California Attorney General Rob Bonta announced the launch of an investigative sweep Friday targeting popular streaming apps and devices, alleging noncompliance with the California Consumer Privacy Act (CCPA).
The focus of the sweep is to confirm adherence to the CCPA’s opt-out requirements for businesses selling or sharing consumer personal information, signaling increased scrutiny of those failing to provide an easy cancel mechanism.
Bonta emphasized the significance of safeguarding personal information as families increasingly rely on streaming platforms for entertainment. He urged consumers to be aware of their rights under the CCPA, especially the right to instruct businesses to stop selling their personal information.
“California was the first state in the nation to give consumers the legal right to tell businesses: ‘don’t sell my data,’” he said in a press release. “[W]e are taking a close look at how these streaming services are complying with requirements that have been in place since 2020.”
The CCPA, a groundbreaking law granting increased privacy rights to California consumers, requires transparency from businesses in how they collect, share, and disclose personal information, and that they make it easy for consumers to exercise this right with minimal steps.
In March, the Federal Trade Commission proposed a “click to cancel” provision to facilitate easier cancellation of subscriptions, which has come under scrutiny for potentially being unfavorable to mom-and-pop companies.
The proposed rule aims to make canceling subscriptions as simple as signing up, saving consumers time and money. Additionally, sellers would be required to seek consumer consent before making additional offers when canceling subscriptions and provide annual reminders for automatic renewals.
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