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Sean Hill
Sean Hill
Sean Hill is a Partner focused on the technology, software and intellectual property aspects of transactions, as well as data privacy and cybersecurity matters.
Experience
Sean has extensive experience advising private equity sponsors and their portfolio companies, other strategic investment firms and other public and private companies on the technology, software, intellectual property, cybersecurity and data privacy aspects of mergers and acquisitions, financings and other complex transactions.
Sean’s range of capabilities include drafting and negotiating various technology agreements and related documentation, such as software and technology licenses, distribution and reseller arrangements, data processing and sharing agreements and joint research and development.
His industry experience includes digital media, enterprise and consumer software, consumer packaged goods, sports, retail, blockchain and cryptocurrency and energy.
Sean has been recognized in Best Lawyers: Ones to Watch® in America for Intellectual Property Law.
Prior to joining Massumi + Consoli, Sean practiced at Vinson & Elkins.
In law school, Sean was a member of the Texas Law Review.
Education
- University of Texas at Austin School of Law, J.D., with Honors
- Vanderbilt University, B.E., magna cum laude
Bar Admissions
- Texas
- New York
News & Insights
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10.11.23
A Private Equity Diligence Spotlight: Evaluating a Portfolio Company’s Compliance with the CCPA’s Latest Requirements
%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EBy%3C%2Fspan%3E+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fattorneys%2Fsean-hill%2F%22%3ESean+Hill%3C%2Fa%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cdiv+id%3D%22block-yui_3_17_2_1_1697055876820_250721%22+class%3D%22sqs-block+html-block+sqs-block-html%22+data-block-type%3D%222%22+data-border-radii%3D%22%7B%26quot%3BtopLeft%26quot%3B%3A%7B%26quot%3Bunit%26quot%3B%3A%26quot%3Bpx%26quot%3B%2C%26quot%3Bvalue%26quot%3B%3A0.0%7D%2C%26quot%3BtopRight%26quot%3B%3A%7B%26quot%3Bunit%26quot%3B%3A%26quot%3Bpx%26quot%3B%2C%26quot%3Bvalue%26quot%3B%3A0.0%7D%2C%26quot%3BbottomLeft%26quot%3B%3A%7B%26quot%3Bunit%26quot%3B%3A%26quot%3Bpx%26quot%3B%2C%26quot%3Bvalue%26quot%3B%3A0.0%7D%2C%26quot%3BbottomRight%26quot%3B%3A%7B%26quot%3Bunit%26quot%3B%3A%26quot%3Bpx%26quot%3B%2C%26quot%3Bvalue%26quot%3B%3A0.0%7D%7D%22%3E%0A%3Cdiv+id%3D%22yui_3_17_2_1_1710789956693_511%22+class%3D%22sqs-block-content%22%3E%0A%3Cdiv+id%3D%22yui_3_17_2_1_1710789956693_510%22+class%3D%22sqs-html-content%22%3E%0A%3Cp+id%3D%22yui_3_17_2_1_1710789956693_509%22+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ESince+being+enacted+in+June+2018+and+becoming+fully+operative+in+January+2020%2C+the+California+Consumer+Privacy+Act+%28the+%E2%80%9CCCPA%E2%80%9D%29%5B1%5D+has+been+an+area+of+focus+for+many+investors%2C+particularly+when+evaluating+targets+in+the+software+or+digital+media+spaces.+This+is+due+in+large+part+to+the+fact+that+the+CCPA+was+the+first+comprehensive+state+data+privacy+law%2C+and+it+remains+arguably+the+state+privacy+law+with+the+broadest+applicability.+The+CCPA+once+again+became+an+area+of+renewed+focus+this+year+when+the+California+Privacy+Rights+Act+%28the+%E2%80%9CCPRA%E2%80%9D%29%5B2%5D%E2%80%94which+amended+the+CCPA%E2%80%94became+effective+on+January+1st.+Now+that+the+CPRA+has+begun+to+be+officially+enforced%2C+as+of+July+1%2C+2023%2C+it+is+more+important+than+ever+for+investors+to+ensure+that+prospective+or+existing+portfolio+companies+comply+with+the+new+privacy+regime.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Ch3%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3EDoes+the+CCPA+Apply%3F%3C%2Fspan%3E%3C%2Fh3%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EBefore+discussing+what+the+CCPA+requires+%28including+the+new+requirements+imposed+by+the+CPRA%29%2C+it+is+helpful+to+understand+when+the+CCPA+does+and+does+not+apply+to+a+business.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul+data-rte-list%3D%22default%22%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3E%3Cem%3E%E2%80%9CDoes+Business%E2%80%9D+in+California%3A%3C%2Fem%3E%3C%2Fstrong%3E+To+start%2C+a+company+must+%E2%80%9Cdo%5B%5D+business%E2%80%9D+in+California.%5B3%5D+The+CCPA+does+not+define+what+this+means+but+is+viewed+as+applying+broadly+to+not+only+those+entities+that+have+a+physical+presence+in+California+%28e.g.%2C+an+office+or+some+employees+in+California%29+but+also+those+entities+that+simply+conduct+sales+or+other+transactions+in+California.%5B4%5D+As+such%2C+entities+that+merely+transact+sales+online+to+any+state%2C+including+California%2C+likely+meet+the+%E2%80%9Cdoing+business%E2%80%9D+requirement.+Moreover%2C+if+a+company%E2%80%99s+parent+or+other+controlling+entity+%E2%80%9Cdoes+business%E2%80%9D+in+California%2C+the+Company+is+also+deemed+by+the+CCPA+to+be+doing+business+in+California.%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul+data-rte-list%3D%22default%22%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3E%3Cem%3ECollect+Personal+Information+of+California+Residents%3A%3C%2Fem%3E%3C%2Fstrong%3E+Next%2C+a+company+must+collect+the+personal+information+of+some+California+residents+and+have+some+involvement+in+determining+the+means+and+purposes+for+processing+that+information.%5B5%5D+This+technically+could+be+information+regarding+as+few+as+one+California+resident%2C+although+other+thresholds+must+apply+%28see+below%29.+Personal+information+includes+many+different+categories+of+data+under+the+CCPA+but+must+be+%E2%80%9Cinformation+that+identifies%2C+relates+to%2C+describes%2C+is+reasonably+capable+of+being+associated+with%2C+or+could+reasonably+be+linked%2C+directly+or+indirectly%2C+with+a+particular+consumer+or+household.%E2%80%9D%5B6%5D%C2%A0Specific+categories+of+personal+information+under+the+CCPA+include%3A%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cul+data-rte-list%3D%22default%22%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EContact+information+%28e.g.%2C+name%2C+mailing+address%2C+email+address%2C+IP+address%2C+social+security+number%2C+driver%E2%80%99s+license+number%2C+account+name%2C+etc.%29%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EPersonal+information+found+in+records+protected+by+California+statute%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ECommercial+information+%28e.g.%2C+records+of+purchasing+history%29%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EBiometric+information%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EInternet+activity+information+%28e.g.%2C+browsing+history%2C+search+history%2C+etc.%29%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EGeolocation+data%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EAudio%2C+electronic%2C+visual%2C+thermal%2C+olfactory%2C+or+similar+information%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EProfessional+or+employment-related+information%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EEducation+information+%28as+defined+under+the+Federal+Educational+Rights+and+Privacy+Act%29%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EInferences+drawn+from+the+above+information+to+create+a+profile+about+a+consumer+%28e.g.%2C+a+consumer%E2%80%99s+preferences+or+behavior%29%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ESensitive+personal+information%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ENote+that+the+category+of+%E2%80%9Csensitive+personal+information%E2%80%9D+is+a+new+category+that+was+added+by+the+CPRA.+It+includes+items+such+as+social+security+number%2C+financial+information%2C+racial+or+ethnic+origin%2C+genetic+data%2C+biometric+data%2C+health+information%2C+and+information+concerning+sexual+orientation.%5B7%5D%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul+data-rte-list%3D%22default%22%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3E%3Cem%3EMeet+at+Least+One+of+the+Following+Thresholds%3A%3C%2Fem%3E%3C%2Fstrong%3E+If+a+company+meets+the+above+requirements%2C+the+CCPA+still+does+not+apply+unless+the+company+also+meets+at+least+one+of+the+following+three+thresholds%3A%5B8%5D%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cul+data-rte-list%3D%22default%22%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B+font-size%3A+16px%3B%22%3E%C2%A01.+Had+a+gross+annual+revenue+exceeding+%2425M+USD+in+the+prior+year%3B%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E2.+Anually+buys%2C+sells%2C+or+shares+the+personal+information+of+100%2C000+or+more+California+consumers+or+households%3B+or%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E3.+Derives+at+least+50%25+of+its+annual+revenues+from+the+selling+or+sharing+of+personal+information+%28of+California+residents%29.%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3C%2Fdiv%3E%0A%3Cdiv+id%3D%22yui_3_17_2_1_1710789956693_510%22+class%3D%22sqs-html-content%22%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22font-size%3A+16px%3B+color%3A+%237f7f7f%3B%22%3EIn+our+deal+experiences%2C+the+threshold+that+most+often+applies+to+prospective+or+existing+portfolio+companies+is+the+first+one+%28i.e.%2C+the+%2425M+threshold%29%2C+as+it+is+much+more+difficult+for+a+company+to+meet+the+other+thresholds.+The+revenue+threshold+is+measured+on+a+company-wide+basis+%28i.e.%2C+taking+into+account+affiliates+and+subsidiaries%29%2C+which+makes+it+easier+to+meet.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Ch3%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3EWhat+Does+the+CCPA+%28as+Amended+by+the+CRPA%29+Require%3F%3C%2Fspan%3E%3C%2Fh3%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3E%3Cstrong%3EA.%3C%2Fstrong%3E+%3Cstrong%3EOnline+Privacy+Policy+Disclosures%3C%2Fstrong%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%5B9%5D%3C%2Fspan%3E%3C%2Fspan%3E+The+CCPA+requires+that+a+company+post+an+online+privacy+policy+that+contains+the+following+disclosures%3A%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul+data-rte-list%3D%22default%22%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cem%3E%3Cspan+style%3D%22text-decoration%3A+underline%3B%22%3EDescription+of+CCPA+Consumer+Rights%3C%2Fspan%3E%3A%3C%2Fem%3E+The+CCPA+allows+consumers+to+exercise+certain+rights%2C+which+must+all+be+listed+and+disclosed+in+the+privacy+policy%3A%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cul+data-rte-list%3D%22default%22%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ERight+to+request+information+regarding+the+company%E2%80%99s+collection+and+sale+of+personal+information%3B%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ERight+to+request+deletion+of+personal+information+collected+about+a+consumer%3B+and%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ERight+to+opt+out+of+sales+of+personal+information.%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThe+right+to+request+information+includes+the+right+for+a+consumer+to+request+information+regarding+the+categories+of+personal+information+collected+about+them+%28as+well+as+the+specific+information+collected%29%2C+the+categories+of+sources+from+which+such+information+is+collected%2C+the+categories+of+information+that+are+sold+%28if+sold+at+all%29+or+disclosed+to+third+parties%2C+the+categories+of+third+parties+to+whom+such+information+is+sold+or+disclosed%2C+and+the+business+or+commercial+purpose+for+collection+of+the+personal+information+from+the+consumer.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EIn+addition%2C+the+policy+will+need+to+disclose+new+rights+created+by+the+CPRA+and+which+became+effective+on+January+1%2C+2023%3A%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul+data-rte-list%3D%22default%22%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ERight+to+correct+inaccurate+personal+information%3B%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ERight+to+limit+the+use+and+disclosure+of+sensitive+personal+information%3B+and%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ERight+to+opt+out+of+automated+decision-making+technology.%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ERegarding+the+right+to+limit+use+and+disclosure+of+sensitive+information%2C+if+a+company+uses+and+discloses+sensitive+personal+information%2C+the+CPRA+requires+a+link+on+the+company%E2%80%99s+website+or+other+online+services+that+allows+users+to+elect+to+limit+the+company%E2%80%99s+use+and+disclosure+of+such+information+to+only+that+which+is+necessary+to+provide+the+goods+or+services+reasonably+expected+by+an+average+consumer.+The+link+should+be+titled+%E2%80%9C%3Cstrong%3E%3Cem%3ELimit+the+Use+of+My+Sensitive+Personal+Information%3C%2Fem%3E%3C%2Fstrong%3E.%E2%80%9D%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ERegarding+automated+decision-making%2C+while+not+fully+defined+by+the+CPRA%E2%80%99s+amendments%2C+it+is+essentially+a+method+of+user+profiling%E2%80%94i.e.%2C+using+personal+information+to+evaluate%2C+analyze%2C+or+predict+a+personal%E2%80%99s+economic+status%2C+health%2C+behavior%2C+interests%2C+location%2C+or+movements.+In+our+deal+experience%2C+many+businesses+do+not+engage+in+this+practice.+However%2C+if+a+company+does+engage+in+this+practice%2C+an+opt-out+mechanism+must+be+provided+for+users.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul+data-rte-list%3D%22default%22%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cem%3E%3Cspan+style%3D%22text-decoration%3A+underline%3B%22%3EDescription+of+Methods+for+Exercising+CCPA+Consumer+Rights%3C%2Fspan%3E%3A%3C%2Fem%3E+The+privacy+policy+must+disclose+two+or+more+methods+for+a+consumer+to+exercise+the+CCPA+rights+summarized+above.+Many+companies+use+a+dedicated+privacy+email+and+a+dedicated+privacy+%E2%80%9Chotline%E2%80%9D+toll-free+number+to+meet+this+requirement.%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cem%3E%3Cspan+style%3D%22text-decoration%3A+underline%3B%22%3EDescription+of+Categories+of+Personal+Information+Collected%3C%2Fspan%3E%3A%3C%2Fem%3E+The+privacy+policy+must+disclose+the+categories+of+personal+information+collected+by+a+company+in+the+preceding+12+months+%28i.e.%2C+before+the+effective+date+of+the+privacy+policy%29%2C+as+well+as+the+purposes+for+which+such+information+is+used+%28including%2C+any+sales+or+disclosures+of+such+information%2C+as+described+below%29.+If+sensitive+personal+information+is+collected%2C+the+CPRA+requires+that+the+privacy+policy+make+a+separate+disclosure+regarding+the+specific+sub-categories+of+sensitive+personal+information+collected%2C+as+well+as+the+purposes+for+use+and+whether+such+information+is+sold+or+shared.%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cem%3E%3Cspan+style%3D%22text-decoration%3A+underline%3B%22%3EDescription+of+Personal+Information+Sales+or+Sharing%3C%2Fspan%3E%3A%3C%2Fem%3E+The+privacy+policy+must+list+the+categories+of+personal+information+that+the+company+has+sold+in+the+preceding+12+months.+Further%2C+the+CPRA+requires+a+general+statement+regarding+whether+or+not+the+company+sells+or+shares+personal+information.+The+CCPA+defines+%E2%80%9Cselling%E2%80%9D+as+involving+some+exchange+of+monetary+or+other+valuable+consideration+for+the+company%E2%80%99s+provision+of+personal+information.+Further%2C+the+CPRA+defines+%E2%80%9Csharing%E2%80%9D+as+sharing+for+cross-context+behavioral+advertising+purposes.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EIf+a+company+sells+or+shares+personal+information%2C+the+company+must+include+a+link+on+its+website+or+other+online+services+that+allows+users+to+opt+out+of+such+selling+and+sharing.+The+link+should+be+titled+%E2%80%9CDo+Not+Sell+or+Share+My+Personal+Information.%E2%80%9D+Note+that+this+link+is+separate+from+that+above+regarding+sensitive+personal+information%2C+although+some+businesses+have+elected+to+combine+them+into+a+single+opt-out+link.%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cem%3E%3Cspan+style%3D%22text-decoration%3A+underline%3B%22%3EDescription+of+Other+Personal+Information+Disclosures%3C%2Fspan%3E%3A%3C%2Fem%3E+The+privacy+policy+must+list+the+categories+of+personal+information+that+the+company+has+disclosed+in+the+preceding+12+months+and+the+business+purposes+for+disclosing+such+information.+These+purposes+could+include%2C+for+example%2C+providing+goods+or+services+that+a+consumer+has+purchased+or+requested+from+the+company.%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cem%3E%3Cspan+style%3D%22text-decoration%3A+underline%3B%22%3EDisclosure+of+Data+Collection+from+Minors%3C%2Fspan%3E%3A%3C%2Fem%3E+The+CCPA+prohibits+the+sale+of+personal+information+of+a+consumer+under+16+years+of+age+without+affirmative+consent.+As+such%2C+many+companies+do+not+collect+any+information+from+such+consumers+under+16+%28or%2C+often%2C+under+18%29%E2%80%94if+this+applies%2C+a+company+should+include+a+disclosure+in+the+privacy+policy+that+it+does+not+collect+information+from+consumers+under+16.%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3Cli%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cem%3E%3Cspan+style%3D%22text-decoration%3A+underline%3B%22%3EDescription+of+Retention%3C%2Fspan%3E%3A%3C%2Fem%3E+The+CPRA+now+requires+a+privacy+policy+to+disclose+either+the+duration+that+personal+information+is+retained+%28for+each+category+of+personal+information%29+or%2C+alternatively%2C+the+criteria+a+company+uses+to+determine+how+long+it+will+retain+such+information.%3C%2Fspan%3E%3C%2Fp%3E%0A%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3E%3Cstrong%3EB.+%3C%2Fstrong%3E%3Cstrong%3EMethods+for+Exercising+CCPA+Rights%3C%2Fstrong%3E%3C%2Fspan%3E%5B10%5D+A+company+must+implement+methods+internally+to+process+CCPA+data+subject+requests+%28i.e.%2C+requests+of+California+residents+to+exercise+the+rights+discussed+above%29.+This+could+include+setting+up+a+dedicated+privacy+email+or+hotline+or+an+electronic+request+portal+by+which+such+residents+can+exercise+their+CCPA+rights.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3E%3Cstrong%3EC.+%3C%2Fstrong%3E%3Cstrong%3ELimitations+on+Purpose%3C%2Fstrong%3E%3C%2Fspan%3E%5B11%5D+The+CPRA+has+introduced+a+new+requirement%2C+which+limits+the+purpose+for+which+personal+information+can+be+collected+and+used.+Namely%2C+a+company%E2%80%99s+collection%2C+use%2C+retention%2C+and+sharing+of+personal+information+must+be+reasonably+necessary+and+proportionate+to+achieve+the+purposes+for+which+the+information+was+collected+and+may+not+be+processed+further+in+a+manner+that+is+incompatible+with+these+purposes.+Legitimate+%E2%80%9Cbusiness+purposes%E2%80%9D+include+things+such+as+providing+services+to+a+consumer%2C+debugging%2C+and+ensuring+security.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3E%3Cstrong%3ED.+%3C%2Fstrong%3E%3Cstrong%3EReasonable+Security+Procedures%3C%2Fstrong%3E%3C%2Fspan%3E%5B12%5D+The+CPRA+added+an+additional+duty+on+companies+to+implement+reasonable+security+procedures+and+practices+appropriate+to+the+nature+of+the+personal+information+to+protect+the+personal+Information+from+unauthorized+or+illegal+access%2C+destruction%2C+use%2C+modification%2C+or+disclosure.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3E%3Cstrong%3EE.+%3C%2Fstrong%3E%3Cstrong%3EVendor+Contractual+Requirements%3C%2Fstrong%3E%3C%2Fspan%3E%5B13%5D+Under+the+new+requirements+of+the+CPRA%2C+a+company+must+include+certain+items+in+their+contracts+with+vendors+that+act+as+%E2%80%9Cservice+providers%E2%80%9D+%28i.e.%2C+entities+that+process+personal+information+on+behalf+of+a+company%29+or+%E2%80%9Ccontractors%E2%80%9D+%28i.e.%2C+other+entities+that+receive+personal+information+for+a+business+purpose%29.+In+both+cases%2C+a+company+must+include+in+their+contracts+provisions+that+prohibit+the+%E2%80%9Cservice+provider%E2%80%9D+or+%E2%80%9Ccontractor%E2%80%9D+from%3A%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Col%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3Eselling+or+sharing+the+personal+information%3B%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3Eretaining%2C+using%2C+or+disclosing+the+personal+information+other+than+for+business+purposes+specified+in+the+contract+or+as+otherwise+permitted+by+the+CPRA%3B%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3Eretaining%2C+using%2C+or+disclosing+the+information+outside+of+the+direct+business+relationship+between+the+parties%3B+or%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3Ecombining+the+personal+information+received+from+or+on+behalf+of+the+business+with+personal+information+received+or+collected+in+other+contexts.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Fol%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22font-size%3A+16px%3B+color%3A+%237f7f7f%3B%22%3EIn+addition%2C+in+contracts+with+any+%E2%80%9Ccontractor%2C%E2%80%9D+the+company+must+also+include%2C+in+addition+to+the+items+above%3A%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%28I%29+a+certification+by+the+contractor+that+they+understand+and+will+comply+with+the+above+prohibitions%3B+and%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%28ii%29+a+right+of+the+company+to+monitor+the+contractor%E2%80%99s+compliance+via+ongoing+manual+reviews%2C+automated+scans%2C+and+regular+audits+or+testing+at+least+once+every+twelve+%2812%29+months.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EFinally%2C+if+a+service+provider+or+contractor+receives+personal+information+for+any+business+purpose+or+if+a+company+sells+personal+information+or+shares+it+for+behavioral+advertising+purposes+to+any+third+party%2C+the+applicable+contract+must+include%2C+in+addition+to+the+items+above%3A%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%28a%29+a+statement+that+personal+information+is+sold+or+disclosed+only+for+limited+and+specified+purposes%3B%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%28b%29+requirement+for+the+third+party+to+comply+with+the+CPRA+and+provide+the+same+privacy+protection+level+as+required+by+the+CPRA%3B%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%28c%29+requirement+for+the+third+party+to+notify+the+company+if+it+can+no+longer+meet+its+obligations+under+the+CPRA%3B+and%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%28d%29+a+provision+granting+the+company+rights+to+take+%E2%80%9Creasonable+and+appropriate+steps%E2%80%9D+to+help+ensure+the+third+party+uses+the+personal+information+in+a+manner+consistent+with+the+CPRA.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3E%3Cstrong%3EF.+%3C%2Fstrong%3E%3Cstrong%3EEmployee+Privacy+Notice%3C%2Fstrong%3E%3C%2Fspan%3E%5B14%5D+The+CPRA+now+requires+companies+to+provide+a+privacy+notice%2C+at+or+before+the+time+of+collection%2C+to+any+employees+or+job+applicants+from+whom+the+company+collects+personal+data.+The+notice+must+include+the+categories+of+personal+information+that+the+company+collects+%28including+any+sensitive+personal+information+and+any+sub-categories+therein%29%2C+the+purposes+for+which+the+information+is+used%2C+whether+the+information+is+sold+or+shared%2C+and+the+duration+that+the+information+is+retained.+The+employee+notice+must+also+provide+a+description+of+the+CCPA+rights+discussed+above+in+Section+A+%28Online+Privacy+Policy+Disclosures%29%2C+as+employees+and+job+applicants+in+California+can+exercise+these+rights+as+well.+Finally%2C+the+notice+must+describe+the+categories+of+third+parties+to+whom+the+company+discloses+or+allows+to+collect+employee+personal+information.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Ch3%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3EWhat+Happens+if+a+Company+Doesn%26%238217%3Bt+Comply%3F%3C%2Fspan%3E%3C%2Fh3%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ENoncompliance+with+the+CCPA+may+result+in+penalties%2C+issuable+by+the+California+Privacy+Protection+Agency+%28CPPA%29+or+the+California+Attorney+General+and+private+actions+initiated+by+affected+California+residents.+Penalties+issued+by+the+CPPA+or+the+Attorney+General+can+be+up+to+%242%2C500+per+violation+or+up+to+%247%2C500+per+%3Cem%3Eintentional%3C%2Fem%3E+violation.%5B15%5D+The+penalty+is+increased+to+%247%2C500+per+violation+for+anything+involving+the+personal+information+of+consumers+under+16%2C+regardless+of+intentionality.+In+addition%2C+if+a+company+fails+to+implement+and+maintain+reasonable+security+procedures+and+practices%2C+as+required+by+the+new+CPRA+amendments%2C+then+an+affected+consumer+can+initiate+a+privacy+action+against+the+Company+for+%281%29+damages+between+%24100+and+%24750+per+consumer+per+incident+%28or%2C+if+greater%2C+actual+damages%29%2C+%282%29+injunctive+relief+and+%283%29+any+other+relief+that+a+court+deems+proper.%5B16%5D%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Ch3%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3EConclusion%3C%2Fspan%3E%3C%2Fh3%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThe+CCPA+presents+a+unique+and+comprehensive+set+of+legislation+affecting+many+technology+companies%2C+even+if+only+operating+minimally+in+the+state+of+California.+Given+the+CCPA%E2%80%99s+complex+set+of+requirements%2C+both+old+and+recent%2C+as+well+as+the+penalties+for+noncompliance%2C+it+is+important+for+investors+to+properly+evaluate+a+target%E2%80%99s+or+an+existing+portfolio+company%E2%80%99s+level+of+compliance.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3E%3Cem%3EHow+can+an+investor+better+evaluate+a+target%E2%80%99s+compliance+with%2C+or+an+existing+portfolio+company%E2%80%99s+compliance+with%2C+the+CCPA%3F%3C%2Fem%3E%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp+class%3D%22%22%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ETo+more+effectively+evaluate+whether+a+target+in+a+private+equity+transaction+or+whether+an+existing+portfolio+company%2C+in+each+case%2C+complies+with+the+CCPA+in+its+most+recent+and+amended+form%2C+we+have+prepared+the+chart+below%2C+which+summarizes+key+questions+to+aid+in+CCPA+diligence.+In+summary%2C+an+investor+must+first+determine+if+the+target+or+portfolio+company+meets+the+thresholds+for+triggering+the+CCPA.+Next%2C+the+investor+will+need+to+determine+if+the+privacy+practices%2C+both+external+%28the+company%E2%80%99s+online+privacy+policy%29+and+internal+%28the+company%E2%80%99s+internal+controls%2C+vendor+controls%2C+and+employee+controls%29%2C+adequately+meet+the+CCPA%E2%80%99s+requirements.+Each+of+these+categories+involves+different+questions+to+ask%2C+each+summarized+below%2C+of+the+target+or+portfolio+company.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3C%2Fdiv%3E%0A%3C%2Fdiv%3E%0A%3C%2Fdiv%3E%0A%3Cdiv+id%3D%22block-yui_3_17_2_1_1697055876820_294992%22+class%3D%22sqs-block+image-block+sqs-block-image+sqs-text-ready%22+data-block-type%3D%225%22%3E%0A%3Cdiv+id%3D%22yui_3_17_2_1_1710789956693_345%22+class%3D%22sqs-block-content%22%3E%0A%3Cfigure+id%3D%22yui_3_17_2_1_1710789956693_344%22+class%3D%22+sqs-block-image-figure+image-block-outer-wrapper+image-block-v2+design-layout-stack+combination-animation-none+individual-animation-none+individual-text-animation-none+image-position-left+%22+data-scrolled%3D%22%22+data-test%3D%22image-block-v2-outer-wrapper%22%3E%0A%3Cdiv+id%3D%22yui_3_17_2_1_1710789956693_343%22+class%3D%22intrinsic%22%3E%0A%3Cdiv+id%3D%22yui_3_17_2_1_1710789956693_342%22+class%3D%22+image-inset%22+data-animation-role%3D%22image%22+data-description%3D%22%22%3E%0A%3Cdiv+id%3D%22yui_3_17_2_1_1710789956693_341%22+class%3D%22sqs-image-shape-container-element+content-fit+%22%3E%0A%3Cp%3E%3Cimg+loading%3D%22lazy%22+decoding%3D%22async%22+class%3D%22loaded+aligncenter%22+src%3D%22https%3A%2F%2Fimages.squarespace-cdn.com%2Fcontent%2Fv1%2F5ac5657e89c17296ef84a27b%2F44bce092-075b-4c61-ba9e-c506d5d68fdc%2FHow%2Bcan%2Ban%2Binvestor%2Bbetter%2Bevaluate%2Ba%2Btarget%25E2%2580%2599s%2Bcompliance%2Bwith%252C%2Bor%2Ban%2Bexisting%2Bportfolio%2Bcompany%25E2%2580%2599s%2Bcompliance%2Bwith%252C%2Bthe%2BCCPA%2BChart.png%22+sizes%3D%22auto%2C+%28max-width%3A+640px%29+100vw%2C+%28max-width%3A+767px%29+100vw%2C+100vw%22+srcset%3D%22https%3A%2F%2Fimages.squarespace-cdn.com%2Fcontent%2Fv1%2F5ac5657e89c17296ef84a27b%2F44bce092-075b-4c61-ba9e-c506d5d68fdc%2FHow%2Bcan%2Ban%2Binvestor%2Bbetter%2Bevaluate%2Ba%2B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Massumi + Consoli Lawyers Recognized in the 2024 Editions of the Best Lawyers in America and Best Lawyers: Ones to Watch
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