Cyber Report: A New Year with New Laws

1/6/2020 www.icontact-archive.com/archive?c=38280&f=3120&s=65023&m=6572710&t=e1d3164c5ccd35931ae5354a69917c6bbe33324dec79ffb8…
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A NEW YEAR
WITH NEW LAWS
Below is special New Year's Cyber Report
New Privacy Laws in
California and Nevada
California's landmark Consumer Privacy Act (CaCPA) went into effect on January 1,
2020 BUT (except for its data breach provisions) it cannot be enforced until July 1,
2020. The law is still somewhat in flux as the California Attorney General's regulations
implementing CaCPA have still not yet been finalized.
The threshold question is does CaCPA apply to your business. The law applies to
businesses
having gross revenues in excess of $25 million; or

that purchases, receives, sells or shares the personal information of 50,000 or
more “consumer, households or devices": or
derives at least half of its annual income from selling personal information.
The Attorney General has been asked to clarify if these thresholds are worldwide or
only in California.
If the law applies to you, please contact us and we can assist you with your compliance
efforts. If the law does not apply to do you, it may apply to businesses you work with
who may seek changes in contractual provisions as part of their compliance efforts.
Nevada also has updated its privacy law by requiring websites that collect information
from consumers in Nevada and sell or license that information to third parties for resale
to establish a mechanism by which consumers can opt-out of such selling of their
information.
Both the California and Nevada laws are enforced by the state attorney general and
neither have a private right of action. See blog posts for more information on
California's and Nevada's privacy law.
The new year is certain to see additional legislative efforts to address online privacy
both at the state and federal level. In addition, Alastair Mactaggart, the billionaire
behind the adoption of CaCPA, is seeking to qualify a ballot measure for the November
2020 election that would toughen CaCPA.
New California Laws
Clarifies Independent
Contractor Standards,
Prohibit Forced
Arbitration
In 2018, the California Supreme Court redefined the test for whether a worker was an
employee or independent contractor by redefining contractors as employees unless the
employer could show the worker was
Free from the control and direction of the hiring entity in connection with the
performance of the work, both under the contract for the performance of the
work and in fact;
Performed work that was outside the usual course of the hiring entity’s business;
and
The person was customarily engaged in an independently established trade,
occupation, or business of the same nature as that involved in the work
performed.
This fall, the California legislature passed AB-5 codifying the Supreme Court's
decision, while also creating a carve-out for a number of occupations including direct
salespeople; licensed professionals in accounting, architecture, engineering,
insurance, investments and law; and physicians, surgeons, dentists, psychologists,
and veterinarians. The carve-out, however, expires in 2023 unless extended by the
legislature.
The new law is vigorously opposed by "gig-economy" companies such as Uber and
Postmates who are challenging the law in court. See blog post for more information.
The legislature also passed AB-51 which prohibits California employers from requiring
an applicant for employment or any employee to agree to mandatory arbitration as a

condition of employment, continued employment, or the receipt of any employment-
related bene t.
New California Law on
Data Brokers
California has followed the lead of Vermont and has passed legislation requiring that
data brokers register with the state Attorney General. The law defines a data broker as
"a business that knowingly collects and sells to third parties the personal information of
a consumer with whom the business does not have a direct relationship." Data brokers
must register by January 31st using the Attorney General's website and registration
information will be public. See blog post for more information.
New Year's Checklist
The New Year is a good time to do some legal housekeeping. This includes
Corporate matters such as ensuring corporate lings are up-to-date and
board and shareholder minutes for the prior year are complete;
Updating company policies to include issues such as a data breach plan,
social media guidelines and employees using their own computer devices;
Ensuring employees have signed con dentiality/proprietary agreements;
Checking whether your website terms and form contracts are current;
Trademark protection for company names, brands and slogans;
Reviewing your insurance coverage (including coverage for cyber risks); and
Training your employs on safe cyber practices (including strong passwords
and not opening suspicious les).
See blog post for more information.
In The Courts FTC Watch

9th Circuit A rms hiQ Data-
Scraping Ruling
In a major David v. Goliath victory, the
9th Circuit Court of Appeal affirmed a
lower court ruling enjoining LinkedIn
from blocking hiQ from scraping data
from its site. The court found that
accessing publicly available data (even
without permission) cannot give rise to a
claim under the Computer Fraud and
Abuse Act.
See blog post for more information.
FTC Cracking Down on Fake
Reviews and Followers,
Updates In uencers
Guideliens
The Federal Trade Commission
continues to crackdown on deceptive
social media tactics such as selling fake
followers and encouraging employees to
write fake reviews.
In the fall, they also released guidelines
for when and how influencers must disclose
sponsorships to their followers. See blog
post for more information.
Cyber Law & Business Report
Returns
After a hiatus, Cyber Law & Business Report returned to the air on WebmasterRadio.fm.
Listen to our year-end show detailing the Heroes & Zeros of the Decade..
ILC News and Milestones
ILC Participates In Justice Department E ort to Combat Online Harassment
In July, Bennet Kelley was one of two private attorneys invited to participate in a two-day
brainstorming session on how to combat online harassment organized by the Department
of Justice's National Institute of Justice.
2020 Marks Major Milestones for ILC Founder
For ILC founder Bennet Kelley, 2020 will mark his 30th year of practicing law and 25th as a
member of the California bar.

About the Internet Law Center
The Internet Law Center is a law firm dedicated to helping businesses navigate the evolving
legal standards for today's digital economy. The firm serves a diverse client base that
includes startups and large companies both online and offline across four continents on
issues ranging from online marketing, e-commerce, privacy, domain names to cyber-
harassment, as well as general business and litigation matters.
The Internet Law Center was founded by Bennet Kelley, who has been named as one of the
Most Influential Lawyers in Digital Media and E-Commerce by the Los Angeles Business
Journal. We also have been named as one of the top internet law feeds to follow on Twitter.
Cyber Report is the award-winning newsletter of the Internet Law Center. Our newsletter is
for informational and promotional purposes only and is not meant to express any legal
opinion or advice. No attorney-client relationship has been or will be formed by any
communication in connection with this newsletter

Cyber Report: A New Year with New Laws

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