California Consumer Privacy Act of 2018: statute of limitations.
The introduction of AB 1546 aims to provide clearer guidance on the enforcement of the CCPA, potentially making it easier for the Attorney General to take action against businesses that violate consumer privacy rights. It not only holds businesses accountable for their handling of personal data but also aligns the statute of limitations for civil actions with existing regulatory frameworks. This alignment is expected to enhance the protection of consumer privacy in California and reinforce the powers of the California Privacy Protection Agency, which oversees the implementation and enforcement of the CCPA.
Assembly Bill No. 1546, introduced by Assembly Member Gabriel, seeks to amend Section 1798.199.90 of the California Civil Code, specifically concerning the statute of limitations for actions brought by the Attorney General under the California Consumer Privacy Act (CCPA). The CCPA grants consumers the right to take action against businesses that mishandle their personal information. Current law restricts the commencement of administrative actions for violations to five years following the violation, but this bill reinforces that timeframe by specifically outlining that actions must be initiated within five years after the cause of action accrues, thus clarifying the enforcement mechanism for consumer rights.
While the bill is generally seen as a positive step for consumer protection, there may be contention regarding the implications for businesses, especially small enterprises that may find the compliance burden heavier. Some stakeholders argue that tightening the statute of limitations might lead to increased litigation and operational costs. On the other hand, proponents of consumer rights assert that consumers deserve robust protection against violations of their privacy, and having a defined enforcement timeline could deter businesses from negligent data practices.