California Privacy Law Enforcement Risk Grows With New Rules

Less than a week after the landmark California privacy law’s final rules took effect, companies face a greater risk of being targeted for possible violations.

Attorney General Xavier Becerra (D) had only the law’s plain language to guide him when he began enforcement July 1. The rules enactment opens new avenues for investigations, including whether companies have adequate privacy policies and data-sale regimes.

The enactment “certainly paves the way” for more enforcement, said Mark Lyon, privacy partner at Gibson, Dunn & Crutcher LLP and head of the firm’s artificial intelligence practice group. Companies should expect “an increase in the number ...