Investigation and Adjudication Procedures
The CPPA follows a structured investigative and adjudicative process to enforce CCPA compliance. This section outlines the step-by-step procedures from initial investigation through final enforcement.
Step 1: Initiating an Investigation
[1798.199.45] Investigation Authority
├─ (a) Complaint or own-initiative investigations
│ Decision factors for non-investigation/cure period:
│ ├─ (1) Lack of intent to violate
│ └─ (2) Voluntary cure efforts pre-notification
└─ (b) Written notification to complainant
├─ (1) Action taken/planned with reasons
└─ (2) Excludes law enforcement exemptions
Upon the sworn complaint of any person or on its own initiative, the agency may investigate possible violations of this title relating to any business, service provider, contractor, or person.
The agency may decide not to investigate a complaint or decide to provide a business with a time period to cure the alleged violation. In making a decision not to investigate or provide more time to cure, the agency may consider the following:
- Lack of intent to violate this title
- Voluntary efforts undertaken by the business, service provider, contractor, or person to cure the alleged violation prior to being notified by the agency of the complaint
Complainant Notification: The agency shall notify in writing the person who made the complaint of the action, if any, the agency has taken or plans to take on the complaint, together with the reasons for that action or nonaction. The written notification shall not include information that is subject to law enforcement exemptions and privileges, including, but not limited to, confidential information related to an investigation and information that is privileged under the Evidence Code and the Government Code.
Step 2: Probable Cause Determination
[1798.199.50] Probable Cause Determination
├─ 30-day advance notice requirement
├─ Service methods: process or registered mail
├─ Summary of evidence provided
├─ Right to be present with counsel
├─ Notice timing: service date, mail signature, or return date
└─ Proceeding privacy: private unless violator requests public
No finding of probable cause to believe this title has been violated shall be made by the agency unless, at least 30 days prior to the agency's consideration of the alleged violation, the business, service provider, contractor, or person alleged to have violated this title is:
- Notified of the violation by service of process or registered mail with return receipt requested
- Provided with a summary of the evidence
- Informed of their right to be present in person and represented by counsel at any proceeding of the agency held for the purpose of considering whether probable cause exists for believing the person violated this title
Notice Timing: Notice to the alleged violator shall be deemed made on the date of service, the date the registered mail receipt is signed, or if the registered mail receipt is not signed, the date returned by the post office.
Proceeding Privacy: A proceeding held for the purpose of considering probable cause shall be private unless the alleged violator files with the agency a written request that the proceeding be public.
Step 3: Administrative Hearing
[1798.199.55] Hearing and Order
├─ (a) Hearing upon probable cause finding
│ Procedure: Administrative Procedure Act (Gov Code §11500+)
│ ├─ (1) Cease and desist order
│ └─ (2) Administrative fines (subject to 1798.155)
│ ├─ Base: $2,500/violation (CPI adjusted)
│ ├─ Intentional: $7,500/violation
│ ├─ Minor (<16): $7,500/violation
│ └─ Allocation: 95% CPPA subfund (b), 5% grant subfund (d)
│ Declaration if no violation found
└─ (b) Joint and several liability
When the agency determines there is probable cause for believing this title has been violated, it shall hold a hearing to determine if a violation has or violations have occurred. Notice shall be given and the hearing conducted in accordance with the Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code). The agency shall have all the powers granted by that chapter.
If a Violation is Found: If the agency determines on the basis of the hearing that a violation or violations have occurred, it shall issue an order that may require the violator to do all or any of the following:
- Cease and desist violation of this title
- Pay an administrative fine, subject to Section 1798.155:
- Up to $2,500 for each violation
- Up to $7,500 for each intentional violation
- Up to $7,500 for each violation involving the personal information of minor consumers
Fine Allocation:
- 95% of any administrative fine assessed is deposited into the Consumer Privacy Subfund created within the Consumer Privacy Fund pursuant to subdivision (b) of Section 1798.160
- 5% of any administrative fine assessed is deposited into the Consumer Privacy Grant Subfund created within the Consumer Privacy Fund pursuant to subdivision (d) of Section 1798.160
If No Violation is Found: When the agency determines that no violation has occurred, it shall publish a declaration so stating.
Joint and Several Liability: If two or more persons are responsible for any violation or violations, they shall be jointly and severally liable.
Step 4: Administrative Law Judge Review
[1798.199.60] ALJ Decision Review
└─ Rejection requires written reasons
Must state reasons in writing
Whenever the agency rejects the decision of an administrative law judge made pursuant to Section 11517 of the Government Code, the agency shall state the reasons in writing for rejecting the decision.
Investigative Powers
[1798.199.65] Subpoena Power
├─ Witness subpoenas
├─ Compel attendance/testimony
├─ Administer oaths/affirmations
├─ Take evidence
└─ Production of books, papers, records
Including compliance audit authority
The agency may:
- Subpoena witnesses, compel their attendance and testimony
- Administer oaths and affirmations
- Take evidence
- Require by subpoena the production of any books, papers, records, or other items material to the performance of the agency's duties or exercise of its powers, including, but not limited to, its power to audit a business' compliance with this title
Statute of Limitations
[1798.199.70] Statute of Limitations
├─ 5-year limitation from violation date
├─ (a) Commencement: probable cause notice service (1798.199.50)
├─ (b) Tolling: fraudulent concealment period
│ Definition: knowing concealment of material facts to defraud public
└─ (c) Tolling: subpoena compliance delay
From motion to compel filing to production date
No administrative action brought pursuant to this title alleging a violation of any of the provisions of this title shall be commenced more than five years after the date on which the violation occurred.
Commencement Date: The service of the probable cause hearing notice, as required by Section 1798.199.50, upon the person alleged to have violated this title shall constitute the commencement of the administrative action.
Tolling for Fraudulent Concealment: If the person alleged to have violated this title engages in the fraudulent concealment of the person's acts or identity, the five-year period shall be tolled for the period of the concealment. For purposes of this subdivision, "fraudulent concealment" means the person knows of material facts related to the person's duties under this title and knowingly conceals them in performing or omitting to perform those duties for the purpose of defrauding the public of information to which it is entitled under this title.
Tolling for Document Production Delay: If, upon being ordered by a superior court to produce any documents sought by a subpoena in any administrative proceeding under this title, the person alleged to have violated this title fails to produce documents in response to the order by the date ordered to comply therewith, the five-year period shall be tolled for the period of the delay from the date of filing of the motion to compel until the date the documents are produced.
Step 5: Collecting Unpaid Administrative Fines
If administrative fines remain unpaid after exhaustion of judicial review, the CPPA has two enforcement mechanisms:
Option A: Civil Action for Collection
[1798.199.75] Collection Action (Unpaid Fines)
├─ (a) Superior court judgment to collect
│ Venue: county where fines imposed
│ Jurisdiction: small claims, limited civil, unlimited civil
│ Required showings: (1) proper procedures, (2) notice,
│ (3) demand and nonpayment
└─ (b) 4-year limitation from imposition
In addition to any other available remedies, the agency may bring a civil action and obtain a judgment in superior court for the purpose of collecting any unpaid administrative fines imposed pursuant to this title after exhaustion of judicial review of the agency's action.
Venue and Jurisdiction: The action may be filed as a small claims, limited civil, or unlimited civil case depending on the jurisdictional amount. The venue for this action shall be in the county where the administrative fines were imposed by the agency.
Required Showings: In order to obtain a judgment in a proceeding under this section, the agency shall show, following the procedures and rules of evidence as applied in ordinary civil actions, all of the following:
- That the administrative fines were imposed following the procedures set forth in this title and implementing regulations
- That the defendant or defendants in the action were notified, by actual or constructive notice, of the imposition of the administrative fines
- That a demand for payment has been made by the agency and full payment has not been received
Statute of Limitations: A civil action brought pursuant to this provision shall be commenced within four years after the date on which the administrative fines were imposed.
Option B: Clerk of Court Judgment Entry
[1798.199.80] Clerk of Court Judgment Entry
├─ (a) After judicial review exhausted
├─ (b) Application to clerk: certified order + proof of service
├─ (c) Venue: county where fines imposed
├─ (d) Judgment enforcement: same as civil action
└─ (e) 4-year limitation from exhaustion
If the time for judicial review of a final agency order or decision has lapsed, or if all means of judicial review of the order or decision have been exhausted, the agency may apply to the clerk of the court for a judgment to collect the administrative fines imposed by the order or decision, or the order as modified in accordance with a decision on judicial review.
Application Process: The application, which shall include a certified copy of the order or decision, or the order as modified in accordance with a decision on judicial review, and proof of service of the order or decision, constitutes a sufficient showing to warrant issuance of the judgment to collect the administrative fines. The clerk of the court shall enter the judgment immediately in conformity with the application.
Venue: An application made pursuant to this section shall be made to the clerk of the superior court in the county where the administrative fines were imposed by the agency.
Judgment Enforcement: A judgment entered in accordance with this section has the same force and effect as, and is subject to all the provisions of law relating to, a judgment in a civil action and may be enforced in the same manner as any other judgment of the court in which it is entered.
Statute of Limitations: The agency may bring an application pursuant to this section only within four years after the date on which all means of judicial review of the order or decision have been exhausted.
Additional Remedy: The remedy available under this section is in addition to those available under any other law.
Step 6: Judicial Review
[1798.199.85] Judicial Review
└─ Abuse of discretion standard
Available to interested party
Any decision of the agency with respect to a complaint or administrative fine shall be subject to judicial review in an action brought by an interested party to the complaint or administrative fine and shall be subject to an abuse of discretion standard.
Attorney General Coordination
The CPPA's enforcement authority is coordinated with the Attorney General as follows:
Stay of Administrative Action: The agency shall, upon request by the Attorney General, stay an administrative action or investigation under this title to permit the Attorney General to proceed with an investigation or civil action and shall not pursue an administrative action or investigation, unless the Attorney General subsequently determines not to pursue an investigation or civil action. The agency may not limit the authority of the Attorney General to enforce this title.
Prevention of Duplicate Penalties: No civil action may be filed by the Attorney General under this section for any violation of this title after the agency has issued a decision pursuant to Section 1798.199.85 or an order pursuant to Section 1798.199.55 against that person for the same violation.
Preservation of Private Right of Action: This section shall not affect the private right of action provided for in Section 1798.150.
Good Faith Cooperation Consideration
[1798.199.100] Good Faith Cooperation
└─ Agency and courts must consider good faith cooperation
No double penalties for same violation
The agency and any court, as applicable, shall consider the good faith cooperation of the business, service provider, contractor, or other person in determining the amount of any administrative fine or civil penalty for a violation of this title.
Protection Against Double Penalties: A business shall not be required by the agency, a court, or otherwise to pay both an administrative fine and a civil penalty for the same violation.
Related Information: For details on penalty amounts and statutory damages, see Penalties and Damages. For an overview of the CPPA's structure, see CPPA Structure and Authority.