Logo courtesy of California Privacy Protection Agency (CalPrivacy)

SACRAMENTO, CA (MPG) - Assemblymember Pilar Schiavo introduced AB 2021, sponsored by the California Privacy Protection Agency (CalPrivacy), to establish comprehensive whistleblower protections under the California Consumer Privacy Act (CCPA). The bill, known as the Whistleblower Protection and Privacy Act, supports whistleblowers in two key ways — by creating an award program to incentivize these individuals to speak up about potential violations and by establishing anti-retaliation provisions to protect them once they come forward.

"Companies are collecting and selling data about our children, family, friends, and neighbors every day. California’s privacy laws create strong protections on what companies can collect and sell, but illegal handling still happens,” said Assemblymember Schiavo. “CalPrivacy does everything it can to find and penalize bad actors, but the whistleblower protection and support AB 2021 provides will allow experts with insider knowledge to help CalPrivacy take action quickly to stop companies that harm us and our loved ones by unlawfully selling our private or sensitive data."   

Technology and data-driven companies often have complex business practices that are intentionally hidden from the public for competitive advantage. This lack of visibility can cloak wrongdoing and make it time-consuming for regulators to uncover potential violations. Whistleblowers are critical in exposing misconduct. However, coming forward is risky without legal protections. Whistleblowers can face job loss, isolation, and even lawsuits. 

“In our data-driven economy, where companies typically process personal information behind closed doors, privacy laws work best when insiders can report violations without fear,” said Tom Kemp, Executive Director of CalPrivacy. “All the privacy rules in the world mean little if the people who see violations can’t speak up without losing everything.”

AB 2021 supports whistleblowers by offering financial incentives to encourage these individuals to speak up and by protecting them from retaliation after coming forward. Similar to whistleblower laws in the financial services and anti-fraud contexts, the bill allows whistleblowers to share in a portion of an enforcement award and, at the agency’s discretion, permits their attorney to collaborate on the action. Additionally, like many other California laws, employers are prohibited from retaliating against whistleblowers when they report. Taken together, these provisions encourage and protect whistleblowers.

“Anti-retaliation alone does little to motivate whistleblowers to take the first step,” said Maureen Mahoney, CalPrivacy’s Deputy Director of Policy & Legislation. “We’re grateful to Assemblymember Schiavo for authoring this bill that provides real support to the brave individuals who come forward to protect the privacy of Californians.”

Whistleblower protections are one of the key elements recommended for technology laws in a report issued last year by the Joint California Policy Working Group on Frontier AI Models. CalPrivacy is proud to sponsor this important bill which seeks to implement that recommendation and increase transparency and accountability in California’s privacy law.