The Act cleared the State Senate on February 25 and was unanimously approved by the House of Representatives on March 2. Importantly for small businesses, the UCPA does not apply to controllers that generate less than $25,000,000 in annual revenue, regardless of the amount of consumer personal data processed. With many other state laws in the pipeline and a shifting definition of personal data that brings more private data within the scope of a privacy law, data privacy compliance continues to be an evolving challenge. If the director of the Division of Consumer Protection has reasonable cause to believe that substantial evidence exists that the business is in violation of the law, the director will then refer the matter to the Attorney General. Do this now, well before lack of compliance becomes an issue. Goodwins Data, Privacy + Cybersecurity Insights blog features thought leadership tackling business and public policy challenges that arise from ever-changing, intricate and complicated web of global privacy and cybersecurity laws, regulations, guidance, and self-regulatory frameworks. The UCPA is both similar to and different from the consumer privacy laws of California, Virginia and Colorado. While Utah privacy law closely tracks that of Virginia and other state privacy laws in general, Utah takes a unique approach with respect to consumer UCPA violation claims. If a company uses a third party to help them process consumer data, it must enter into a contract with that third party. The Utah Division of Consumer Protection may investigate consumer complaints under the UCPA and refer complaints to the attorney general. But businesses that tailor their privacy compliance to each individual state will need to pay close attention to the specific provisions set forth in the UCPA. 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The UCPA applies only to controllers that: (a) conduct business in Utah or offers a product or service that is targeted to consumers who are residents of Utah; (b) has annual revenue of $25,000,000 or more; and (c) satisfies one or more of the following thresholds: Like the other state privacy frameworks, the UCPA does not apply to non-profit entities, institutions of higher education or government entities, or toentitiesthat process personal data subject to certain federal privacy laws, including the Gramm-Leach-Bliley Act (GLBA); the Health Insurance Portability and Accountability Act of 1996 (HIPAA); the Fair Credit Reporting Act (FCRA); or the Family Educational Rights and Privacy Act (FERPA). The law defines personal data very broadly and essentially means any information that could reasonably be expected to identify a person. Utah recently passed the Utah Consumer Privacy Act, which will go into effect December 31, 2023. Utah Poised to Enact Consumer Privacy Law Friday, March 4, 2022 On March 3, 2022, the Utah House of Representatives unanimously passed a consumer privacy bill which the Utah Senate. Similar to other US state laws, the UCPA provides certain rights to the consumer as outlined below: While responding to consumer requests, the law expects the controller to authenticate the identity of the consumer using commercially reasonable efforts.7The law allows a controller to request additional information to authenticate a consumer request. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor. The UCPA, which will become effective December 31, 2023, largely mirrors the Virginia Consumer Data Privacy Act ("VCDPA"), explained in more detail here, or Europe's General Data Protection Regulation ("GDPR"). Any legal analysis, legislative updates or other content and links should not be construed as legal or professional advice or a substitute for such advice. The companys total annual revenue is at least $25,000,000; The company either (1) collects or processes information for at least 100,000 consumers. Unconstitutional Self-Actualizing, Perpetual Funding Mechanism May California Offshore Wind Lease Sale Announced by Bureau of Ocean Colorado AG Publishes Draft Colorado Privacy Act Rules, Significant Developments for the US Offshore Wind Energy Industry. The Utah Consumer. 3/8/2022. He is well versed in consumer privacy actions, as well as in compliance issues with the Foreign Intelligence Surveillance Act (FISA) and other federal surveillance law. 11 Consumer Privacy Act, State of Utah. Legislative Research and General Counsel / Enrolling. The Utah Consumer Privacy Act (UCPA) was signed into law on March 24, 2022 and is scheduled to take effect on December 31, 2023. Personal information does not include deidentified, aggregated or publicly available information. The SEC's Immensely Impracticable Impracticability Exception. The Act, which is scheduled to take effect on December 31, 2023, includes many of the same rights, obligations and exceptions that have become common in other consumer privacy laws and proposals: The Act provides consumers with the now well-known rights of notice, access, portability and deletion. The UCPA also requires a processor to ensure that each person processing personal data on its behalf is subject to a duty of confidentiality, and to only engage a subcontractor pursuant to a written contract that requires the subcontractor to meet the same obligations as the processor. National Law Review, Volume XII, Number 63, Public Services, Infrastructure, Transportation. Spencer Cox signed the Utah Consumer Privacy Act (UCPA). On March 24, Gov. The Evolving New York City Workplace: Two Important Updates Effective 5 Questions with Mike DeCesaris: AI/ML Efficiency Driven by GPUs. The scope of the UCPA is narrower than that of the VCDPA, California Consumer Privacy Act (and as amended, the California Privacy Rights Act) (collectively, the CCPA/CPRA), and Colorado Privacy Act (CPA). the ucpa applies to controllers or processors that (1) do business in utah or produce a product or service targeted to consumers who are utah residents, (2) have annual revenue of $25 million. The UCPA will take effect on December 31, 2023. Oklahoma Telephone Solicitation Act goes into effect Chinas National Intellectual Property Administration Releases New Ninth Circuit Holds Time Spent Logging On and Off Computers May Be Employment Tip of the Month November 2022, Sizeable Increases to 2023 Plan Limits Due to Inflation. The new law provides new rights for consumers and new obligations for companies who collect or process consumer data. Heads Up: Defendants Deserve Fair Notice of Preliminary Injunctions, New Law Changes Non-Compete Landscape for D.C. The categories of personal data processed; The purposes for which the personal data is processed; The categories of personal data shared with third parties (if any); and. CPRA. 2 Consumer Privacy Act, State of Utah. Serial Relator Brings Multiple Lawsuits Alleging False Claims Act FTC Takes Action Against Chegg for Alleged Security Failures that Hunton Andrews Kurths Privacy and Cybersecurity, Takeaways from GAOs FY 2022 Bid Protest Report, Long Time Coming: SEC Adopts Final Dodd-Frank Clawback Rules. Treasury Issues Final Rule on Beneficial Ownership Reporting FDA Proposes Color Certification Fee Increase. The controller is the one who determines the purpose and means of processing, while the processor is the one who processes the personal data on behalf of the controller. The Alice Test for Patent Ineligibility in Practice, Part Two: The Australian Government Commits to Protecting First Nations Visual Art. A LIGHT TOUCH APPROACH TO DATA PROCESSING AGREEMENTS. EPA Provides Report to Congress on Its Capacity to Implement Certain SEC Adopts Amendments Requiring Electronic Filing of Forms 144. On March 3, 2022, the Utah House of Representatives unanimously passed a consumer privacy bill which the Utah Senate passed earlier this year. : MyPillow and Mike Lindell Facing MASSIVE EXPOSURE Alabama Medical Cannabis Application Window Is Open: [Insert Michael Ankura CTIX FLASH Update - November 1, 2022, Ankura Cyber Threat Investigations and Expert Services, Brazil Limits New Privacy Laws Obligations on Small Entities. Prior to initiating any action against a controller or a processor, the attorney general will issue a notice of violation explaining the provisions that are violated. The UCPA also includes broad entity-based exemptions for entities and businesses covered by the Fair Credit Reporting Act and the Gramm-Leach-Bliley Act, as well as non-profit entities, higher education institutions, tribes, and government bodies. Processors must follow controllers' instructions when processing personal data, and they must engage subprocessors via a written agreement that flows down the processor's obligations. UCPA will only apply to businesses who: (1) conduct business in Utah or provide a product or service directed at Utah residents; (2) have an annual gross revenue of over $25 million; and, Gretchen Scott DOJ Prosecutes Attempted Collusion among Business Competitors for NFT Insider Trading Charge Doesnt Require the NFT To Be a Security, The Role of Economic Analysis in UK Shareholder Actions, CFTC Whistleblower Programs Annual Report Details Record Year. Parting Advice: Judge Drain Rules That Dividends Paid From the Proceeds of Safe- Value-Based Care Conference 2022: Hot Topics and Trends, 2022 West Coast Forum - Beverly Hills, CA, Mitigating Title IX Liability in Athletic Fundraising Policies and Procedures, Trade Secrets, Restrictive Covenants, and No-Poach Agreements in Health Care. A Certified Information Privacy Professional/Europe, he is experienced in helping clients navigate US and international data protection law, including the GDPR. Importantly, a company may not penalize a consumer for exercising a right by denying service, charging different prices, or providing a different level or quality of service. The California Privacy Rights Act Could now Apply to Your Business. Virginia, with its Virginia Consumer Data Protection Act, and Colorado, with its Colorado Consumer Protection Act, adopted a very similar approach. Her practice area also focuses on technology, data privacy and cybersecurity, as well as transactional and regulatory matters for clients across industries. Spencer J. Cox on March 24, 2022, Utah has become the fourth state to enact a comprehensive law addressing consumer data privacy, joining California, Colorado and Virginia. Spencer J. Cox on March 24, 2022, Utah has become the fourth state to enact a comprehensive law addressing consumer data privacy, joining California, Colorado and Virginia. On March 24, 2022, the Utah Consumer Privacy Act (UCPA) was signed into law by Governor Spencer Cox, becoming the latest addition to comprehensive state privacy laws in the US. As of March 4, the Utah Consumer Privacy Act ( SB 227) cleared both houses of the Utah legislature. What Utah's new consumer privacy law means for your business By Danica P. Baird April 20, 2022 3.43k Utah recently passed the Utah Consumer Privacy Act, which will go into effect December 31, 2023. Although many of the protections are similar to the other states' laws, Utah's new bill, if enacted, will potentially have a narrower scope. Ensure you have appropriate agreements in place with those who process information on your behalf. 2022 NASCIO State CIO Survey Report - The People Imperative, Looking to the Post-Pandemic Future and Thinking about Long-Term Impacts to the State Technology Landscape, Utah Joins Expanding List of States With Privacy Laws What You Need to Know, 2022 State and Future of the Power Industry, Future-Proofed: Protecting Infrastructure in Uncertain Times, Navigating the Bipartisan Infrastructure Law, Process Automation - Untapped Opportunity for Government Agencies, 2021 Environmental, Social, and Governance Report, Entities that process the personal data of 100,000 or more consumers during a calendar year or derives over 50% of the entitys gross revenue from the sale of personal data, A controller or processor who conducts business in the state, Entities with annual revenue of $25,000,000 or more.. These laws broadly follow the model established in the EU's General Data Protection Regulation (GDPR), which was passed in 2016 and came into force in 2018. 16 Consumer Privacy Act, State of Utah. Companies must publicly post a privacy notice that contains the following information: Additionally, if the company sells personal data or engages in targeted advertising, it must clearly inform the consumer that they have a right to opt out of either use of their information. CPW has been tracking the UCPA's progress throughout this legislative session. The UCPAdoes notprovide consumers with a private right of action not even a limited right, as there is under the CCPA/CPRA. However, the law also provides for the company to ask for one 45-day extension, so long as they meet certain conditions and comply with certain requirements. (v); 1798.140. Like other laws, the Utah Consumer Privacy Act allows consumers to opt-out of the use of their information for certain purposes, including targeted advertising and the sale of personal information. The UCPA's obligation to maintain appropriate data security practices to protect the personal data and reduce risks of harm to the consumer offers an interesting, and important, complement to . Cost of Living Crisis Causes Rise in Financial Crime. With the recent signing of the Utah Consumer Privacy Act ( UCPA) by Gov. Governor Cox has 20 days to sign the bill or take no action (after which it will become law), or veto the bill. Utah is close to becoming the fourth state to have a comprehensive privacy law. A Question OpenSky Should ATA Calls for Stakeholder Letter on Telemedicine Controlled Equitable Mootness No Bar to Slicing & Dicing Exculpation EPA Region 1 Expands NPDES Stormwater Permitting Requirement to Sites Unpacking Averages: Finding Medical Device Predicates Without Using 2023 Employee Benefit Plan Limits Announced by IRS. It contains similar definitions for a "controller" and "processor" as those found in the Colorado and Virginia laws. The definition of consumers does not include those who are acting in an employment or commercial context. Cal. Consumer. The categories of third parties with whom the controller shares personal data (if any). Attorney Advertising. Like the VCDPA and CPA, the UCPA requires controllers to provide an opt out for targeted advertising and the sale of personal data. The UCPA is largely based on the Virginia Consumer Data Protection Act (" VCDPA "). Unlike Virginia and Colorado, controllers must only provide notice and an opportunity to opt out prior to processing consumer's sensitive data (or comply with the Children's Online Privacy Protection Act (COPPA) for the sensitive data of children under 13) as opposed to obtaining opt-in consent to collect and process such data. Foreclosure Warning: Property Possessed but Not Owned by a Debtor May Disclosure: Green Hushing Climate Targets. A company that wants to collect sensitive data must provide consumers with a clear notice that they can opt out of sharing this type of information. Third-Party Risk Operationalize your values by streamlining ethics and compliance management. The UCPA applies to any controller or processor who: Conducts business in the state. The controller needs to fulfill the consumer request free of charge within forty-five (45) days with an option to extend it for another forty-five (45) days, depending on the complexity of the request or the volume of requests.8However, for any subsequent consumer request within a 12-month period, the controller may charge a fee. The company may also charge a reasonable fee to process the information in certain situations, such as if it believes the request is unfounded or excessive, it is a second request made within a 12-month period, or the company believes the primary purpose is for something other than exercising their consumer right. Utah became the fourth US state after California, Virginia, and Colorado to enact a comprehensive privacy law. The UCPA contains significant substantive exemptions that mirror those under Virginia and Colorado law, including that nothing in the law will restrict, among other things, a controller's or processor's ability to comply with law or legal process; provide a product or service requested by the consumer; perform a contract with the consumer; repair technical errors or protect security; conduct internal analytics or other research to develop, improve, or repair a product, service or technology; or perform an internal operation that is reasonably aligned with consumer expectations or compatible with processing to provide a product or service. Main Menu. The UCPA is the least onerous of the four state data privacy laws passed to date. Controller A (EEA) Processor Z (EEA) Employee of Processor Z (Non PTO Extends Deadline for Comments on Initiatives to Ensure Patent With Election Day Around the Corner, Employers Need to Remember You Puerto Rico Publishes Model Protocol for Expanded Sexual Harassment Podcast: Post-Dobbs Navigating the Fast-Changing and Uncertain Health Care and Life Sciences Practice Group. Cathy Lee focuses her practice on privacy and cybersecurity matters, including compliance and GDPR related matters. The UCPA mirrors the Virginia and Colorado (CPA) definitions of "personal data," defining the term to broadly apply to any data that is "linked or reasonably linkable" to an individual. Either (i) control or process the personal data of at least 100,000 residents or (ii) derive over 50% of its gross revenue from the sale of personal data and controls or processes personal data of at least 25,000 residents. NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us. The UCPA requires a controller to execute an agreement with a processor, defined as a person who processes personal data on behalf of a controller. Utah has joined Virginia, Colorado and California in enacting a comprehensive privacy law. Notably, the Utah Law differs from existing omnibus state privacy laws by requiring businesses to have $25 million or more in annual revenue to fall under the law, in addition to satisfying at least one other threshold. Under the Utah Consumer Privacy Act, consumers within the state are entitled to the following data protection and personal privacy rights: The right to be informed of the collection and processing of their personal data. Attorney Advertising Notice: Prior results do not guarantee a similar outcome. Yet after just five working days, the Utah Legislature has settled on a law. The UCPA shares many similarities with other state laws, particularly the Virginia Consumer Data Privacy Act (VCDPA), and businesses operating in or serving consumers in Utah will need to build for compliance by the December 31, 2023, effective date. Heightened Scrutiny of Director Positions By FERC AND DOJ, FDA Updates Manufactured Food Program Standards, Joint Advisory Outlines Attacks by Daixin Team. The Utah Consumer Privacy Act (UCPA) was signed into law by Governor Spencer Cox on March 24th, 2022, joining a growing list of U.S. states with comprehensive . Omer Tene. She routinely advises clients on compliance with domestic and global data protection regulations, including the California Consumer Privacy Act (CCPA), the EU General Data Protection Regulation (GDPR), the Personal Information Protection and Electronic Document Act (PIPEDA), the Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM), and the Health Insurance Portability and Accountability Act (HIPAA). Consent & Preferences Scale your IT risk management programs. Jackie Klosek Bankruptcy; Business Law; Cannabis; Civil Rights; Consumer Protection Regarding enforcement, the burden will fall upon Utah's AG to pursue actions referred by the Division of Consumer Protection (which is within the Utah Department of Commerce), the body tasked with investigating potential violations of the law. Additionally, organizations should conduct a current state assessment against the new state obligations to identify any compliance gaps and develop a roadmap of future activities to address compliance gaps and operationalize new requirements. The UCPA will apply to Utah businesses that have an annual revenue of at least US$25 million and either (1) control or process personal data of 100,000 or more consumers per year or (2) derive over 50% of the business's gross revenue from the sale of personal data and control or process personal data of 25,000 or more consumers. NLRB General Counsel Abruzzo Issues Memo on Employer Surveillance in 2022 Labor and Employment Tri-State Legislative Update: CT, MA, and RI. Failure to comply could cost businesses up to $7,500 per violation plus the actual damage to the consumer. A business in compliance with California, Colorado, and Virginia's laws should have no issue meeting the UCPA's deadline of December 31, 2023. Similar to the European Unions General Data Protection Regulation (GDPR), Utah, with the UCPA, has adopted the controller-processor approach within the law. However, the law does not prohibit companies from offering loyalty or club card programs. Legal Topics Menu Toggle. In The Zone? On March 25, 2022 Utah became the sixth state to enact a comprehensive privacy law, the Utah Consumer Privacy Act. However, in contrast to the CCPA/CPRA, VCDPA, and CPA, the UCPA does not require controllers to conduct any formal data processing risk assessments prior to processing certain personal and sensitive data. He counsels clients on a wide range of topics, including consumer protection law, cross-border data flows, and data breach response and prevention. Utah is the fourth U.S. state to adopt a consumer privacy law, preceded by California, Virginia and Colorado. CAUTION - Before you proceed, please note: By clicking accept you agree that our review of the information contained in your e-mail and any attachments will not create an attorney-client relationship, and will not prevent any lawyer in our firm from representing a party in any matter where that information is relevant, even if you submitted the information in good faith to retain us. And unlike the CCPA/CPRA and CPA, the UCPA does not include provisions on dark patterns.. Longtime readers will recognize the close kinship between the UCPA and Virginia's and Colorado's privacy laws. Residents of the state in an individual or household context (note, commercial or employment context is not included in the scope of the law, so, for example, the law does not apply to business-related or employment data). The Acts applicability would make it narrower than any currently enacted state privacy law to date. Has an annual revenue of at least $25 million and satisfies either: (1) during a calendar year, controls, or processes personal data of 100,000 or more consumers, and/or (2 . No attorney-client or confidential relationship is formed by the transmission of information between you and the National Law Review website or any of the law firms, attorneys or other . It is likely that personal data a controller derives or infers from a consumers personal data, and potentially, any data the controller obtains from a third party, will be exempt from deletion requirements. Notably, the Act does not provide consumers with the right to correction. educating consumers and businesses about the statutes regulated by the division, and licensing or registering regulated entities. Controllers determine why and how personal data is processed, while processors process personal data on behalf of a controller. As always, it is important to actively monitor changes in the law because Utah's law. This law provides new consumer privacy rights to . UCPA separately defines "sensitive information" and provides consumers the right to opt-out of the processing of their sensitive data, which differs from the other state privacy laws that require consumers to opt-in to such processing. Such an agreement must include specific instructions from the controller to the processor regarding the nature and purpose of the processing, the type of data subject, the duration of the processing, and the parties rights and obligations.
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