Now that the California Consumer Privacy Act is in effect, it is imperative to consider the potential litigation risks that many companies are likely to face as a result of the new law. While many commentators have analyzed the CCPA’s express private right of action for data breaches that occur in the absence of reasonable security measures, it’s important to note that class litigation may be used in an attempt to privately enforce the other aspects of the law.

In particular, certain members of the plaintiffs’ bar have publicly disclosed that they may attempt to assert class-action claims notwithstanding the CCPA’s efforts to limit new private rights of action. While these attempts should ultimately fail based on a fair reading of the CCPA and legislative intent, as well as other obstacles, the risk remains that some companies will find themselves forced to defend claims testing the law’s outer bounds until the courts have a chance to weigh in on how the law should be applied and interpreted.

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Related: CCPA Deep Dive: Focus on Private Right of Action and Class Action Risk

Author

Teresa advises on all aspects of dispute resolution, primarily complex business disputes, class actions, intellectual property and international arbitration. She is the Co-Chair of the North American Class Action Subgroup.

Author

Alexander represents domestic and multinational corporations and individuals involved in complex commercial litigation as well as internal and white-collar investigations. He has substantial experience in state and federal courts representing clients involved in breach of contract, business tort and related commercial litigation.

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