CPPA Enforcements: When Privacy Tech Isn't Enough

What if you bought an expensive security system for your home, only to realize you forgot to turn it on? That's essentially what happened to clothing retailer Todd Snyder – except instead of a burglary, they got hit with a $345,178 fine from the California Privacy Protection Agency (CPPA).

Our take is that it’s not about the monetary amount of the enforcement. 

The enforcement action, announced last week, serves as a stark reminder that having privacy technology in place isn't the same as having it working correctly. For businesses investing hard to come by budget in consent management platforms and privacy tools, this case delivers a wake-up call that the CPPA explicitly stated: "Using a consent management platform doesn't get you off the hook for compliance."

The Todd Snyder Case: A Technology Implementation Failure

On the surface, Todd Snyder seemed to have the right privacy practices in place. They had a privacy portal allowing for consumers to initiate their rights requests. They had mechanisms for processing opt-out requests. They had verification processes. Yet the CPPA's enforcement division found multiple critical failures:

• A failure to process consumer requests to opt out of the sale or sharing of personal information for 40 days due to improper configuration of their privacy portal's technical infrastructure

• Excessive data collection from consumers attempting to exercise their privacy rights

• Improper verification requirements for non-verifiable requests like opting out of sale/sharing

Sound familiar? These aren't failures of not having technology – they're failures of implementation, governance, and ongoing management. As Michael Macko, head of the CPPA's Enforcement Division, bluntly put it: "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."

A Pattern Emerges: Echoing the Honda Enforcement

If this all sounds familiar, it should. The Todd Snyder settlement bears striking similarities to the recent Honda case, where the automaker faced a $632,500 enforcement action for almost identical issues:

• Both companies required excessive verification for non-verifiable requests

• Both had technical configurations that failed to properly process opt-out requests

• Both demonstrated gaps between having privacy technology and having it properly implemented

This emerging pattern suggests the CPPA is systematically targeting an enforcement blind spot: the critical gap between privacy technology acquisition and effective implementation.

Beyond the "Deploy and Forget" Mindset

For years, many businesses have approached privacy technology with a "check-the-box" mentality. Purchase a consent management platform, deploy it on your website, and consider compliance handled. The Todd Snyder case definitively shatters this mindset.

Privacy technology requires:

• Regular testing and validation

• Continuous monitoring

• Clear governance processes

• Periodic configuration audits

• Staff training on usage and implementation

This is particularly critical as platforms update to accommodate new regulations, new features roll out, and internal systems change. What worked correctly yesterday might fail tomorrow if not properly maintained.

Three Critical Implementation Failures to Avoid

Looking closer at the Todd Snyder case, we can identify three specific implementation errors that every privacy program should guard against:

1. Verification Overreach

The CPPA has repeatedly emphasized that certain privacy rights – particularly opt-outs – should not require verification. Yet many organizations configure their privacy portals to require identical verification for all request types. This not only violates regulations but creates unnecessary friction for consumers.

2. Technical Infrastructure Oversight

Todd Snyder's failure to process opt-out requests for 40 days represents a fundamental monitoring gap. Privacy technology needs to be treated like any mission-critical system – with monitoring, alerting, and regular validation checks to ensure it's functioning as intended.

3. Excessive Data Collection

Many privacy portals are configured to collect far more consumer information than necessary to fulfill privacy requests. This violates data minimization principles and creates additional compliance risks.

Moving From Technology to Governance

The challenge isn’t the technology. The privacy marketing has many great tech solutions. The challenge is governance and validation when it comes to executing privacy process using the 

As privacy regulations continue to evolve across jurisdictions, the lesson from the Todd Snyder case is clear: privacy technology alone isn't enough. What's needed is a comprehensive governance approach that bridges the gap between technology acquisition and operational effectiveness.

This means asking yourself/taking the initiative the following questions:

• Creating clear ownership and oversight of privacy technology implementation 

• Who is this resource? 

• What’s their background? 

• Is there a knowledge gap? 

• What is the enablement process?

• Is there ongoing training to stay up to date on the tech?

• Developing testing protocols to validate functionality on a regular basis 

• What is the testing procedure? 

• Against what scenarios are you testing? 

• Implementing monitoring to detect processing failures

• For automated use cases?

• Error handling? 

• Integrations?

• Aligning collection practices with data minimization principles 

• Governance for legal sign-off on design? 

• Training staff on both the letter and spirit of privacy requirements 

• Who leads this?

• What’s the frequency? Quarterly? Annual?

Privacy Technology + Governance = Business Enabler

FLLR Consulting specializes in bridging the critical gap between privacy technology acquisition and effective implementation. Our team of experts focuses on configuration validation, processing verification, and ongoing governance to ensure your privacy investments deliver their intended compliance outcomes. 

We've helped organizations across industries transform their privacy technology from potential liability into strategic advantage through proven implementation methodologies. Contact FLLR today to learn more about how your organization can get the most out of their privacy tech.