California Privacy Protection Agency (CalPrivacy or CPPA) Executive Director Tom Kemp has helped steer the agency toward a busy 2026. Since January, it hired its first chief privacy auditor, established an Audits Division to review companies’ compliance, launched the Delete Request and Opt-Out Platform (DROP) for consumers and data brokers, and brought enforcement actions against brokers S&P Global and Datamasters. Signaling ongoing active enforcement, on March 3, CalPrivacy issued a decision requiring PlayOn Sports to pay a $1.1 million fine for privacy violations involving students. The agency also sponsored two pieces of new legislation and persuaded the governor to promote privacy. It highlighted most of these efforts in its 2025 Annual Report, published on February 27, 2026.
One of the new bills, AB 2021, would incentivize privacy whistleblowing inside companies, a novel measure that would give CalPrivacy’s enforcers a potent tool to expose and punish privacy violations buried deeper in the data economy.
Looking ahead, to encourage business compliance, CalPrivacy will issue guidance on its new regulations concerning automated decision-making, privacy risk assessments and cybersecurity audits. Four proposed regulations will open for public comment, while the Enforcement Division’s sweeps – with other enforcers around the world – and joint efforts with other states surely will deliver more settlements and actions in 2026.
Kemp spoke to the Cybersecurity Law Report about the latest CalPrivacy developments and what lies ahead in 2026 for the agency. He also discussed what CalPrivacy enforcers are seeing, considerations for company leaders and balancing innovation and regulation.
See “Outgoing CPPA Board Member Discusses Rulemaking and Looming Privacy Issues” (Sep. 25, 2024).
Launch of Audits Division
CSLR: What should businesses know about CalPrivacy’s new Audits Division?
Kemp: The new Audits Division will develop and apply privacy‑compliance audit procedures and conduct complex regulatory examinations of businesses and their practices. The statute calls for a chief privacy auditor to work alongside the executive director, and we are thrilled to have hired Sabrina Ross for the role. Under the leadership of the chief privacy auditor, the division will obtain and analyze privacy and technology records to determine compliance with the CCPA. It complements the Enforcement Division [(Enforcement)]. The Audits Division evaluates compliance and identify gaps, while Enforcement investigates potential violations.
CSLR: What models are informing how you shape the division?
Kemp: We’re fortunate that board member Alastair Mactaggart authored the initiative and its provision for the auditor. Sabrina will sit down with him to get his vision. She also has reached out to comparable agencies in the U.S. and internationally; to data protection authorities in Europe, Canada and Australia; and to the AG and the Department of Financial Protection and Innovation in California. She’s analyzing what the state of the art is while staying forward‑looking about technologies like AI and automated decision‑making tools [(ADMT)]. We’re very excited to have her build a team, and she brings expertise in technology and privacy regulatory compliance. She’s held leadership roles and knows the types of companies operating in the information industry and how they operate.
CSLR: What will trigger audits? Will companies be on a regular cycle?
Kemp: We have flexibility and could assess overall compliance or focus on a specific statutory requirement. We could go deep in one industry or practice or focus on a particular privacy harm, such as the collection of children’s data. Sometimes we may pre-announce a thematic audit in an area. Other times we may work behind the scenes without prior notice. For now, we’re not publicly discussing the initial focus for audits.
CSLR: What should companies expect concerning audit submissions?
Kemp: As provided for in the regulations, the Audits Division will collect the risk assessment attestations, due by April 1, 2028, for any assessments that must happen the next two years. The division will collect attestations annually thereafter, but, if a program or service doesn’t change, the business does not have to resubmit its attestation. It also will collect the cybersecurity audit certifications. Businesses with over $100 million in revenue must submit their certification by April 1, 2028; those with $50 million to $100 million must submit by April 2029; and those with less than $50 million must submit by April 2030. The division plans to follow up on the submissions.
CSLR: Will there be further audit guidance?
Kemp: The Audits Division will provide additional information about both the risk assessment attestations and the cybersecurity audit certifications. We have until 2028 before the first cybersecurity certifications are due, so expect more detail next year. For now, the division’s mandate is to evaluate for compliance gaps and refer potential violations to Enforcement.
[See “Steps to Address the New California Audit Rule That Seeks to Reset Reasonable Security” (Nov. 5, 2025).]
New Whistleblower and Data Deletion Bills
CSLR: CalPrivacy proposed a privacy whistleblower law, AB 2021. Why is it needed, and how would it work?
Kemp: Most data processing happens in a black box. It’s difficult for outside entities like us to see what’s happening. Even when we have an inkling, investigations can take years. We face companies with enormous resources, with armies of lawyers and engineers. Insiders often know when things aren’t done correctly, but in Silicon Valley they have “golden handcuffs,” slugs of stock options and high salaries. They also fear they won’t get another job if they raise a flag.
The bill provides an award of between 15 and 33 percent of what we collect and strong anti‑retaliation protections to incentivize coming forward. The whistleblowers can’t come forward with just any old thing. They must bring something that we vet and designate as a case.
The bill also explicitly covers contractors, not just employees, because a lot of Silicon Valley companies leverage contractors. This gives us another tool to get better visibility into risky practices with personal information while protecting those who report on those practices.
CSLR: What models did you draw from for the proposed whistleblower law?
Kemp: Our deputy director of enforcement, Michael Macko, came from the SEC and saw how whistleblowers help. Recent California legislation included some protections, but not at this level, particularly around contractors and the award. We’re taking the best features of existing laws, but this bill is focused only on the CCPA and privacy. If it passes, the approach could be a model for bills in other tech areas like AI.
[See “What to Know (and Do) About DOJ’s Efforts to Identify and Prosecute Cybersecurity Fraud Under the False Claims Act” (Oct. 30, 2024).]
CSLR: If the CalPrivacy-sponsored Expanding Privacy Rights Act introduced in January passes, what would it change?
Kemp: Senator Josh Becker’s bill (SB 923) has two main components. First, it aligns deletion rights with other state laws by focusing on information “about” the consumer rather than only what was “collected from” the consumer. Second, it would require businesses to offer a web form, not just an email address, because email volleyball creates friction.
CSLR: Did consumer complaints drive this bill?
Kemp: Yes. We’ve had about 10,000 complaints since the inception of CalPrivacy, roughly 150 per week. A good chunk of those involve difficulties communicating with businesses and exercising rights. That’s occurring sometimes because of missing infrastructure and workflows, ignored requests or demands for too much information. The bill is designed to make privacy rights easier to exercise.
Time for Businesses to Adjust for the Omnibus Regulations and Growing DROP Registrations
CSLR: CalPrivacy finalized its regulations for risk assessments, ADMT and cybersecurity audits. What are the expectations and timelines?
Kemp: We created a big package of regulations because the statute explicitly required them. It took three to four years and thousands of public comments. In the end, we landed the airplane on the carrier, and you can debate whether it was stormy. We are proud California now sets a new standard, particularly on cybersecurity audits. New York has something comparable, but only for financial services. To educate businesses on the obligations, we’re publishing bulletins. We have already issued one on the CCPA updates, and businesses should expect more that provide analysis. We’ll host webinars and speak at events, like IAPP and the California Lawyers Association conferences.
On timing, the need to do risk assessments for covered activities under the new regulation began January 1, 2026, with the first set of attestations due April 1, 2028. Businesses should conduct assessments for any new systems coming online. The ADMT regulation takes effect January 1, 2027, and applies when an ADM system completely or substantially replaces a human to make significant decisions about a person using their personal data. There’s a set of rights consumers will have when the criteria for what the regulation defines as an “automated decision” is met. The regulation also requires consumer pre‑use notice as well as opt‑out and access rights for qualifying systems. Cybersecurity audit certifications are due starting in April 2028. The Audits Division will handle risk‑assessment attestations and cybersecurity submissions. Businesses should be aware that the general CCPA updates and risk assessment requirements are already in effect.
CSLR: Is more guidance coming this year?
Kemp: Yes. We’ve started with the CCPA bulletin, and businesses will see a rolling series of additional materials. Quick guides and compliance checklists for cybersecurity audits and risk assessments will be out in spring 2026, for example, and an ADM guide after that.
[See “Updating Compliance Programs to Address the CPPA’s Regulations on ADMT and Risk Assessments” (Sep. 17, 2025).]
CSLR: How is DROP progressing and when does the sandbox for companies open?
Kemp: The rollout is going well. As of February 27, 242,000 residents have registered. The sandbox for data brokers to test processes opens at the end of March. Beginning August 1, they must start accessing consumer deletion requests and have 45 days to process them. Consumers have clearly jumped on the DROP train even though the deletions won’t occur till the fall, which shows the pent‑up demand.
|
Key Dates for Compliance |
|
|
Risk Assessments |
January 1, 2026 (deadline to conduct assessments for covered activities) April 1, 2028 (initial attestations due, and then annually on April 1) |
|
ADMT Consumer Rights (Including Pre-Use Notice, Opt-Out, Access) |
January 1, 2027 |
|
Cybersecurity Audit Certifications |
April 1, 2028 (for companies with >$100M revenue) April 1, 2029 (for companies with $50M–$100M revenue) April 1, 2030 (for companies with <$50M revenue) |
|
DROP (Delete Act) |
January 1, 2026 (consumer registration opened) March 2026 (sandbox for brokers opens) August 1, 2026 (brokers must begin accessing deletions and process them every 45 days thereafter) |
Enforcement Focus
CSLR: What are CalPrivacy’s enforcement priorities or themes?
Kemp: Look at all CCPA enforcement actions by us and the AG, the advisories and the sweeps to understand our priorities. We won’t reveal current activities, but we have over 100 active investigations. The AG’s office also enforces the CCPA. The recent Disney matter shows they have their own priorities.
We try to be transparent in several ways. First, enforcement advisories signal what we care about. We have issued three so far. Second, we partner on sweeps with other enforcers. We’re doing an investigative sweep with the California, Connecticut and Colorado AGs on support for the Global Privacy Control, and with about 30 privacy agencies worldwide on children’s data. Third, our settlement agreements detail where companies [like Honda, Healthline, Todd Snyder and Tractor Supply] fell short, so others can learn.
A clear pattern we’ve seen is businesses creating too much friction for consumers trying to exercise their privacy rights. One entity demanded a driver’s license photo next to the consumer’s face to do a simple opt-out of sale or sharing. That excessiveness is something we care about and could be the basis for future enforcement.
[See “Healthline’s Record-Setting CCPA Settlement Offers Lessons on Transparency and Opt-Outs” (Aug. 6, 2025).]
CSLR: What emerging privacy harms has CalPrivacy seen that companies should be watching for?
Kemp: One focus is, and will remain, protecting the vulnerable members of our community. Seniors experience lots of identity theft and fraud. We are addressing that via public affairs, with senior Scam Stoppers events with sister agencies, as well as enforcement. What happens with kids’ data, and how it is used, is another clear and significant harm.
CSLR: What can the business community do to help raise awareness of these problems?
Kemp: Clearly businesses have a mutual interest in reducing financial fraud and identity theft, along with the civil society groups like AARP, which are doing great work. We would welcome focus from the business community on reducing the likelihood that their older customers are defrauded. It would be beneficial for companies to do more to teach people how to protect themselves from a cybersecurity and from a privacy perspective. It’s also in the best interest of customers for businesses to do cybersecurity audits.
[See “CPPA’s Tractor Supply Decision Offers Lessons As Enforcement Focus Moves From Education to Deterrence” (Oct. 22, 2025).]
CSLR: Are new technologies changing your expectations for businesses?
Kemp: Our message is that whatever the technology, if it uses personal information, the same laws apply. In the past, personal data was maybe bought and sold for direct mail, then for websites and mobile apps, and now PI is used by AI and in ADMT to make predictions and decisions. Consumers keep the same rights to know, access, delete, etc., no matter the technology. They don’t lose that because we have a data-driven economy running on personal information. California voters created our agency alongside the AG to ensure those rights are protected.
Four New Regulations Planned
CSLR: The board has approved new rulemaking. What’s included and how can businesses engage?
Kemp: There are four areas: (1) employee data; (2) streamlining privacy policies and disclosures; (3) opt‑out preference signals/Global Privacy Control; and (4) reducing friction in exercising privacy rights. At our February 26 board meeting, we laid out the timeline to solicit public input and will issue requests for information and requests for comments. Processing those comments will take a few months before a draft is prepared for board consideration and formal notice‑and‑comment under the Administrative Procedures Act. We want feedback from civil society, everyday Californians and the business community.
CSLR: What specific business input would be most helpful in each area?
Kemp: We will provide guidance in our announcements regarding the requests for public comment.
|
Anticipated Timeline for Public Comment on Proposed Regulations |
|
|
Reducing Friction in Exercising Privacy Rights & Opt-out Preference Signals |
March 2026 |
|
Employee Data & Notices and Disclosures |
April 2026 |
|
Data Broker Audits |
Summer 2026 |
Source: CPPA Board Meeting, February 27, 2026
CCPA’s Two Enforcers
CSLR: How should companies think about CalPrivacy and the AG sharing enforcement authority?
Kemp: It’s common. At the federal level, for example, the SEC and DOJ can both be involved. Our relationship with the AG is excellent. We partner on joint actions, regularly compare notes and both participate in a multistate consortium of privacy regulators. We are the only non‑AG member.
[See “State Privacy Regulators Share Enforcement Agenda and How to Ensure a Smoother Investigation” (May 14, 2025).]
CSLR: Any closing thoughts for leadership teams?
Kemp: We’ve tried hard with our regulations to allow businesses to operationalize the obligations they have. For example, companies can leverage existing cybersecurity audits they have done. We’re publishing bulletins, and we have done and will continue to do our best to educate businesses about the regulations. The pace of our enforcement is increasing, as is the AG’s, so companies should respond to that. California has a long history of leading on consumer protection, from food and auto safety to data breach notification, the CCPA and the Delete Act.
We try to be innovative with our policy, to not only provide guardrails that protect consumers but also ensure that business innovation can continue to thrive. Since CCPA enforcement began, California’s economy has moved from the world’s fifth largest to the fourth. It is very possible to balance innovation and guardrails, which is what we’re trying to do here.
