California Court of Appeals Strikes Down Delays in Enforcement of CPPA Regulations

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On February 9, the Third Appellate District of California vacated a trial court’s ruling that enforcement of the California Privacy Protection Agency’s (“CPPA”) rules could not begin until one year after the rules’ expiration date. Is. As we previously reported, the Superior Court order blocked the CPPA from implementing the rules finalized on March 29, 2023, until March 29, 2024. However, the appellate court held that “because there is no ‘clear and strong language’ mandating it, the CPPA is prohibited from enforcing the California Consumer Privacy Act (“CCPA”) unless the CPPA does not approve the final rules; the trial court erred in concluding otherwise.”

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The appellate court acknowledged that the CPPA failed to meet its statutory deadlines (in other words, July 1, 2022) for adoption of the final regulations, and the statute provided an enforcement date of one year after this deadline, but still concluded that the CCPA was subject to a “one-year delay” between the CPPA’s approval of the final regulation. and the CPPA’s authority to enforce that regulation. The appellate court said that “there are other tools” to protect relevant interests, such as the CPPA regulation, which, when deciding whether to proceed with an investigation, “takes into account all the relevant facts, including the time between taking effect” The date of statutory or regulatory requirements, any potential or alleged violations of those requirements, and good faith efforts to comply with those requirements.

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In a statement released by the CPPA shortly after the order, the CPPA’s Deputy Director of Enforcement said that “[t]his decision should serve as an important reminder to the regulated community: now is a good time to review your privacy practices.” “To ensure full compliance with all our rules.”

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