Observed Signal · Sep 30, 2022 · Regulation · Source: CMSWire · Impact: 4/5 · Sentiment: Negative
Sephora's $1.2M CCPA Settlement Signals Broader Data Privacy Enforcement
California reached its first CCPA enforcement settlement with Sephora over alleged failure to disclose sales of personal data and to honor opt-out requests sent via Global Privacy Control. The $1.2 million settlement signals that exchanging consumer data for analytics or advertising services counts as a sale under CCPA. Separately, Oracle faces a class action lawsuit over its Consumer Identity Graph, which privacy advocates say contains detailed profiles of five billion people. Industry observers note that the definition of 'selling' is broadening and that data subject request costs are rising, with DataGrail reporting that 63% of 2021 CCPA privacy requests were opt-outs. As the CPRA expands obligations to cover 'sharing' as well as 'selling' data, businesses must improve data mapping, consent infrastructure, and transparent privacy policies to avoid future fines.
First CCPA enforcement sets a precedent that sharing personal data with ad tech and analytics providers for non-monetary consideration constitutes a 'sale', increasing compliance burdens for advertisers, publishers, and technology vendors.
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Key Takeaways & Evidence Grounding
- Sephora agreed to pay $1.2 million to settle California's first CCPA enforcement action.
- California's attorney general alleged Sephora failed to disclose the sale of personal data and did not process opt-out requests via Global Privacy Control.
- Oracle is facing a class action lawsuit over its Consumer Identity Graph, which allegedly contains data on five billion people.
- DataGrail reported that 63% of CCPA privacy requests in 2021 were requests to opt out of data sales.
- Under CCPA, sharing consumer data with third parties in exchange for advertising or analytics services is considered a sale.
Connected Companies & Entities
5 Entities mapped“Sephora, a French multinational retailer of personal care and beauty products featuring nearly 340 brands along with its own private label, ...”
“Oracle, a Fortune 500 company that focuses on enterprise services and cloud technology, let its guard down last month, and as a result it’s ...”
“Daniel Barber, CEO of DataGrail, told CMSWire, the California AG is taking a stand and saying it’s no longer OK for companies to freely use ...”
“The exchange of data with analytics providers such as Google and Facebook may not be as straightforward and simplistic as previously assumed...”
Ontology Mapping & Concepts
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