allowed for 90 days and enabled organizations to skip notifying individuals if an investigation revealed low likelihood of harm; however, the latest version of the law changes this and requires a notification in the shorter timeframe regardless of any investigative outcomes. The WPA never became law, but it has strongly influenced the direction of state privacy law. Husch Blackwells Data Privacy and Cybersecurity Legal Resource. The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network. CPOMA requires controllers to conduct DPAs for processing activities that present a risk of harm to a consumer.7This DPA obligation closely follows that of the VCDPA and ColoPA, including the obligation to produce assessments to the state attorney general. The CTDPA empowers Connecticut consumers with five specific rights over their personal data: Right to access Consumers are provided with the right to "confirm whether or not a controller is processing the consumer's personal data and access such personal data." However, this right is subject to "trade secret" exemption. Like Colorado and Virginia, Connecticut residents will have the right to opt out of sales, targeted advertising, and profiling. Although Governor Lamont is generally expected to sign the bill into law, he has 15 days to either sign the CDPA, allow it to become law upon expiration of the 15 days, or veto it. upon taking effect on july 1, 2023, the law, also known as the connecticut data privacy act ("ctdpa"), will apply to individuals and entities that (1) conduct business in connecticut, or produce products or services that are targeted to connecticut residents; and (2) during the preceding calendar year, either (a) controlled or processed the limit the collection of personal data to what is adequate, relevant and reasonably necessary to the purposes for processing, as disclosed to the consumer; process personal data only for purposes that are reasonably necessary to and compatible with the purposes for processing, as disclosed to the consumer (unless the controller obtains the consumers consent); establish, implement and maintain reasonable administrative, technical and physical data security practices; not process sensitive data concerning a consumer without obtaining the consumers consent; not process personal data in violation of federal and state antidiscrimination laws; provide an effective mechanism for a consumer to revoke consent and cease processing the data within 15 days of receiving a revocation request; and. Like the Virginia, Colorado, and Utah privacy laws, CPOMA's definition of consumer excludes an individual acting in a commercial or employment context. Connecticut now joins California and Colorado in that debate forming the 3Cs of state privacy law. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Consistent with other U.S. state privacy laws, controllers have 45 days to respond to consumer requests and this time period can be extended once by an additional 45 days. Questions about this process, or complaints regarding company compliance with the Insurance Information and Privacy Protection Act, should be directed to the Consumer Affairs Unit of the Insurance Department. In India & Europe, Can New Rules Make Twitter & Other Social Media Responsible? The CPRA makes the recognition of such signals optional (although this could be addressed in rulemaking given the current requirement that businesses recognize the global opt out signal). Connecticut becomes the fifth state to enact comprehensive consumer privacy legislation, expanding consumer rights for Connecticut residents. More so than any previous legislation, Connecticut's law could have a major impact on the way brand marketers connect with digital consumers. Controllers must provide a clear and conspicuous opt-out link on their website to enable consumers to opt out of targeted advertising or the sale of personal data, similar to the CPRA's "Do Not Sell or Share My Personal Information" link (though CPOMA is not prescriptive on the labeling of this link). Therefore, at least as of now, the WPA model (or what some will call the VCDPA model) has emerged as the prevailing model for state consumer data privacy laws although it could be argued that California, with a population of around 39 million, is still the prevailing model as compared to the approximately 21 million people covered by the other states laws. Like the CPA and CPRA, the CTDPA prohibits the use of dark patterns to obtain consent. confirm whether or not a controller is processing the consumers personal data and access such personal data; correct inaccuracies in the consumers personal data; delete personal data provided by, or obtained about, the consumer; obtain a copy of the consumers personal data processed by a controller, in a portable and, to the extent technically feasible, readily usable format; and. The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes. Once the three rights to cure sunset, the three Cs will be positioned to engage in multistate enforcement actions in appropriate circumstances. Beginning January 1, 2025, controllers must also permit consumers to opt out of targeted advertising and sale of personal data via an opt-out preference signal sent with the consumer's consent via a platform, technology, or mechanism, similar to the global opt-out proposed under ColoPA. Childrens data has been a popular topic recently with President Biden even discussing it in his State of the Union address. He also represents. The Commissioner of Energy and Environmental Protection has provided notice to the Attorney General of an abnormal market disruption regarding the wholesale price of motor gasoline or gasohol. They can be reached by calling 1-800-203-3447. What is the Connecticut Privacy Law about? Joseph Duball. The Attorney General may, after the right to cure sunsets, take certain factors into account in determining whether to grant controllers and processors a right to cure. Create Your Privacy Best Practices Now As you can see, the CTDPA ushers in a number of new requirements for your business. Connecticut may have been one of the smallest of the 13 original colonies, but its size belies its impact on the Revolutionary War. The Connecticut CTDPA provides certain rights to Connecticut residents, or "Consumers," which largely track those in the Virginia and Colorado laws with some notable differences. He also represents clients in data security-related litigation. This is particularly true given recent reports that industry lobbying groups intend to push the Utah variant as the standard for state and federal privacy legislation. This article discusses CTDPA application and definitions, consumer rights, privacy notice, and related requirements. This type of attack is challenging to detect and therefore tends to go on for an extended period of time. CPOMA requires controllers to obtain consent before processing sensitive data, consistent with the VCDPA, ColoPA, and the UCPA. During the Senate debate, numerous Senators from both parties remarked about the incredible multi-year effort Senator Maroney put into drafting the CTDPA. As notification timelines continue to shorten and the costs associated with breaches increase, the faster a company can respond, the better the outcomes will be. Case results depend upon a variety of factors unique to each case. This obligation is similar to the CPRA's requirement to obtain consent from consumers less than 16 years of age before selling or "sharing" (for cross-context behavioral advertising purposes) their personal information. Similar to other state privacy laws, compliance with the Children's Online Privacy Protection Act (COPPA) parental consent requirements are deemed compliant with CPOMA's parental consent obligations. Enforcement protocols differ slightly as the law gets fully rolled out. The Connecticut Data Privacy Act (CTDPA), which will go into effect July 1, 2023, is now the fifth and latest comprehensive state consumer privacy law, giving . In addition, the Section educates consumers on how to avoid becoming victims of unfair and deceptive trade practices and, where possible, mediates disputes. The opt-out mechanism must also be as consistent as possible with any other similar mechanisms required by any law. font size, Heath Care Fraud / Whistleblower / Health Care Advocacy. New York Legislature Considers New York Child Data Privacy and Protection Act, UK ICO Issues TikTok Notice of Intent with Possible 27 Million Fine for Childrens Privacy Violations, An Act Concerning Personal Data Privacy and Online Monitoring, FTC Takes Action Against Chegg for Alleged Security Failures that Exposed Data of Employees and 40 Million Consumers, Colorado AG Publishes Draft Colorado Privacy Act Rules, European Commission Publishes Report on Decentralized Finance, NYC DCWP Proposes Rules to Implement New Law Governing Automated Employment Decision Tools, California Consumer Privacy Act Resource Center, The Centre for Information Policy Leadership, Hunton Employment & Labor Perspectives Blog, F.B.I. Now hide your WhatsApp online status for greater privacy. Starting January 1, 2025, the attorney general will have discretion over whether or not to allow for a cure period based on the violating organizations number of violations, size and complexity, and nature and extent of data processing, as well as the likelihood of injury to the public, potential safety risks, and cause of the violation (e.g. [5]Under CPOMA, the privacy notice must include the categories of personal data processed, the purposes for processing, how consumers may exercise their consumer rights and appeal a controllers decision, the categories of personal data shared with third parties, the categories of third parties, and an active email address or other online mechanism to contact the controller. Learn more about the practice. As is becoming increasingly familiar, CPOMA uses a controller/processor framework consistent with all other U.S. states with omnibus consumer privacy laws so far, except California. Senate Calendar Number 222. the act appears to be just a first step in connecticut's expansion of privacy regulation: the act provides for the establishment of a task force, chaired by members of the state general assembly and including representatives from business, academia, consumer advocacy groups, and the office of state attorney general, to study a range of CPOMA's controller obligations are most similar to those imposed under ColoPA, including requirements to adhere to data minimization and purpose limitation requirements, to avoid unnecessary and incompatible secondary uses of data unless the controller obtains the consumer's consent, and to maintain reasonable data security practices. Connecticut set to join the state privacy law ranks. The ability to engage in multistate enforcement actions helps address the criticism that state Attorney General offices do not have sufficient resources to enforce these laws by effectively allowing these states to pool their resources. [7]Such processing activities include targeted advertising, selling personal data, or processing sensitive data. Both the VCDPA andCalifornia Privacy Rights Act(CPRA) (which replaces the currentCalifornia Consumer Privacy Act(CCPA)) will take effect on January 1, 2023, ColoPA will take effect the same day as CPOMA, and theUtah Consumer Privacy Act(UCPA) will take effect on December 31, 2023. Regardless of how business-friendly the CTDPA may be, there are numerous important implications for companies that do business in Connecticut and serve residents in the state, making it important to understand whats required under the new law to get in compliance. On April 28, 2022, the Connecticut General Assembly passed SB 6, " An Act Concerning Personal Data Privacy and Online Monitoring ," which is currently with the governor awaiting signature. The above only scratches the surface of the CTDPA and how it compares with existing state privacy laws. Organizations must ensure a complete response to stay in compliance with regulations like the CTDPA, not to mention that doing so can help bolster customer trust following an incident. That was certainly the case in Connecticut. If signed, the "Act Concerning Personal Data Privacy and Online Monitoring" (Act) will take effect July 1, 2023, the same day as the Colorado Consumer Privacy Act. We discussed dark patterns further here. If the last few years of tracking proposed state privacy legislation have shown us anything, it is that it is incredibly more difficult to pass good legislation than it is to pass bad legislation. However, unlike those two laws, the CTDPA states that controllers must provide an effective mechanism for a consumer to revoke the consumers consent under this section that is at least as easy as the mechanism by which the consumer provided the consumers consent and, upon revocation of such consent, cease to process the data as soon as practicable, but not later than fifteen days after the receipt of such request. Privacy professionals will recognize this concept from the GDPR. The CTDPA will become effective on July 1, 2023. human vs. technical error). However, as discussed, certain concepts and definitions were linked to topics that will be subject to rulemaking in California and Colorado. Further, it could be argued that Connecticut has paved the way for other states to enact more substantive privacy legislation (e.g., requiring controllers to recognize opt-out signals) without incurring the time and cost of rulemaking. Case results do not guarantee or predict a similar result in any future case. Ned Lamont said. We analyzed many of these differences in our ten-part series on the CPRA, CPA, and VCDPA. This new law adopts many themes from previous state laws, but as we are seeing, these laws all have unique aspects and are not identical to one another. If enacted, SB 6 will take effect on July 1, 2023, with certain provisions afforded exceptions. The Connecticut legislature largely drew upon provisions found in existing comprehensive U.S. state privacy laws in California, Virginia, Colorado, and Utah to draft "An Act Concerning . Connecticut became the fifth U.S. state to enact a comprehensive consumer privacy law following California, Virginia, Colorado, and Utah. As a result, privacy compliance in the United States . As with the CPA and VCDPA, the CTDPA requires that controllers obtain parental consent for the collection of personal data from a known child (i.e., children under 13 years of age). The U.S. Supreme Court ruled that a right to privacy was explicit in the Bill of Rights, which prohibits various types of unreasonable government intrusion into personal freedom. Like Colorado and California, the CTDPA also forbids the use of dark patterns to obtain consent. Our almost 600 attorneys provide corporate and individual clients around the world with a full suite of legal services in dozens of industries and practice areas. Keypoint: Subject to the Governor's approval, Connecticut will become the fifth state to pass a broad consumer privacy act with a bill that is. Scope and Applicability. CPOMA does not provide any private right of action; the law is exclusively enforced by the state attorney general. These obligations include: Serious security incidents require a response under Connecticut law, however these requirements are governed by a 2021 law An Act Concerning Data Privacy Breaches rather than the CTDPA itself. With deep subject matter expertise, our attorneys handle data security incidents; regulatory issues regarding federal and state privacy laws, such as HIPAA, FERPA, COPPA, GLBA and CCPA; international privacy law compliance, such as GDPR; and data security litigation matters. The Connecticut proposal shares many similarities with the laws already set to go into effect in 2023 but seems to have the most in common with Virginia's Consumer Data Protection Act. The Connecticut Attorney General will not be required to issue regulations on opt-out signals; however, the CTDPAs requirements for such signals largely (and deliberately) track the CPAs requirements, thus aligning the two. Copyright 2022 Wilson Sonsini Goodrich & Rosati. The Connecticut Act grants consumers a number of rights, including, among others: (1) the right to confirm whether or not a controller is processing the consumer's personal data and the right to access their personal data; (2) the right to correct inaccuracies in the consumer's personal data; (3) the right to delete the personal data; (4) the . Senate Bill 6, known as Public Act No. Husch Blackwells Data Privacy, Security and Breach Response team helps clients navigate complex statutes and regulations surrounding privacy and information security. Hunton Andrews Kurths award-winning Privacy & Information Security Law Blog is among the top-ranked legal blogs. In many respects, the CPA and California Privacy Rights Act (CPRA) can be viewed as complimentary laws especially given that they are based on different models. There are no specific requirements for what should be included in breach notifications to consumers, except in two instances: If the breach involved login credentials, the company must instruct users to promptly change their password and security questions and answers and to take other appropriate steps to protect any other accounts with the same login credentials. The fact that Connecticut joined Colorado in requiring controllers to recognize opt-out signals should not be overlooked. Global Privacy and Cybersecurity Law Updates and Analysis. If the Colorado Attorney Generals office chooses to address this issue in CPA rulemaking it could look to the CTDPAs definition. Beginning on January 1, 2025, the Connecticut attorney general will have discretion on whether to grant a controller or processor an opportunity to cure, and will consider various factors including: 1) the number of violations; 2) the size and complexity of the controller or processor; 3) the nature and extent of the processing; 4) the substantial likelihood of injury to the public; 5) safety of persons or property; and 6) whether the alleged violation was likely caused by human or technical error. The bill will become law if signed by Gov. This is comparable to sunset provisions in California (January 1, 2023) and Colorado (January 1, 2025). For more information or advice concerning your CPOMA compliance efforts, please contactTracy Shapiro,Maneesha Mithal,Eddie Holman,Amanda Irwin, or any member of the firm'sprivacy and cybersecuritypractice. By posing as a legitimate user, hackers can gain access to secure systems to view or acquire data. Organizations can issue a substitute notice if using the first three methods would cost more than $250,000, the breach affected over 500,000 people, or there is insufficient contact information. Virginia is somewhere in between. [2]Consistent with ColoPA and the California privacy laws, CPOMA defines sale of personal data as the exchange of personal data for monetary or other valuable consideration by the controller to a third party. This is in contrast to the VCDPA and UCPAs more narrow definition of sale as merely an exchange of personal data for monetary consideration. CPOMA requires an opt-out mechanism for targeted advertising and the sale. And Then There Were Five: Connecticut Enacts Comprehensive Privacy Law, Special Purpose Acquisition Companies (SPACs), Committee on Foreign Investment in the U.S. (CFIUS), FDA Regulatory, Healthcare, and Consumer Products, Antitrust Compliance and Business Strategy, Third-Party Merger and Non-Merger Antitrust Representation, Foreign Ownership, Control, or Influence (FOCI), An Act Concerning Personal Data Privacy and Online Monitoring.
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