Regulatory Alert – July 20, 2021

President Biden Signs Executive Order Directing the FTC to Address Non-Compete Agreements

On July 9, 2021, President Biden issued a broad Executive Order directing federal regulatory agencies to take a variety of steps that, if completed and upheld by the courts, would affect a multitude of changes in the federal government’s regulation of businesses’ competitive practices. These directives include encouraging the Federal Trade Commission (the “FTC”) “to curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility.” The Order takes a narrow approach to this directive, rather than instituting an outright “ban” on non-competes; however, such a rule could still be subject to legal challenge. Given that many states already require non-compete agreements to be reasonable in their scope, it is unclear how a federal effort to curtail such agreements that “unfairly” limit worker mobility will change the legal landscape.

Colorado Governor Signs into Law the Colorado Privacy Act

Colorado has become the third state behind California and Virginia to pass its own Colorado Privacy Act (the “CPA” or “Act”), continuing the enactment of comprehensive US state consumer privacy legislation. The CPA will go into effect on July 1, 2023, and, similar to the models set out by its predecessors, will grant its residents the right to access, correct, and delete the personal data held by organizations subject to the law and give residents the right to opt-out of the processing of their personal data for purposes of targeted advertising, sale of their personal data, and profiling. The Act will apply to any legal entity that “conducts business in Colorado or produces or delivers commercial products or services that are intentionally targeted to residents of Colorado” and will also impose certain obligations on data processors. No private right action will be provided for within the Act, making it enforceable only by the Colorado Attorney General or state district attorneys. 

Proposed California Bill to Establish the Fair Debt Settlement Practices Act Set for Hearing on August 16, 2021

On July 14, 2021, proposed California Assembly Bill No. 1405 to establish the Fair Debt Settlement Practices Act was approved as amended by the Senate Committee on the Judiciary and re-referred to the Senate Appropriations Committee. The Bill is now set to be heard by the Senate Appropriations Committee on August 16, 2021, where it may undergo further amendment but must receive a majority vote to continue through the legislative process. If you wish to follow and read the entire text of the proposed legislation as amended, please click on the following link: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB1405.

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