Section § 1798.98

Explanation

This law explains how businesses should handle their customers' electricity or gas usage data. It defines key terms like 'business,' 'customer,' and 'data.' Businesses must get clear permission from customers before sharing their data with third parties, and they must clearly state how the data will be used. The businesses should also ensure any third party they share data with keeps it secure. They must use reasonable security measures to protect data from unauthorized access or misuse and must not offer discounts to access data without customer consent. When the data is no longer needed, businesses must properly dispose of it, making it unreadable. However, the rules do not apply to utility companies and specific business contracts covered by other laws.

(a)CA Civil Law Code § 1798.98(a) For the purposes of this title, the following definitions shall apply:
(1)CA Civil Law Code § 1798.98(a)(1) “Business” means a sole proprietorship, partnership, corporation, association, or other group, however organized and whether or not organized to operate at a profit, including a financial institution organized, chartered, or holding a license or authorization certificate under the law of this state, any other state, the United States, or of any other country, or the parent or the subsidiary of a financial institution.
(2)CA Civil Law Code § 1798.98(a)(2) “Customer” means a customer of an electrical or gas corporation or a local publicly owned electric utility that permits a business to have access to data in association with purchasing or leasing a product or obtaining a service from the business.
(3)CA Civil Law Code § 1798.98(a)(3) “Data” means a customer’s electrical or natural gas usage that is made available to the business as part of an advanced metering infrastructure provided by an electrical corporation, a gas corporation, or a local publicly owned electric utility, and includes the name, account number, or physical address of the customer.
(4)CA Civil Law Code § 1798.98(a)(4) “Electrical corporation” has the same meaning as in Section 218 of the Public Utilities Code.
(5)CA Civil Law Code § 1798.98(a)(5) “Gas corporation” has the same meaning as in Section 222 of the Public Utilities Code.
(6)CA Civil Law Code § 1798.98(a)(6) “Local publicly owned electric utility” has the same meaning as in Section 224.3 of the Public Utilities Code.
(b)CA Civil Law Code § 1798.98(b) Unless otherwise required or authorized by federal or state law, a business shall not share, disclose, or otherwise make accessible to any third party a customer’s data without obtaining the express consent of the customer and conspicuously disclosing to whom the disclosure will be made and how the data will be used.
(c)CA Civil Law Code § 1798.98(c) A business that discloses data, with the express consent of the customer, pursuant to a contract with a nonaffiliated third party, shall require by contract that the third party implement and maintain reasonable security procedures and practices appropriate to the nature of the information, to protect the data from unauthorized access, destruction, use, modification, or disclosure.
(d)CA Civil Law Code § 1798.98(d) A business shall implement and maintain reasonable security procedures and practices appropriate to the nature of the information to protect the data from unauthorized access, destruction, use, modification, or disclosure.
(e)CA Civil Law Code § 1798.98(e) A business shall not provide an incentive or discount to the customer for accessing the data without the prior consent of the customer.
(f)CA Civil Law Code § 1798.98(f) A business shall take all reasonable steps to dispose, or arrange for the disposal, of customer data within its custody or control when the records are no longer to be retained by the business by (1) shredding, (2) erasing, or (3) otherwise modifying the data in those records to make it unreadable or undecipherable through any means.
(g)CA Civil Law Code § 1798.98(g) The provisions of this section do not apply to an electrical corporation, a gas corporation, or a local publicly owned electric utility or a business that secures the data as a result of a contract with an electrical or gas corporation or a local publicly owned electric utility under the provisions of subdivision (f) of Section 8380 or subdivision (f) of 8381 of the Public Utilities Code.

Section § 1798.99

Explanation

If a customer’s data is accessed or used without permission, breaking another law (Section 1798.98), they can sue for damages up to $500 per intentional incident. Besides this, customers still keep all other legal rights and penalties they have under different laws. This law doesn't limit the Attorney General's power to enforce existing laws.

(a)CA Civil Law Code § 1798.99(a) A customer harmed by the release or unauthorized use of his or her customer data, in violation of Section 1798.98, may bring a civil action to recover actual damages in an amount not to exceed five hundred dollars ($500) for each willful violation.
(b)CA Civil Law Code § 1798.99(b) The rights, remedies, and penalties established by this title are in addition to the rights, remedies, or penalties established under any other law.
(c)CA Civil Law Code § 1798.99(c) Nothing in this title shall abrogate any authority of the Attorney General to enforce existing law.