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Clients and legal teams appreciate Shelby’s passion for the law as it relates to protecting technology and company assets. She regularly monitors and researches fast-changing consumer privacy laws, with the understanding that critical strategy and success for any business includes oversight of data privacy policies and intellectual property portfolios.

Keypoint: The California Privacy Protection Agency settled its first non-data broker enforcement action with a $632,500 fine and other remedial measures.

On March 12, 2025, the California Privacy Protection Agency (Agency) announced its first non-data broker enforcement action requiring a vehicle manufacturer to pay an administrative fine of $632,500 in connection with the Agency’s review of connected vehicle manufacturers and related technologies’ privacy practices. The manufacturer also agreed to implement certain remedial actions.

In the below post, we provide an overview of the alleged violations and the penalties.

Keypoint: The FTC finalizes changes to bolster COPPA Rule, the first updates to the Rule since 2013.

The Federal Trade Commission (“FTC”) finalized changes to the Children’s Online Privacy Protection Act (“COPPA”) Rule today, making the first updates to the Rule since 2013. In January 2024, the FTC proposed changes to the COPPA Rule and those changes went through a year-long rulemaking process. The changes set new requirements around the collection, use, and disclosure of children’s personal information and provide parents with new tools and protections.

In the below post, we provide background on the COPPA Rule and a summary of the finalized changes, which will go into effect 60 days after publication in the Federal Register and require compliance one year from publication.

Keypoint: The Texas Attorney General reaches a first-of-its-kind settlement with a healthcare company that provides generative AI products. 

On September 18, 2024, the Texas Attorney General announced that it had reached a settlement with a Dallas-based artificial intelligence healthcare company. The Attorney General’s press release represents that it is a first-of-its-kind settlement, resolving allegations that the company deployed its artificial intelligence (“AI”) products at Texas hospitals while making false and misleading statements about the safety of its products. 

Keypoint: The appellate court ruled that the California Age-Appropriate Design Code Act’s impact assessment provision is unconstitutional and remanded the case back to the trial court to consider the constitutionality of the other challenged provisions.

On August 16, the Ninth Circuit Court of Appeals issued an opinion in NetChoice v. Bonta on the constitutionality of California’s Age-Appropriate Design Code Act (AADC). The appellate court affirmed the district court’s decision in part and vacated it in part. The appellate court affirmed the district court’s ruling that NetChoice was likely to succeed in showing that the AADC’s data protection impact assessment requirement violates the First Amendment. Based on that ruling, the appellate court affirmed the district court’s decision to enjoin enforcement of that requirement. The appellate court vacated the remainder of the district court’s ruling, determining that it is unclear from the record whether the remaining provisions of the AADC challenged by NetChoice violate the First Amendment. The appellate court remanded the case to the district court to consider the constitutionality of those provisions and whether the law’s unconstitutional provisions are severable from the remainder of the law.

In the below article, we provide an overview and analysis of the Ninth Circuit’s ruling.

Keypoint: Companies onboarding AI products and services need to understand the potential risks associated with these products and implement contractual provisions to manage them.

With the rapid emergence of artificial intelligence (AI) products and services, companies using these products and services need to negotiate contractual provisions that adequately address the unique issues they present. However, given that this area is new and rapidly emerging, companies may not appreciate that the use of AI may raise unique contractual issues. Even if companies do realize it, they may not know what those provisions should state. In addition, many AI-related contractual terms are complicated and confusing, oftentimes containing new terms and definitions that companies are unfamiliar with handling. 

In the below article, we identify key considerations when reviewing or preparing AI-related contracts. Although there may be other considerations depending on the specific use case, the below considerations should provide the reader with a useful starting point for how to address this issue.

Keypoint: Assuming the bills become law and go into effect, operators of websites and online services that collect the personal data of minors and are subject to the bills will need to undertake several compliance activities.

On June 7, 2024, the New York legislature passed two bills directed at kids’ use of online technologies –

Keypoint: If signed into law, Colorado companies that process children’s data will have new requirements beginning on October 1, 2025.  

Prior to the legislature closing on May 8, Colorado lawmakers passed SB 41, which amends the Colorado Privacy Act (CPA) to add protections for children’s data privacy. If signed into law by Colorado Governor Jared Polis, it will go into effect on October 1, 2025. The bill creates new obligations for entities that offer any online service, product, or feature to minors (under 18). The bill is modeled on Connecticut’s SB 3 signed into law last June.

In the below article, we provide an overview of the obligations under SB 41 and the key differences between SB 41 and Connecticut’s SB 3.

Keypoint: If signed into law, Colorado will become the first state to enact legislation regulating the use of high-risk artificial intelligence systems.

On May 8, the Colorado legislature passed the Colorado Artificial Intelligence Act (SB 205). If signed by Governor Jared Polis, Colorado will become the first state to enact legislation that broadly addresses the use of artificial intelligence, in particular the use of artificial intelligence in high-risk activities. The bill is co-sponsored by Senate Majority Leader Robert Rodriguez and House Representatives Manny Rutinel and Brianna Titone.

In the below article, we first provide context and background on the bill. We then provide a summary of the bill’s provisions.

Keypoint: The Utah legislature repealed and replaced the Utah Social Media Act in response to a lawsuit challenging the law on constitutional grounds.

Prior to closing in early March, the Utah legislature passed two bills (SB 194 and HB 464) that repeal and replace the Utah Social Media Regulation Act, which the legislature passed just last year. The bills are the second part of a legislative process in which Utah lawmakers amended the Act in response to a lawsuit filed by an Internet trade association challenging the Act on constitutional grounds. The Utah legislature previously pushed back the Act’s effective date to delay the legal challenge while lawmakers worked to revise the Act. In the below article, we provide a brief background on the Act and then discuss the changes made by the two bills.

Keypoint: 2024 will again see numerous developments in children’s privacy law.

As the 2024 state legislative season begins, it’s clear that lawmakers are again focused on children’s privacy. For the past few years, lawmakers have introduced different children’s privacy models, on both the federal and state level. However, regulating this specific area of law has its own set of challenges. We are releasing our 2024 State Children’s Privacy Law Tracker, which identifies enacted legislation and states considering legislation. Bookmark the page and use it as a resource.

For an update on children’s state privacy law, see below where we outline recent developments, children’s privacy laws that go into effect in 2024, and proposed laws this legislative session.