California's Do-Not-Track Law Presents Challenges to Online Businesses
CalOPPA has national applicability since it applies to any Website, online service, or mobile application that collects personally identifiable information (PII) from "consumers who reside in California." Thus, any online business will need to address its requirements since it likely collects PII from California residents.
The CalOPPA amendments have the tacit support of the Federal Trade Commission. The FTC has been vocal in its support for a do-not-track mechanism on commercial Websites. In 2012, it issued a report to Congress backing the enactment of legislation that encouraged Web site developers to build in privacy protections, include simplified mechanisms like "Do Not Track" protections, and include greater transparency about the use of consumer data. The advertising industry has opposed all such initiatives, but privacy groups and the White House have continued to advocate for such protections.
The law becomes effective January 14, 2014. It does not authorize a private cause of action. The California Attorney General has enforcement authority. Penalties of $2500 per violation would be assessable under the California Unfair Competition Law.