Penalty Amount
$10,000,000
Premera Blue Cross suffered a data breach in 2014 that exposed personal and medical information of 10.5 million consumers. As part of a multistate settlement, Premera agreed to pay $10 million in civil penalties and implement security improvements and a compliance program. California will receive over $1 million from the settlement.
Premera must pay $10 million in civil penalties and implement reasonable security measures to protect consumer data, including maintaining a compliance program.
In-house legal teams should review all agreements involving protected health information (PHI), such as business associate agreements with vendors, customer contracts with health plan members, and employee confidentiality agreements. Key clauses to scrutinize include HIPAA compliance obligations, data breach notification timelines and procedures, encryption and access control standards, audit rights for security assessments, and indemnification provisions for data breaches. Given the $10 million settlement for inadequate security, contracts may need amendments to mandate specific security improvements, regular risk assessments, enhanced compliance monitoring, and clear accountability for PHI protection to align with HIPAA and prevent future breaches.
Entity
Premera Blue Cross
Also known as: Premera
Industry
InsuranceOfficial Press Release
Premera final complaint
https://oag.ca.gov/system/files/attachments/press-docs/Premera%20-%20final%20complaint.pdf
Premera Proposed Judgment.pdf
https://oag.ca.gov/system/files/attachments/press-docs/Premera%20-%20Proposed%20Judgment.pdf.pdf
California Attorney General Enforcement Page
https://oag.ca.gov/privacy/privacy-enforcement-actions
A coalition of 12 state attorneys general, led by Colorado AG Phil Weiser, obtained a temporary restraining order from a federal court in California to halt the proposed $110 billion merger of Warner Bros. Discovery, Inc. by Paramount Skydance Corporation. The lawsuit alleges the merger violates Section 7 of the Clayton Act by substantially lessening competition in film distribution, anticipated blockbuster film distribution, and licensing cable TV channels.
The California Privacy Protection Agency (CalPrivacy) joined a coalition of 18 Attorneys General and state agencies in opposing the proposed SECURE Data Act, a federal privacy bill that would preempt stronger state privacy laws like the CCPA. The coalition argues the bill would weaken consumer privacy protections, limit enforcement remedies, and undermine California's Delete Request and Opt-out Platform (DROP).
$12.8M
California Attorney General Rob Bonta, along with multiple district attorneys and the California Privacy Protection Agency, announced a $12.75 million settlement with General Motors for illegally selling hundreds of thousands of Californians' location and driving data to data brokers Verisk and LexisNexis without notice or consent. The settlement includes the largest CCPA penalty to date, a five-year ban on selling driving data to consumer reporting agencies, and requirements to delete retained data and implement a robust privacy program.
The California Privacy Protection Agency Board voted to support two bills (AB 1542 and SB 1106) and took a 'support if amended' position on a third bill (AB 883). These bills aim to strengthen privacy protections by expanding sensitive data protections, improving deletion rights under the Delete Act, and providing expedited deletion for elected officials and judges.
The California Privacy Protection Agency sent a letter to Congress opposing the SECURE Data Act, a federal bill that would preempt state privacy laws like the CCPA and Delete Act. The letter argues the bill would eliminate rights for 40 million Californians, including the DROP platform and opt-out preference signal requirements, and urges Congress to set a floor rather than a ceiling on privacy protections.
California Attorney General Rob Bonta, joined by attorneys general from seven other states, filed a lawsuit to block the $6.2 billion merger between Nexstar Media Group and Tegna Inc. The lawsuit alleges the merger violates Section 7 of the Clayton Act by reducing competition in local TV markets, leading to higher prices, less local news, and job losses.