RECENT CHANGE TO STATE PRIVACY LAW WILL IMPACT COMMERCIAL WEBSITES NATIONWIDE

It seems we cannot go a day without big news regarding online security and privacy or the lack thereof. Most recently it was Target and tomorrow who knows. California has always been at the forefront when it comes to protecting consumers and internet privacy. Thus it comes as no surprise that, as of January 1, 2014, every business with an online presence will need to comply with California’s amendment to its Online Privacy Protection Act. This recent amendment has teeth and you must comply if a California resident clicks on your commercial web site either through his computer or mobile phone.

In a nutshell, privacy policies will now be required to include how the website will respond to a web browser’s “do not track” security option and if the web site allows third parties to collect personally identifiable information from users and across third party websites. Failure to comply will cost you $2,500 for each violation. However, before any fine is imposed, the noncomplying business will be given 30 days to correct its privacy disclosures.

What is interesting about this new law is that while it places the onus on businesses to state how their website responds to a customer’s “do not track” option, it does not require the business to honor that request. We are truly operating in one unified economy and it is becoming increasingly important to be aware of the laws of other states as you do business on the global web.
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As a result of this recent amendment, we recommend that you conduct an audit of your online commercial sites and review your privacy policy disclosures. Compliance is relatively simple and future issues can be avoided with the correct disclosures. Please feel free to contact us at Danziger Shapiro, P.C. if you are having difficulty implementing these new requirements or would care to discuss any other aspect of your business operation.

This entry is presented for informational purposes only and is not intended to constitute legal advice.