Nevada Colors Within The Lines Of CCPA, Offering A Do Not Sell Right For Covered Information

Nevada's recently enacted SB 220 builds upon its existing online privacy notice regime by allowing consumers to opt out of the sale of their covered information when the law takes effect on October 1, 2019.

Although the law, enacted on May 29, was initially met with some panic by affected businesses, its main change to the existing fabric of state privacy laws is to require implementing a "do not sell" request address within a little over four months, and to respond to those requests within 60 days of the request, or to request a further 30-day extension. This means honoring "do not sell" requests beginning slightly before the end of December 2019. The do not sell right applies to narrower range of information than does the CCPA. It also applies only to activities that clearly constitute a sale, instead of the very broad definition of "sell" under the CCPA keyed to whether data is disclosed or made available in exchange for any sort of consideration (subject to very specific, limited exemptions).

Taken as a whole, the bill offers a more workable and understandable alternative to the California Consumer Protection Act (CCPA) and, considered in conjunction with the Nevada Online Privacy Protection Act which it amends, now offers comparable rights to the CCPA's notice and do not sell provisions found in Cal. Civ. Code §§ 1798.110 and 1798.120. However, these rights are tied to clearer, more comprehensible definitions and provisions that will require fewer operational resources to implement.

Like Nevada's Online Privacy Law, which it amends, the new law applies only to personal information collected online by an "operator" and does not include businesses that have no online presence. An "operator" is defined as a legal entity that: a) owns or operates an Internet website or online service for commercial purposes; b) collects and maintains covered information from consumers who reside in Nevada and who use or visit the internet website or service; and c) purposefully directs its activities toward Nevada or residents thereof. The term excludes third parties that operate, host, or manage Internet websites or online services on behalf of its owner, or that process information on behalf of the owner of an internet website or online service.

Contrary to the CCPA's very broad and somewhat counter-intuitive definition of "sale," the definition in SB 220 accords with a common-sense understanding of the term, which should provide a major help to smaller...

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