Legal counsel wondering what to expect when CCPA goes into effect in less than nine months should look to Illinois. Proposed amendments to CCPA by California’s Attorney General Xavier Becerra would expand the regulation, similar to Illinois’ law (the Illinois Biometric Information Privacy Act, or "BIPA"), to include a private right of action if California residents’ rights are violated, regardless of whether or not an actual breach occurs.
A similar cause of action exists under...BIPA. That provision has resulted in a flood of litigation, including putative class actions, seeking to recover statutory damages for plaintiffs who allege their biometric information has been collected and/or disclosed in violation of the statute. - Jackson Lewis
Within just three days, March 29-April 1, seven new lawsuits were filed in Illinois against businesses of all sizes, adding to the two-hundred plus class-actions already in the courts. And unlike Illinois BIPA, which has a narrow focus, the scope of CCPA is quite broad.
"Companies that employ as few as 1,000 people are now facing a minimum of $1,000,000 in liability under these new lawsuits"- Al Saikali, Washington Legal Foundation
The critical commonality between Illinois BIPA and California CCPA is the massive financial incentive these regulations create for the plaintiffs’ bar (see Engineered Liability by U.S. Chamber of Commerce Institute of Legal Reform).
"A private right of action in the context of a data-privacy law appears to benefit plaintiffs' lawyers the most..." - Al Saikali, Washington Legal Foundation
Unlike GDPR where enforcement is very much a bureaucratic function, U.S. State Privacy laws like CCPA, BIPA, and several more to follow, are enforced through old-fashioned U.S.-style litigation. Keep in mind that one in eight U.S. citizens are California residents, meaning even small companies could be facing tens of millions of dollars in statutory damages.
Jordan Lawrence has the suite of services that enables your company to quickly and cost effectively get in position for CCPA. Regardless of what you have done in the past, let us show you why the world’s largest In-house legal bar, the Association of Corporate Counsel (ACC) selected Jordan Lawrence as their exclusive Data Privacy and Cybersecurity Alliance Partner.