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 bipartisan coalition of 33 state attorneys general, led by Minnesota AG Keith Ellison, began trial against Meta Platforms, Inc., alleging the company knowingly designed and deployed harmful features on Facebook and Instagram that drive children and teens to use the platforms compulsively, while falsely assuring parents and the public that its platforms were safe for young users. The states also allege Meta illegally collected personal information from children under 13 without parental consent, violating COPPA. The trial opened before Judge Yvonne Gonzalez Rogers in the U.S. District Court for the Northern District of California, with the states seeking monetary penalties and injunctive relief.
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).
A bipartisan coalition of state attorneys general began trial against Meta Platforms, Inc., alleging the company knowingly designed addictive features on Facebook and Instagram that harm children and teens, deceived parents about platform safety, and illegally collected personal information from children under 13 without parental consent in violation of COPPA. The states seek monetary penalties, an injunction to stop unlawful practices, and other relief. The trial is being litigated in the U.S. District Court for the Northern District of California.
$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.