Pub. 8 2019-2020 Issue 2

FALL 2019 19 Consumers will also have the right to opt out of the sale of their personal information and be free from discrimination for electing to do so. Receiving a deletion request from a consumer also creates an obligation for the dealer to notify its service providers to delete the consumer’s personal information from their records. maintains such information in a manner that is compliant with the FCRA, the auto dealer will be in compliance with the CCPA. Exemption for Vehicle Recall or Warranty Repair Information AB 1146 also allows dealers and manufacturers to retain and share information that is collected for the purpose of effectuating a vehicle recall or warranty repair. This law exempts vehicle information, including VIN, make, model, year, odometer reading, and the name and contact information of the registered owners shared between a “newmotor vehicle dealer” and the vehicle’s manufacturer where such information is shared for the purpose of effectuating, or in anticipation of effectuating a vehicle repair relating to warranty work or a recall pursuant to specified federal law. This information is needed so dealers and manufacturers can ensure their vehicles continue to operate safely. Thus, despite the CCPA’s opt-out and deletion requirements, dealers and manufacturers may continue to store and share this vehicle information between each other when it is used for the purpose of effectuating recalls and vehicle repairs. Exemption for Financial Information Resulting from Any Transaction or Service Signed into law in 2018, Senate Bill 1121 exempts from the CCPA data collected, used, stored, disclosed, or sold in compliance with the require- ments of the Gramm-Leach-Bliley Act (“GLBA”). The GLBA regulates management of personally identifiable financial information provided by a consumer to a financial institution or resulting from any transaction with the consumer or any service performed for the consumer. Auto dealers who collect, maintain, and transfer personal information that is subject to and in compliance with the GLBA will also be compliant with the CCPA. Dealers who collect and share information not covered by the GLBA must still comply with the CCPA. Employment-Related Information Exemption Under Assembly Bill 25, until 2021 an individual does not have a right under the CCPA to request that a business delete all of that individual’s personal information if that information was collected because the individual was a job applicant to, an employee of, owner of, director of, officer of, or contractor of the dealership. This exemption is designed to carve-out employee data when the dealership uses the data for employment relationship purposes. Dealers will still need to comply with other portions of the CCPA such as the disclosure requirements and right to opt-out of sales of personal information. Many Provisions of the CCPA Still Apply to Auto Dealers Despitetheseexemptions,dealerswhoobtain,maintain,andshareconsumer informationforpurposesnotcoveredbytheexemptionsstillmustcomplywith theCCPA. Forexample,autodealerswhocollectnon-aggregatedinformation formarketingpurposesmust complywith the CCPA. As noted above, some of the highlighted exemptions are partial exemptions which require auto dealers and manufacturers to still comply with the CCPA’s notification and disclosurerequirementsbutnottheCCPA’sdeletionandopt-outrequirements. Additionally,civilactionsmaystillbebroughtagainstdealersandmanufacturers by consumers whose information is subject to a data breach. The CCPA goes into effect on January 1, 2020 and will be enforced six months after the Attorney General finalized regulations are released, or on July 1, 2020 at the latest. If you have any questions about how the CCPA could affect your dealership, our attorneys are available to provide guidance on this rapidly evolving issue. Jillian P. Harris, Esq. is a Senior Associate at Ferruzzo & Ferruzzo, where she litigates employment and busi- ness-relatedmatters. She defends and advises employers on workplace discrimination, harassment, wage and hour violations, embezzlement, government audits, and regulatory compliance. Ms. Harris also handles com- mercial litigation including contract disputes, business interference claims, fraudactions, and real estatematters. Jacob P. Menicucci, Esq. is an Associate and a member of Ferruzzo & Ferruzzo’s Employment Practices Group. After beginning his career in employment litigation, Mr. Menicucci now counsels automobile dealership employers, and others, to ensure their policies and prac- tices are in compliance with California's ever-changing employment laws. FERRUZZO & FERRUZZO, LLP | A Limited Liability Partnership, including Professional Corporations 3737 Birch Street, Suite 400, Newport Beach, California 92660 | PH: (949) 608-6900 | ferruzzo.com