$345K Fine Against Clothing Retailer for CCPA Violations

The California Privacy Protection Agency (CPPA) is keeping up the pressure on businesses. Right on the heels of its recent settlement with Honda, the CPPA announced the conclusion of another case, this time against clothing retailer Todd Snyder, resulting in a fine of $345,000. 

It’s become clear that the Agency’s long period of apparent inaction on enforcement of the California Consumer Privacy Act (CCPA) was not inaction at all, but rather the initial calm as its first investigations were underway.

In what is becoming a common theme, Todd Snyder’s privacy violations were related to its handling of privacy requests, with particular attention paid to opt-outs. Here’s what we learned from the CPPA’s decision.

A Broken Cookie Banner

During the relevant time period, Todd Snyder’s website “shared” consumers’ personal information—that is, it used their data to engage in cross-context behavioral advertising. That's no big deal, but it does trigger opt-out rights under the CCPA. Knowing this, Todd Snyder offered an opt-out method via its cookie banner and also stated that it respected opt-outs via the Global Privacy Control (GPC) browser signal.

The problem? According to the CPPA, “the technical infrastructure told a different story.” For at least a 40-day period from the end of 2023 through the beginning of 2024, whenever a consumer tried to open up the cookie banner, it would appear and then immediately disappear. This obviously meant consumers could not opt-out via the banner, and GPC opt-outs were not functioning either.

This was because Todd Snyder’s third-party privacy-management tool “was not properly configured.” The Agency's decision emphasizes that the retailer was being held responsible for the technical failings of its consent manager:

Businesses should scrutinize their privacy management solutions to ensure they comply with the law and work as intended, because the buck stops with the businesses that use them.

The takeaway is that businesses should choose their privacy vendor wisely, and not expect to be able to point the finger elsewhere if their opt-outs don’t function properly.

Verifying Opt-Out Requests

Consumers who visited the Todd Snyder privacy policy were directed to a privacy portal to submit any requests, including opt-outs. The privacy portal used the same form for all request types, and required consumers to submit a photo of themselves holding an ID in order to verify their identity.

As should be abundantly clear by now, businesses cannot require identity verification for CCPA opt-outs. The CPPA released an enforcement advisory in 2024 to this effect, and it is one of the reasons that Honda was fined earlier this year.

Any third-party privacy portals that combine all request types into a single form are likely to get businesses into trouble. The requirements for an access or deletion request simply are not the same as for an opt-out or request to limit.

Requiring an ID Was Too Burdensome Anyway

Even for those privacy requests which require verification, businesses cannot require more information than is necessary to verify the consumer’s identity. The CPPA found that Todd Snyder’s requirement of submitting a photo of the consumer with their ID was a violation of that rule. 

The Agency provided the following reasons for its decision:

• Consumers could complete a purchase on the retailer’s website without ever producing a government ID.
• Government identity documents contain highly sensitive personal information, creating a risk for identity theft and financial fraud.
• The requirement discouraged consumers from submitting privacy requests.

Businesses must therefore navigate a fine line between getting enough information to verify someone’s identity and requiring too much information so that it creates other compliance problems. The appropriate level of verification will depend on the type of request and the sensitivity of the personal information at issue.

Get Compliance Right with TrueVault

Privacy compliance is trickier than many businesses realize, and what’s becoming clear is that regulators like the California Privacy Protection Agency aren’t giving companies a lot of leeway. Even unintentional mistakes can result in fines of hundreds of thousands of dollars.

That’s why it’s critical to stop putting off privacy compliance and to get it right the first time.

TrueVault helps businesses of all sizes get privacy-compliant quickly, even if they don’t have in-house expertise. Through a combination of guided workflows and automated tools, you can create your company’s data map, publish privacy notices, and be ready to receive privacy requests, all in as little as a few hours.

Contact our team to learn more.

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