DoorDash, a popular food delivery service, has reached a $375,000 settlement for allegedly violating California’s Consumer Privacy Act (CCPA) and Online Privacy Protection Act (CalOPPA). Recently, the state of California made headlines for this development.

Selling Personal Information: A Violation of Privacy Laws

The complaint filed says DoorDash violated the privacy rights of its California customers by selling their personal information without giving them proper notice or an option to opt-out. This act is against the CCPA and CalOPPA. Concerns over Californians’ privacy and data protection rights prompted the legal action.

Unveiling the Marketing Cooperatives

The complaint states that DoorDash participated in two marketing cooperatives where businesses shared their customers’ personal information for targeted advertising.

These businesses would agree to share their customer’s information and, in exchange, have their products advertised to other businesses’ customers. However, this practice did not provide adequate disclosure or obtain customer consent, infringing their privacy rights. As a result, this violated privacy laws in California.

DoorDash Complaint

The Impact on Consumer Privacy

The marketing cooperatives worked together to study their shared data. They created targeted advertisements to reach potential new customers for the participating businesses. However, DoorDash did not clearly state in its privacy policy that it shared personally identifiable information, including customers’ home addresses, with these marketing cooperatives. This further put consumer privacy at risk.

California Settles DoorDash Privacy Suit for $375,000

DoorDash has been held accountable for its actions. As part of the settlement, DoorDash must pay a civil penalty of $375,000 to the Attorney General under Section 1798.199.90 of the Civil Code. This outcome emphasizes the importance of respecting privacy laws and the consequences of not doing so.

DoorDash Stip Judgment

Sephora was also recently involved in a case with the state of California over data privacy concerns. Sephora and California reached a settlement of $1.2 million. The case centered on Sephora’s failure to disclose to consumers that the company was selling consumers’ personal information.

DoorDash Stip Judgment 2

This settlement reminds us how important it is to protect our personal information. Companies must handle our data carefully. This is crucial, especially in a world where it is increasingly valuable and vulnerable. We should all consider what happens to our data and how businesses may use it.

How can we, as consumers, advocate for stronger privacy protections in the digital age, and what role should businesses play in ensuring the privacy and security of our data?

[Article Note: This piece was originally published on NewsBreak and has been archived and transferred to DOPE Quick Reads to preserve its informational value. Original publication date: 2024-02-28]