The California Privacy Protection Agency (CPPA) has delivered a clear warning to businesses by imposing a fine of $632,500 on American Honda Motor Co., Inc. for violating the California Consumer Privacy Act (CCPA). This marks one of the significant enforcement actions since the agency was granted full authority to impose fines. This case shows that privacy regulators are now taking action and penalizing companies that do not follow data protection laws. It highlights the importance of consumer privacy rights and reminds businesses that they need to take compliance seriously.

At PrivacyPillar, we help businesses stay ahead of these compliance challenges. If you collect, share, or process consumer data, this case is a must-read for you. Let’s break down what went wrong, what lessons businesses should learn, and how PrivacyPillar can help you stay compliant and avoid costly fines.

What Mistake Did Honda Make?

The CPPA investigated Honda’s privacy practices and found multiple violations of CCPA rules. These issues mainly revolved around how they handled consumer privacy requests and their privacy practices.

Made It Hard for Consumers to Opt-Out of Data Sharing:

Under CCPA, California residents have the right to opt out of the sale or sharing of their personal data. However, they created unnecessary hurdles, making the process difficult for consumers.

• Excessive Information Requirements: Consumers had to provide full name, address, email, and phone number to opt out, far more than, what is legally necessary.
• Unlawful Verification: CCPA does not require consumers to verify their identity for opt-out requests, yet they made consumers go through this step, which led to delays and denials.
• Consumer Impact: 119 consumers had to provide data which was not necessary for the request and 20 consumers had their opt-out requests rejected due to these unlawful practices.

Required Consumers to Confirm Authorized Agent Requests

Under CCPA, consumers can appoint an Authorized Agent (such as a lawyer or privacy service) to submit requests on their behalf.

• Violation: The company demanded direct confirmation from consumers even after an authorized agent submitted a request. This is not allowed under CCPA. This violates CCPA rules, which allow businesses to ask for proof of authorization but does not require direct confirmation from the consumer.
• Consumer Impact: 14 consumers faced extra hurdles when authorized agents tried to exercise their rights for them.

Asymmetry in Cookie Options

• Asymmetry in Choice: The cookie banner had an easy “Accept All” button but required multiple steps to opt out.
• Violation: CCPA requires that opting out must be as easy as opting in.
• Impact: Many users remained tracked simply because the process was inconvenient.

Shared Consumer Data Without Proper Contracts

They collected and shared consumer data with advertising technology companies but failed to have proper contracts in place.

• CCPA requires businesses to have contracts with any third parties they share data with to ensure consumer privacy is protected.
• Honda’s failure to do this put consumer data at risk.

The $632,500 Fine & Compliance Orders

To settle the case, Honda agreed to pay $632,500 and implement strict corrective measures. Here’s what they must now do:

• Simplify the Opt-Out Process: No more unnecessary information or verification.
• Fix the Authorized Agent Process: No direct consumer confirmation required  for non-verifiable requests.  
• Redesign the Cookie Banner: Add a “Reject All” button to match “Accept All.”
• Honor the Global Privacy Control (GPC): Recognize user opt-out signals.
• Update Contracts with Ad Vendors: Ensure legal compliance in data-sharing agreements.
• Provide Staff Training: Employees must be fully aware of CCPA requirements.
• Annual Compliance Reporting: Honda must now report its compliance efforts for the next 5 years.

What Can Businesses Learn?

This case is a wake-up call for businesses handling consumer data. Here are the key takeaways:

Make opt-out easy – Don’t ask for more information than necessary.

Authorized agent requests in case on non-verifiable requests – Businesses should allow authorized agents to submit requests with a signed authorization form, rather than requiring direct consumer confirmation in case of non-verifiable requests.

Ensure cookie banners are fair – No dark patterns. The best practice is to offer clear, symmetrical options such as ‘Accept All’ and ‘Reject All’ buttons on the first interaction.

Have proper contracts with third-party vendors – Protect consumer data legally. Make sure contracts explicitly outline data-sharing restrictions, vendor responsibilities, and compliance obligations under CCPA.

Train your team on CCPA compliance – Employees should know privacy laws. Conduct regular training sessions and provide clear internal guidelines on handling consumer privacy requests.

How PrivacyPillar Helps You Stay Compliant

At PrivacyPillar, we provide easy-to-use tools that help businesses meet privacy requirements seamlessly.

• Consent Management Platform (CMP) – Ensure cookie consent compliance and honor opt-outs with a simple and clear interface.
• Automated DSAR Handling – Make data subject access requests (DSARs) smooth, automated, and legally compliant.
• Global Privacy Control (GPC) Integration – We help businesses honor GPC opt-outs automatically.

This case proves that privacy laws are being enforced and businesses cannot afford to ignore compliance. At PrivacyPillar, we make privacy compliance easy so that you can focus on growing your business without legal risks.

Ready to protect your business from fines? Let’s talk!
Contact us today to learn how PrivacyPillar can help you stay compliant and avoid costly penalties.