On May 10, 2022, Connecticut Governor Ned Lamont signed "An Act Concerning Personal Data Privacy and Online Monitoring" (SB 6) (CPOMA). Instead, the CTDPA provides that a working group will be convened to study and make recommendations to the Connecticut General Assembly on various topics concerning data privacy. All Rights Reserved. font size, Heath Care Fraud / Whistleblower / Health Care Advocacy. Consent & Preferences Scale your IT risk management programs. We explored these issues further here. opt out of the processing of their personal data for purposes of (1) targeted advertising, (2) the sale of personal data, or (3) profiling in furtherance of solely automated decisions that produce legal or similarly significant effects concerning the consumer. Although the CTDPA will initially provide controllers a right to cure violations, the right to cure will end on December 31, 2024. 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. 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. 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 personal data of at least 100,000 consumers (excluding for the purpose of completing a payment transaction), or (b) controlled or processed the personal data of at least 25,000 consumers and derived more than 25% of their gross revenue from the sale of personal data. Connecticuts attorney general is exclusively responsible for enforcing the CTDPA, as the law offers no private right to action. A business that willfully disregards the consumers age shall be deemed to have had actual knowledge of the consumers age. We discussed these issues further here. No doubt some will argue that the bill should have gone further, while others will argue that it goes too far. Common examples include: In a zero-day attack, hackers exploit a vulnerability in software typically one that is unknown to the developer or is known and hasnt been patched yet to gain access to data, programs, and networks related to that software. In comparison, the CTDPA states that biometric data does not include: (A) a digital or physical photograph, (B) an audio or video recording, or (C) any data generated from a digital or physical photograph, or an audio or video recording, unless such data is generated to identify a specific individual. Thus, the CTDPA makes it clear that if photographs, audio or video recordings are used to generate data that identifies a specific individual, that data will constitute biometric data. 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 We discussed dark patterns further here. Connecticut's Governor signed the state's comprehensive privacy law into effect on May 10, 2022, adding yet another category of state privacy law. Connecticut consumers will have the right to opt out of the processing of their personal data for targeted . As comprehensive privacy legislation comes to more states across the US, its important to consider how these laws are both similar to and different from one another. Connecticut became the fifth U.S. state to enact a comprehensive consumer privacy law following California, Virginia, Colorado, and Utah. Senate Bill 6, known as Public Act No. Connecticut will become the fifth state to enact comprehensive consumer privacy legislation if the bill becomes law, joining California, Virginia, Colorado, and Utah. Additionally, if the information is requested once during a 12-month period, the information provided in response must be free of cost to the consumer. 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. The technical storage or access that is used exclusively for statistical purposes. CPOMA requires an opt-out mechanism for targeted advertising and the sale. Need help covering regulatory requirements during your incident response? Like the CPA and CPRA, the CTDPA prohibits the use of dark patterns to obtain consent. The fact that Connecticut joined Colorado in requiring controllers to recognize opt-out signals should not be overlooked. Despite its unique name, CPOMA does not expressly regulate online monitoring; the sole reference to online monitoring is in the Acts title. However, compromise is (or at least should be) at the heart of the democratic process and the CTDPA is a product of that effort by Senator Maroney. This article discusses CTDPA application and definitions, consumer rights, privacy notice, and related requirements. Although the CTDPA grants these rights, it maintains a similar business-friendly nature to the Virginia and Utah laws which stands in contrast to many other global privacy laws. Public Act No. Additionally, after the CTDPA goes into effect, the attorney general has until February 1, 2024 to submit a report to the Connecticut General Assembly detailing the number violations found, the nature of those violations, the number of violations cured, and any other relevant information. Learn more about the practice. This is a model routinely used by state Attorney General offices in other settings. The governor announced Public Act 22-15 has been signed. This is very similar to other data privacy laws, such as the Utah Consumer Privacy Act (UCPA), though the Connecticut law lowers the gross revenue threshold to 25% instead of 50%. Therefore, for organizations subject to all of the laws, the CTDPA could be viewed as moving the bar on state privacy laws slightly higher. However, as discussed, certain concepts and definitions were linked to topics that will be subject to rulemaking in California and Colorado. The CTDPA identifies seven topics, including algorithmic decision-making, children-related issues, exemptions, and data colocation. 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. This is a hotly contested issue. [6]Under CPOMA, the contract must require a processor to assist a controller in: 1) responding to consumer requests; 2) meeting its security and data breach notification obligations; and 3) providing information to the controller for the purpose of conducting DPAs. 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. The mailing address is P0 Box 816, Hartford CT 06142-0816. We analyzed many of these differences in our ten-part series on the CPRA, CPA, and VCDPA. Pursuant to Conn. Gen. Stat. In May 2022, Connecticut joined the ranks of California, Virginia, Colorado, and Utah by signing into law comprehensive privacy legislation. The Bottom Line. 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 companies doing business in the state less than two years to comply. In the absence of any progress at the federal level, states have taken matters into their own hands with the introduction of proposed consumer privacy legislation geared toward placing greater protections over consumers' sensitive personal data. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you. CPOMA extends certain data-based exemptions, particularly regarding protected health information under HIPAA and health records under other related laws, and personal information regulated by the Fair Credit Reporting Act (FCRA), federal Driver's Privacy Protection Act (DPPA), the family Educational Rights and Privacy Act (FERPA), the federal Farm Credit Act, or personal data processed under the Airline Deregulation Act by an air carrier. Like Colorado and California, the CTDPA also forbids the use of dark patterns to obtain consent. Connecticut's Data Privacy Law By Nicole E. Cloyd on 6.13.2022 The new Connecticut data privacy lawinconveniently titled "An Act Concerning Personal Data Privacy and Online Monitoring" (hereinafter referred to as "CPDPA") was signed into law on Tuesday, May 10, 2022 and will have an effective date of July 1, 2023. Controllers must cease processing data within 15 days of receiving a consumer's consent revocation. 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. [7]Such processing activities include targeted advertising, selling personal data, or processing sensitive data. The CDPA contains a familiar applicability threshold framework and applies to persons that conduct business in Connecticut, or produce products or service targeted to Connecticut residents, that during the preceding calendar year: either (1) controlled or processed the personal data of at least 100,000 Connecticut residents (excluding personal . Its about revisiting response plans regularly to keep them up to date as regulations change or come about and looking for opportunities to improve security measures and response efficiency. To register click here. 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. 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. 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. Over the last year alone, he organized a work group that met numerous times and heard from many different stakeholders. Chambers and Partners also rated Hunton Andrews Kurth the top privacy and data security practice in itsChambers Global,Chambers USAandChambers UKguides. The CTDPA defines sales similar to California and Colorado (i.e., monetary or other valuable consideration) and, therefore, is broader than the definitions used in Virginia and Utah. A security breach is any instance of unauthorized access or acquisition of computerized personal information, which includes a first name or initial and last name along with at least one of the following: Organizations that experience a security breach must notify affected consumers and the state attorney general. Like Colorado and Virginia, Connecticut residents will have the right to opt out of sales, targeted advertising, and profiling. In addition, the CTDPA contains the data broker exemption for the request to delete that recently was added to the VCDPA. Like Colorado and Virginia, the CTDPA requires that controllers obtain consent for the processing of sensitive data. Substantively, CPOMA largely tracks theColorado Privacy Act(ColoPA) andVirginia Consumer Data Protection Act(VCDPA). A Prevailing Model Emerges but With Significant Variants. In addition, the Section educates consumers on how to avoid becoming victims of unfair and deceptive trade practices and, where possible, mediates disputes. As discussed below, there are parts of the Connecticut bill that are arguably stronger than the CPRA and CPA. Global Privacy and Cybersecurity Law Updates and Analysis. 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. 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. Like the Virginia law, the Connecticut proposal does not allow for any rulemaking for the attorney general's office (which has exclusive enforcement authority). [1]Wilson Sonsini derived the CPOMA acronym from the Acts title: Connecticut personal data Privacy and Online Monitoring Act. Initially, from the period of July 1, 2023-December 31, 2024, the attorney general will provide companies with a notice of alleged violations and a 60-day cure period, if the attorney general determines that a cure is possible. Important efforts during the ongoing management phase include introducing a centralized dashboard for reporting on incident response plans and keeping track of changes to regulations and contracts, keeping stakeholders aligned on their responsibilities and changes to plans, and identifying ways to strengthen response efforts by shoring up areas of weakness. Once signed by the Governor, Connecticut will become the fifth stateafter California, Virginia, Colorado and Utahto enact broad consumer data privacy legislation. The only exception to issuing a notification in Connecticut is for organizations already in compliance with HIPAA and/or the HITECH Act. By clicking Accept, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. If the breach involved social security or taxpayer identification numbers, the company must offer identity theft prevention services for at least 24 months. Continuing efforts at the state level to establish a data privacy framework in the US, a fourth state has passed a comprehensive consumer privacy law. That was certainly the case in Connecticut. Like the VCDPA and ColoPA, CPOMA also grants consumers the right to opt out of the processing of their personal data for the purpose of targeted advertising, sale, and profiling decisions that have legal or similarly significant effects. Unlike the UCPA, but similar to the VCDPA and ColoPA, CPOMA grants consumers the right to appeal a denial of a consumer request. 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. Below are high level takeaways about the CTDPA along with context of how the CTDPA compares with other state laws. Reported Out of Legislative Commissioners' Office. 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. CPOMA does not provide any private right of action; the law is exclusively enforced by the state attorney general. This is comparable to sunset provisions in California (January 1, 2023) and Colorado (January 1, 2025). When the Connecticut General Assembly passed the Connecticut Data Privacy Act last week, it became the fifth U.S. state to pass legislation regulating how people's data is collected and shared online. It imposes obligations on both controllers and processors of personal data. On March 23, 2021 in the Senate: 42-234, no seller of motor gasoline or gasohol shall sell, or offer to sell, an energy resource at an unconscionably excessive price between November 3, 2022 and December 3, 2022. CTDPA outlines several obligations for companies that control or process data to help prevent incidents from occurring. 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. The effective date of the Connecticut Data Privacy Act is July 1, 2023. CPOMA does not provide a private right of action; the Connecticut attorney general has exclusive enforcement authority. 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. More so than any previous legislation, Connecticut's law could have a major impact on the way brand marketers connect with digital consumers. It incorporates the CPAs and CPRAs broad definition of sale, which includes exchanges of personal data for monetary or other valuable consideration. Beginning January 1, 2025, the CTDPA also will follow the CPAs example in requiring controllers to recognize opt-out preference signals sent via a universal opt-out mechanism. Colorado remains the lone state consumer privacy law to cover nonprofits. We analyzed this issue at length here. 22-15 and "An Act Concerning Personal Data Privacy and Online Monitoring," was signed into law by Gov. Hunton Andrews Kurths award-winning Privacy & Information Security Law Blog is among the top-ranked legal blogs. Subject to the Governor's approval, Connecticut will join California, Virginia, Colorado, and Utah as states having passed broad consumer privacy bills. Important efforts during the readiness phase include reviewing requirements in relevant regulations and customer and partner contracts, documenting response plans for each regulation, assigning responsibility over key initiatives, and leading tabletop exercises to prepare stakeholders. Similar to existing U.S. state privacy laws, CPOMA grants consumers certain rights regarding their personal data.4Specifically, CPOMA grants consumers rights of confirmation, access, correction, deletion of personal data provided by or obtained about the consumer, and data portability. 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. In addition, lawmakers have also proposed WPA variants in other states, including Indiana, Iowa, Louisiana, Michigan, Tennessee, and Wisconsin. With the passage of the CPDPA, Connecticut becomes the fifth state to pass consumer privacy legislation and the second state in 2022. As we previously discussed, the Utah law is a pro-business variant whereas Colorado and Connecticut are significantly more consumer-oriented. Connecticut now joins California and Colorado in that debate forming the 3Cs of state privacy law. Melissa J. Krasnow Cyber and Privacy Risk and Insurance June 2022 The law will be enforced by the Connecticut Attorney General. The CTDPAs protections apply only to Connecticut residents acting in an individual capacity (i.e., consumers), and do not apply to individuals acting in an employment or commercial (B2B) context. . Against this backdrop, companies must prioritize proactive incident response, because even with the best cybersecurity in place, incidents are now inevitable. For example,. CPOMA expressly excludes agreement obtained via dark patterns from the definition of consent. The Act appears to be just a first step in Connecticut's expansion of privacy regulation: the Act provides for the establishment, by September 1, 2022, 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 . COPPA: Children's Online Privacy Protection Act: Federal law that protects the privacy of children under 13 years of age when online or using a mobile app. Senate Calendar Number 222. Connecticut Privacy Law In May 2022, the Connecticut House of Representatives and Senate approved an Act Concerning Personal Data Privacy and Online Monitoring. Create Your Privacy Best Practices Now As you can see, the CTDPA ushers in a number of new requirements for your business. Options for a substitute notice include email (however organizations can not issue a notification via email if the security breach may have compromised a users email account) or a clear and conspicuous notice online. Ned Lamont said. 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. He routinely counsels clients on responding to data breaches, complying with privacy laws such as GDPR and the California Consumer Privacy Act, and complying with information security statutes. CPOMA contains substantially similar obligations and rights as existing U.S. state privacy laws in Colorado and Virginia. Additionally, controllers may not process personal data for targeted advertising, or sell the consumer's personal data without the consumer's consent, under circumstances where a controller has actual knowledge, and willfully disregards, that the consumer is a minor between 13-15 years of age. A "consumer" is defined as a Connecticut resident, and excludes individuals "acting in a commercial or employment context," also known as a business-to-business exception, which is consistent with other state privacy laws. We will dig into these issues during our webinar on May 5, 2022, at 1:00 p.m. eastern / 10:00 a.m. pacific. It could be argued that it is implied in Colorado and Virginia that consent can be revoked. 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. The bill will become law if signed by Gov. 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. IT Risk & Security Assurance Automate the third-party lifecycle and easily track risk across vendors. Under the CTDPA, consumers will have the right to: Among other obligations, controllers will be required to: The CTDPA shares many similarities with the California Consumer Privacy Act (CPRA), Colorado Privacy Act (CPA), Virginia Consumer Data Protection Act (VCDPA) and Utah Consumer Privacy Act (UCPA).
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