In late August 2023, California’s Privacy Protection Agency (“CPPA”) issued a discussion draft highlighting upcoming regulations under the state’s Consumer Privacy Act. An important highlight of this proposal is the call for comprehensive annual audits of company cybersecurity initiatives to assess compliance and sufficiency.
The proposed audits, released by the CPPA, aim to significantly increase the existing cybersecurity obligations for companies. The proposed regulations confer responsibility on companies to periodically assess their cybersecurity initiatives and file audits with the CPPA. This step, although not yet part of an official rule-making process, is being seriously discussed within the Agency.
The new regulatory proposal comes within the framework of the a href=”https://www.jdsupra.com/legalnews/california-proposes-annual-audits-to-8541796/” target=”_blank”>California Consumer Privacy Act (“CCPA”). The CCPA, passed in mid-2018, is landmark legislation designed to empower consumers with data privacy rights and compel companies to adhere to stringent transparency standards concerning customer data collection, use and protection.
If these proposed audits become law, they may set a new level of scrutiny for corporate data security measures. Companies operating in California or handling the data of California residents may need to rethink their cybersecurity strategies and ensure sufficient resources are devoted towards achieving and maintaining the necessary compliance levels.
It is important for legal professionals within corporations to regularly review these changing regulations to minimize risk and avoid potential legal complications arising from non-compliance. Reports such as these also offer invaluable insights into the potential trajectories of data privacy regulations, potentially reshaping cybersecurity programs worldwide.