While we noted at the outset that the UCPA most closely resembles the VCDPA, there are subtle differences between them. The National Law Review is a free to use, no-log in database of legal and business articles. 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. The attorney general may not take action if the violation is cured within 30 days. To ensure being ready when the UCPA and other state laws go into effect, organizations should develop/review data inventories across all applicable products and consumer/corporate functions to understand the flow of consumer personal information across business units, service providers, and third parties, as well as the purpose behind it. Her practice area also focuses on technology, data privacy and cybersecurity, as well as transactional and regulatory matters for clients across industries. 11 Consumer Privacy Act, State of Utah. New York City Joins Growing Number of Jurisdictions Requiring Pay RIAs Beware: The Pitfalls When Going Straight To The (Out)Source. The new law also contains specific requirements for companies that want to collect sensitive data (such as information about an individuals race or ethnic origin, religious beliefs, sexual orientation, citizenship or immigration status, medical information or treatment information, genetic or biometric data, or specific geolocation data). The right to obtain copies of any personal data they previously . 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. If the director of the Division of Consumer Protection has reasonable cause to believe that substantial evidence exists that the business is in . Certain entities are exempt from the bill's requirements, including governmental entities and third parties under contract with a governmental entity that acts on behalf of that entity; tribes; institutions of higher education; nonprofits; certain types of health information subject to federal health privacy laws; consumer reporting agencies . IT Risk & Security Assurance Automate the third-party lifecycle and easily track risk across vendors. After the 30-day cure period, if a controller or processor remains in breach, the Utah Attorney General could seek to recover actual damages to the consumer and up to $7,500 for each violation. The Evolving New York City Workplace: Two Important Updates Effective 5 Questions with Mike DeCesaris: AI/ML Efficiency Driven by GPUs. The SEC's Immensely Impracticable Impracticability Exception. However, controllers may offer bona fide loyalty, rewards, and discount programs and offer a different price or quality of product or service if a consumer opts out of targeted advertising. The UCPA is both similar to and different from the consumer privacy laws of California, Virginia and Colorado. The UCPA applies to for-profit entities ("controllers" or "processors") that (1) conduct business in Utah or target products and services to consumers who are residents of the state, (2) have annual revenues of at least $25 million, and (3) meet one of two threshold requirements: The law exempts certain types of data and entities, including publicly available data, de-identified data, and data subject to the Health Insurance Portability and Accountability Act, the Driver's Privacy Protection Act, and the Family Education Rights and Privacy Act. The UCPA applies to any controller or processor who (1) conducts business in Utah or produces a product or service that is targeted to Utah residents; (2) has annual revenue of $25 million or more; and (3) either (a) controls or processes personal data of 100,000 or more consumers in a calendar year, or (b) derives more than 50% of its gross . Yet after just five working days, the Utah Legislature has settled on a law. 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. 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. David P. Saunders (CIPP/US, CIPM) is an experienced litigator who focuses his practice on privacy and cybersecurity matters. The Utah Consumer Privacy Act ( SB 227) unanimously passed the Utah Senate on February 25. 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. Additionally, in response to a data deletion request, the UCPA requires controllers only to delete personal data that a consumer provided to the controller. On March 24, 2022, the Utah Consumer Privacy Act (UCPA) was signed into law with an effective date of December 31, 2023. Specifically, consumers may request to: Controllers have 45 days to respond to a request, with a 45-day extension if reasonably necessary. Cal. EPA Provides Report to Congress on Its Capacity to Implement Certain SEC Adopts Amendments Requiring Electronic Filing of Forms 144. The National Law Review - National Law Forum LLC 3 Grant Square #141 Hinsdale, IL 60521 Telephone (708) 357-3317 ortollfree(877)357-3317. Jackie Klosek The Utah Attorney Generals Office and Utah Division of Consumer Protection is responsible for investigating UCPA violations and enforcing the law. to mandate consumer privacy protections. The definition of targeted advertising aligns with the definitions under the VCDPA and CPA, but there is no provision that allows or requires controllers to fulfill this right by responding to a universal opt out mechanism/global privacy control (as is the case under the CPA and CCPA/CPRA). Main Menu. The California Privacy Rights Act Could now Apply to Your Business. The Connecticut Act Concerning Personal Data Privacy and Online Monitoring (CTDPA) was signed into law on May 10, 2022 and is scheduled to take effect on July 1, 2023. While the UCPA includes many of the same obligations as the other state privacy laws, it is unique in that it: (i) has a narrower scope of applicability; (ii) has limited consumer data privacy rights; (iii) has less stringent requirements for data processor agreements; and (iv) lacks a risk assessment requirement for the processing of certain types of data. Ninth Circuit Holds that Implied Preemption Bars State Law Claims FTC Action Against Drizly and CEO Provides Insight Into Its Security Privacy Tip #348 Considerations for Electronic Monitoring of SEC Awards $2.5 Million to Whistleblowers Who Reported Fraudulent Parting Advice: Judge Drain Rules That Dividends Paid From the Texas Sues Google for Gathering Biometric Data, FTC Proposes Trade Regulation Rule on Deceptive Reviews. Do Smartwatches, GPS Devices, and Other Employee Tracking Revised NLRB Election Standards Should Lead to More In-Person Union Sackett II Me: Breaking Down the Arguments in Sackett v. EPA [PODCAST], NLRB General Counsel Memo on Electronic Monitoring of Employees. Spencer Cox signed the Utah Consumer Privacy Act (UCPA). 16 Consumer Privacy Act, State of Utah. Legal Topics Menu Toggle. There is no private right of action, and the law expressly preempts state and local privacy laws. California Court of Appeal Dismantles Rounding Where Accurate Defense Contractors - Check Your Non-Disclosure Agreements for Three Notable Antitrust & Tech Updates That May Have Flown Under Justice Department Obtains Permanent Injunction Blocking Penguin SEC Awards Whistleblower $10 Million After Returning Money to Harmed Uncovering Juror Bias, Counteracting Nuclear Verdicts, & the Future of Fall Back: Westchesters Pay Transparency Law Takes Effect on November 6, 2022. The UCPA largely mirrors the 2021 Virginia Consumer Data Protection Act and incorporates the familiar distinctions of "controllers" and "processors" originally found in Europe's General Data Protection Regulation ("GDPR"). 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. The ease with which goods and services flow across state boundaries, thereby triggering obligations to comply with state privacy laws, requires businesses to be aware of and comply (t)(2)(C); 1798.145. An Updated Federal Overtime Rule: Whens It Coming? Despite these remaining hurdles, the bill is widely expected to become the fourth comprehensive state consumer privacy law in the United States and the first such bill to become law in 2022. 15 Child is defined as an individual younger than 13 years old. Danica advises clients on data privacy and security issues relevant to buying or selling a company, data usage and rights, advertising and marketing, performing gap and risk assessments, and planning cybersecurity incident response. The UCPA provides certain exceptions where a controller may deny a consumer request; however, the burden of demonstrating9that the request falls under such exceptions is on the controller. The UCPAdoes notprovide consumers with a private right of action not even a limited right, as there is under the CCPA/CPRA. The Utah Consumer Privacy Act (UCPA) was signed into law on March 24, 2022 and is scheduled to take effect on December 31, 2023. The UCPA applies to controllers and processors that conduct business in the state of Utah or produce a product or service that is targeted to Utah residents, have annual revenue amounts of $25,000,000 or more, and: Consumer Rights Under the new legal framework, Utah residents are granted the following six categories of rights: A business in compliance with California, Colorado, and Virginia's laws should have no issue meeting the UCPA's deadline of December 31, 2023. 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. The Act grants the Utah Department of Commerce Division of Consumer Protection the power to investigate consumer complaints regarding the processing of their personal information by a business. The UCPA adopts the "controller" and "processor" framework used in the EU's General Data Protection Regulation (GDPR) and in Virginia's and Colorado's privacy laws. 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. Utah's privacy law is unique in that controllers don't need to obtain opt-in consent to collect and process sensitive data. The UCPA also relaxes requirements for processing sensitive data compared to the VCDPA and CPA. Update March 31, 2022: Utah Governor Spencer Cox signed the bill into law March 24, 2022. 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 . Spencer Cox, R-Utah, signed the Utah Consumer Privacy Act into law, making Utah the fourth state to enact comprehensive consumer privacy legislation. Controllers and processors must enter into a written contract that sets out the details of processing, such as the personal data to be processed, the purpose of processing, and the parties' rights and obligations. Virginia, with its Virginia Consumer Data Protection Act, and Colorado, with its Colorado Consumer Protection Act, adopted a very similar approach. Diligent awareness of updates to privacy laws will be critical for compliance in this ever-changing landscape . The National Law Review is not a law firm nor is www.NatLawReview.com intended to be a referral service for attorneys and/or other professionals. The attorney general and the Division of Consumer Protection must report on the effectiveness of the enforcement provisions and the data protected and not protected by the law, but do not have explicit rulemaking authority. It also applies if you produce or deliver commercial products or services targeted to Utah residents with annual revenue of at least $25 million, plus one of the following two items. But security does feature within the UCPA. The new law provides new rights for consumers and new obligations for companies who collect or process consumer data. Challenges in the Valuation of VC-Backed Companies: Why Relying on NYDFSs $4.5 Million EyeMed Cyber Settlement Reminder To Industry, ESG Considerations for Retirement Plans: A Moving Target, European Commission Publishes Report on Decentralized Finance. Contact Information Phone: (801) 530-6601 With passage of the Utah Consumer Privacy Act (UCPA), Utah will become the fourth state to adopt omnibus consumer privacy legislationfollowing California, Virginia, and Colorado when Utah Governor Spencer Cox signs the bill. 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. Failure to comply could cost businesses up to $7,500 per violation plus the actual damage to the consumer. The UCPA is largely based on the Virginia Consumer Data Protection Act (" VCDPA "). Utah became the fourth US state after California, Virginia, and Colorado to enact a comprehensive privacy law. 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. March 8, 2022 The Utah Consumer Privacy Act ("UCPA" or the "Act") is on its way to the Governor's desk. Produces a product or service that is targeted to consumers who are Utah residents. 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. The attorney general holds exclusive enforcement authority and must provide entities with written notice of an alleged violation and a 30-day opportunity to cure. So bereiten sich Arbeitgeber auf die elektronische New Employment Law Requirements for Companies with US-Based Employees. CPA. The content and links on www.NatLawReview.comare intended for general information purposes only. Draft of Enrolled Bill Prepared. Consumers are required to submit complaints regarding UCPA violations to the Utah Division of Consumer Protection, which will investigate such complaints and refer them to the Attorney Generals Office if there is reasonable cause to believe that a violation has occurred. HAPPY OTSA DAY! Specifically, consumers may only file complaints with the Division of Consumer Protection (the "Division"). Cathys experience encompasses, working with digital advertising companies to confirm compliance policies with the digital advertising ecosystem, as well as drafting training materials on the comprehensive data privacy laws globally including in Australia, Georgia, Hong Kong, Moldova, Montenegro, South Korea, Turkey and New Zealand. 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. 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. Longtime readers will recognize the close kinship between the UCPA and Virginia's and Colorado's privacy laws. 5 Consumer Privacy Act, State of Utah. CMA BLOCKS META/GIPHY IT MIGHT BE THE META UNIVERSE BUT WE'RE Five Data Quality Nightmares That Haunt Marketers and How Avoid Them. AMBULANCE CHASER? Unlike other state laws, the Utah Consumer Privacy Act does not allow consumers to opt-out of automated profiling.. The contract must prohibit the entity receiving the information from retaining, using, or disclosing the personal . The right to delete their own personal data provided to a controller. 12 Consumer Privacy Act, State of Utah. Consent & Preferences Scale your IT risk management programs. Governor Cox has 20 days to sign the bill or take no action (after which it will become law), or veto the bill. Legislative Research and General Counsel / Enrolling. Utah Governor Spencer Cox signed Utah Consumer Privacy Act ("UCPA") into law on March 24, 2022the first major state law domino to fall in 2022 and the first comprehensive data privacy legislation since July 2021. The Acts applicability would make it narrower than any currently enacted state privacy law to date. Attorney Advertising Notice: Prior results do not guarantee a similar outcome. 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. Although many of the protections are similar to the other states' laws, Utah's new bill, if enacted, will potentially have a narrower scope. Legislative Research and General Counsel / Enrolling. Employers. Third-Party Risk Operationalize your values by streamlining ethics and compliance management. Passing a comprehensive state privacy law has proven to be no small task. It contains similar definitions for a "controller" and "processor" as those found in the Colorado and Virginia laws. However, the law does not prohibit companies from offering loyalty or club card programs. As explained below, that distinction is more than just a difference in diction: it . Senate Bill 227, the Utah Consumer Privacy Act, cleared the Senate Feb. 25 on a 28-0 vote and the House followed suit with 71-0 approval March 2. Effective Date December 31, 2023. With the recent signing of the Utah Consumer Privacy Act ( UCPA) by Gov. OBLIGATIONS OF CONTROLLERS AND PROCESSORS, FAMILIAR TRANSPARENCY AND SECURITY REQUIREMENTS, The UCPA requires controllers to provide consumers with a privacy policy that includes similar disclosures as required under the other state frameworks. 4 Consumer Privacy Act, State of Utah. Importantly, the law defines consumers as residents of Utah acting in an individual or household context. On March 24, Gov. Utah's Senate unanimously passed the UCPA on February 25. National Law Review, Volume XII, Number 63, Public Services, Infrastructure, Transportation. CONSUMER PRIVACY RIGHTS AND SENSITIVE DATA. Omer Tene. CCPA. Under certain state laws the following statements may be required on this website and we have included them in order to be in full compliance with these rules. This law provides new consumer privacy rights to . Rather, the state attorney general enforces the law. Applicability of the law 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. Ensure you have appropriate agreements in place with those who process information on your behalf. The right to access their personal data. Key provisions in the bill include the following: 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. Utah has joined Virginia, Colorado and California in enacting a comprehensive privacy law. The Utah Consumer Privacy Act ("UCPA") provides for consumer rights and responsibilities for controllers and processors.

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