California Privacy Protection Agency Reaches Settlements for Failing to Register with Agency
The Recap
On November 8, 2024, the California Privacy Protection Agency (CPPA) reached settlements with two data brokers, Growbots, Inc. and UpLead LLC, for failing to register and pay the required annual fees under Senate Bill 362, also known as the Delete Act. The data brokers, which failed to register between February and July 2024, will each pay fines—$35,400 for Growbots and $34,400 for UpLead. These settlements mark the first enforcement actions following the CPPA’s investigative sweep of data broker registration compliance in late October 2024.
The Delete Act, signed into law in 2023, mandates that data brokers register with the state and pay an annual fee, funding the California Data Broker Registry and the development of the Data Broker Requests and Opt-Out Platform (DROP). This platform, launching in 2026, will allow Californians to request the deletion of their personal information from all data brokers with a single request.
The Game Plan
Data Broker Compliance Enforcement: The CPPA has begun actively enforcing the Delete Act, holding data brokers accountable for failing to register and pay the required fees, with significant penalties for non-compliance.
Consumer Privacy Protection: The settlements reinforce California’s commitment to safeguarding consumer privacy, ensuring that businesses in the data brokerage industry are transparent and accountable regarding personal data collection and usage.
Upcoming Deletion Mechanism: The DROP platform, expected to launch in 2026, will provide consumers with a centralized way to request the deletion of their data from all registered data brokers, empowering Californians to control their personal information more effectively.
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