The California Consumer Privacy Act (CCPA) was signed into law in 2018, and it went into effect on January 1st, 2020.
The CCPA is the first-ever data privacy law in the United States that allows California residents to have more control over their personal data. It gives them the right to know what data businesses collect, how it is being used, and who it is being shared with.
In this blog post, we will discuss what CCPA Compliance means, who it applies to, and how it affects businesses.
Who does CCPA compliance apply to?
CCPA applies to operational businesses in California, regardless of their physical location, and meet one or more of the following requirements:
- They have an annual revenue of over 25 million dollars
- They buy, receive, or sell the personal information of over 50,000 California residents, households, or devices each year
- They derive 50% or more of their annual revenue from selling the personal information of California residents. Hence, any business that falls under these categories must comply with CCPA
Any business that falls under these categories must comply with CCPA.
What are the main CCPA compliance requirements?
One of the CCPA requirements is that businesses must maintain reasonable security procedures and practices to prevent data breaches. They must also provide California residents with the right to opt out of the sale of their personal information; this is commonly referred to as a Do Not Sell my personal information request. Read more about how the Global Privacy Control privacy settings can be used to initiate this request.
Businesses must limit the collection and use of personal information to what is necessary for the transaction for which it was collected, for example your social security number, financial account number, or account passwords. Therefore, it is crucial for businesses to implement robust data protection measures, privacy policies, and provide proper training on CCPA to their employees.
CCPA requires businesses in California to disclose the type of personal data they collect and how it is being used, including any third-party vendors that the data is shared with. California residents have the right to request that their personal data be deleted, as well as the right to access information regarding the personal data being collected about them. If the business does not comply with these requests within 30 days, they may face legal action and monetary penalties.
The CCPA has been compared to the General Data Protection Regulation (GDPR) that came into effect in the EU in May 2018. The GDPR and CCPA differ in certain aspects, such as the definition of personal data, the jurisdiction of companies, and the right to erasure. However, both the GDPR and CCPA aim to provide individuals with more control over their personal data.
Businesses must be CCPA compliant to avoid fines and legal action. The penalty for non-compliance can be up to $7500 per violation. Furthermore, businesses should also consider the potential damage to their brand reputation if they fail to comply with the CCPA requirements. Therefore, it is advisable for businesses to ensure that their practices and policies comply with CCPA.
How does CCPA impact businesses?
The CCPA is a groundbreaking law that marks a major step forward in giving California residents control over their personal data. It requires businesses to take proactive measures to safeguard personal information and be transparent about how it is being used. As businesses face mounting challenges in maintaining compliance, it is essential to keep up with the CCPA requirements as they may evolve over time. Businesses must prioritize privacy compliance to protect their brand reputation and remain competitive in the marketplace.
Something to be aware of: What is CPRA compliance?
CPRA stands for the California Privacy Rights Act, which is an extension and amendment to the California Consumer Privacy Act (CCPA). CPRA was passed as a ballot initiative in November 2020 and further strengthens consumer privacy rights and protections.
In relation to CCPA, CPRA introduces additional requirements and provisions that businesses need to comply with. The main purpose of CPRA is to enhance and expand privacy rights for California residents and to establish more stringent obligations for businesses handling personal information.
It’s important for businesses subject to CCPA compliance to be aware of the changes introduced by CPRA and ensure they meet the updated requirements. This may involve revisiting data management practices, implementing additional security measures, and reviewing privacy policies and procedures to align with the enhanced consumer rights and obligations outlined in CPRA.