Sephora settlement over data privacy violations settled for $1.2M

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Sephora data privacy settlement overview: 

• Who: Sephora has agreed to pay $1.2 million to resolve claims lobbied against it by the State of California. 
• Why: The Sephora settlement will resolve claims the company violated the California Consumer Privacy Act by allegedly selling the personal information of its customers to third-party companies without disclosing the sale or giving consumers a chance to opt out. 
• Where: The Sephora data privacy settlement was filed in the Superior Court for the State of California. 

Sephora has agreed to pay $1.2 million to resolve claims by the State of California that the company violated privacy law by failing to disclose that it was selling consumers’ personal information. 

The personal care and beauty product retailer had been accused by the state of violating the California Consumer Privacy Act (CCPA). 

In addition to paying $1.2 million, Sephora will be required to clarify its online disclosures and privacy policy to make it clear it sells consumer data and provide a mechanism to allow consumers to opt out of the sale of their personal info. 

Sephora also must confirm its service provider agreements in accordance with the CCPA and provide reports to California Attorney General Rob Bonta regarding its sale of personal info and attempts to honor privacy. 

“I hope today’s settlement sends a strong message to businesses that are still failing to comply with California’s consumer privacy law. My office is watching, and we will hold you accountable,” Bonta says in a statement. 

Sephora data privacy settlement result of third-party tracking claims 

Sephora had been accused of allowing third-party companies to monitor its customers and create digital profiles of them that could track things like what type of computer they were using, what they put in their online shopping carts and their exact location, among other things. 

Bonta’s office says that this agreement with the third-party companies constituted a sale of consumer information under rules laid out by the CCPA and thus required Sephora to disclose that sale to consumers and give them an opportunity to opt out. 

“It’s been more than two years since the CCPA went into effect, and businesses’ right to avoid liability by curing their CCPA violations after they are caught is expiring. There are no more excuses,” Bonta says. 

In related Sephora news, a consumer filed a class action lawsuit against Sephora last year over claims the company violated the CCPA by exchanging and judging customer information with a data analytics company called The Retail Equation. 

What do you think of the Sephora settlement?  Let us know in the comments! 

The Sephora data privacy lawsuit is People of the State of California v. Sephora USA, Inc., Case No. CGC-22-601380, in the Superior Court for the State of California. 

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