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Developments of Note

BY Julian S. Millstein, Edward A. Pisacreta
December 01, 2003

California Governor Signs Online Privacy Protection Act

On Oct. 11, then-Gov. Gray Davis signed California A.B. 68, the Online Privacy Protection Act of 2003 (Online Privacy Act). The Online Privacy Act requires that the collection of personally identifiable information from California residents through a Web site or online service for commercial purposes be done pursuant to a conspicuously posted privacy policy. The privacy policy must identify the categories of personally identifiable information collected about individuals, and must identify the types of third parties with whom the data may be shared. Additionally, if the operator of the site or service maintains a process for individuals to view and request changes to such data, then the policy must provide a description of that process. Finally, the policy must describe the process by which the operator will notify consumers of material changes to such privacy policy.

An operator will be in violation of this law if it fails to post its privacy policy in accordance with the law within 30 days after being notified of noncompliance, or if it fails to comply with its privacy policy, either knowingly and willfully, or negligently and materially.

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