A Legal Guide to PRIVACY AND DATA SECURITY 2024

Refer to Attorney General Bonta Announces Settlement with Sephora as Part of Ongoing Enforcement of California Consumer Privacy Act. Sephora was sharing personal information of their customers with third-party advertising networks and analytics providers, a common practice for most businesses conducting e-commerce. To what extent does this practice constitute the sale of data and trigger the “do not sell” compliance obligations of the CCPA? We now have a better idea of what the California Attorney General considers the sale of personal data under the CCPA. The California attorney general has taken the position that sharing data with a vendor in exchange for analytics or ad serving is a “sale” because Sephora “gave companies access to consumer personal information in exchange for free or discounted analytics and advertising benefits,” including “the valuable option to serve targeted advertisements to the same shopper on the analytics provider’s advertising network.” According to the California Attorney General “Sephora’s arrangement with these companies constituted a sale of consumer information under the CCPA, and it triggered certain basic obligations, such as telling consumers that they are selling their information and allowing consumers to opt-out of the sale of their information. Sephora did neither”. The California Attorney General also announced that it had sent notices to a number of businesses “alleging non-compliance relating to their failure to process consumer opt-out requests made via user-enabled global privacy controls, like the GPC”. Key takeaways from the Sephora settlement: 1. Do You Sell Personal Data? The California AG has identified the “do not sell my data“ obligations of the CCPA as a focus for enforcement. If you “sell” data include a “do not sell my personal information” link on the site. The case against Sephora was based on their alleged sale of personal information, as that term is broadly defined in the CCPA. If Sephora sold personal information and failed to provide a 114

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