California Targets Tractor Supply's Tricky Tracking

The California Privacy Protection Agency (CPPA) issued a record fine earlier this month to Tractor Supply, the country’s self-proclaimed largest “rural lifestyle” retailer, for apparently ducking its responsibilities under the California Consumer Privacy Act. Under that law, companies are required to respect California customers’ and job applicants’ rights to know, delete, and correct information that businesses collect about them, and to opt-out of some types of sharing and use. The law also requires companies to give notice of these rights, along with other information, to customers, job applicants, and others. The CPPA said that Tractor Supply failed several of these requirements. This is the first time the agency has enforced this data privacy law to protect job applicants. Perhaps best of all, the company’s practices came to light all thanks to a consumer complaint filed with the agency.

Your complaints matter—so keep speaking up. 

Tractor Supply, which has 2,500 stores in 49 states, will pay for their actions to the tune of $1,350,000—the largest fine the agency has issued to date. Specifically, the agency said, Tractor Supply violated the law by:

• Failing to maintain a privacy policy that notified consumers of their rights;
• Failing to notify California job applicants of their privacy rights and how to exercise them;
• Failing to provide consumers with an effective mechanism to opt-out of the selling and sharing of their personal information, including through opt-out preference signals such as Global Privacy Control; and
• Disclosing personal information to other companies without entering into contracts that contain privacy protections.

In addition to the fine, the company also must take an inventory of its digital properties and tracking technologies and will have to certify its compliance with the California privacy law for the next four years.

It may surprise people to see that the agency’s most aggressive fine isn’t levied on a large technology company, data broker, or advertising company. But this case merely highlights what anyone who uses the internet knows: practically every company is tracking your online behavior. 

The agency may be trying to make exactly this point by zeroing in on Tractor Supply. In its press release on the fine, the agency’s top enforcer was clear that they’ll be casting a wide net. 

 “We will continue to look broadly across industries to identify violations of California’s privacy law,” said Michael Macko, the Agency’s head of enforcement. “We made it an enforcement priority to investigate whether businesses are properly implementing privacy rights, and this action underscores our ongoing commitment to doing that for consumers and job applicants alike.”

It is encouraging to see the agency stand up for Californians’ rights. For years, we have said privacy laws are only as strong as their enforcement. Ideally we’d like to see privacy laws—including California’s—include a private right to action to let anyone sue for privacy violations, in addition to enforcement actions like this one from regulators. Since individuals can’t stand up for the majority of their own privacy rights in California, however, it’s even more important that regulators such as the CPPA are active, strategic, and bold. 

It also highlights why it’s important for people like you to submit complaints to regulators. As the agency itself said, “The CPPA opened an investigation into Tractor Supply’s privacy practices after receiving a complaint from a consumer in Placerville, California.” Your complaints matter—so keep speaking up.