CALIFORNIA PREVAILS IN LANDMARK PRIVACY ENFORCEMENT ACTION
April 28, 2025
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On March 12, 2025, American Honda Motor Co. (“Honda”) reached a settlement with the California Privacy Protection Agency (“CPPA”) following claims that Honda, among other alleged conduct, required consumers to provide excessive personal information when verifying their identity. The CCPA allows consumers to opt out of transactions or sharing of their personal data without undergoing an identity verification process, yet Honda’s system allegedly obstructed consumers attempting to exercise this right. Moreover, the CCPA contended that the process to opt-out of sharing through Honda’s cookie management tool required more steps than to opt back in. In any event, Honda agreed to pay $632,500 to settle the enforcement action. Aside from the financial penalty, the settlement also requires Honda to implement robust compliance measures and make specific technical improvements to its privacy systems. As regulators, especially those at the state level, undertake enforcement actions to uphold privacy laws, companies handling consumer data must ensure that consumers can exercise their privacy rights without unnecessary hurdles. Air carriers must pay particular attention to privacy compliance given the fact that most operate across a patchwork of privacy regimes at the state, federal, and international levels.
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