Penalty Amount
$7,616,000
Wells Fargo Bank recorded consumer phone calls without providing timely notice as required by California law, violating privacy statutes. The settlement imposes a $7.616 million civil penalty, requires compliance with disclosure standards, and mandates an internal compliance program to protect consumer privacy.
Wells Fargo must pay $7.616 million in civil penalties, reimburse $384,000 in investigative costs, contribute $500,000 to consumer protection organizations, comply with California's recording disclosure laws by making clear and conspicuous notifications, and implement an internal compliance program to ensure ongoing adherence.
In-house legal teams should review customer service agreements, vendor contracts for call center or telemarketing services, employee handbooks, and data processing agreements for clauses related to telephone call recording, consumer consent, and privacy disclosures. Specifically, examine terms governing the recording of communications, requirements for providing timely notice to consumers before or during calls, and obligations to comply with California Penal Code §§ 632 and 632.7. Contracts may need amendments to include explicit consent mechanisms, standardized disclosure language, mandates for internal compliance programs with audit rights, and provisions for data retention and security of recorded calls. Ensure that third-party processors are bound by similar privacy safeguards through data processing addendums.
Entity
Wells Fargo Bank
Also known as: Wells Fargo
Industry
Financial ServicesOfficial Press Release
Court approved Wells Fargo Stip Judgment 3 28 16 0
https://oag.ca.gov/system/files/attachments/press_releases/Court%20approved%20Wells%20Fargo%20Stip%20Judgment%203_28_16_0.pdf
Wells Fargo Conformed Copy of Court Filing 2 22 16 0
https://oag.ca.gov/system/files/attachments/press_releases/Wells%20Fargo%20Conformed%20Copy%20of%20Court%20Filing%202_22_16_0.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
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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.