California is the first state to introduce data privacy protection regulations on par with the EU’s General Data Protection Regulation (GDPR). As one of the first pieces of digital consumer data privacy legislation in the country, the California Consumer Privacy Act (CCPA) provides strong individual rights and protections around data access and collection. Read on to learn more about what CCPA entails and how to achieve compliance in a step-by-step fashion.

When Does the Legislation Go Into Effect?

The CCPA law is designed to protect the data privacy rights of citizens living in California. It forces companies to provide additional information to consumers around how their data is being collected, stored, and used. The goal is to give consumers more transparency and control over their private data.

Citizens will now have more visibility into whether or not their data is being shared with — or sold to — third parties. The CCPA also empowers consumers with the right to opt-out of any data usage or activities they disapprove of. The CCPA was originally approved by Governor Jerry Brown in June of 2018 and took effect on schedule on January 1st of 2020.

Who Does the CCPA Affect?

The CCPA covers business — defined as a for-profit legal entity — that collects and sells the personal information of consumers. Per CCPA, the regulation applies to businesses that meet any one of the following criteria:

  • Has an annual gross revenue of over $25 million
  • Gathers, buys, sells, or receives the personal information of over 50,000 California residents, households, or devices
  • Derives more than 50% of annual revenue from selling the personal information of California residents

Moreover, California lawmakers included language to exempt businesses that are already subject to robust federal data protection regulations. These types of companies include:

  • Health providers and insurers already subject to HIPAA
  • Banks and financial companies covered by Gramm-Leach-Bliley
  • Credit reporting agencies, such as Equifax and TransUnion, that are under the Fair Credit Reporting Act

Why do we have the California Consumer Privacy Act?

While companies previously were forced to take steps to safeguard customer data, entities weren’t held responsible for what they did with it and with whom they shared information. With consumers now able to have greater visibility into how their data is being used — and the ability to control and access that data — the CCPA represents a giant step forward in personal data privacy.

With CCPA, legislators wanted to leave no doubt that personal data belonged strictly to the consumer. The types of data where consumers now have control over the collection, usage, and sharing of include:

  • Credit and debit card numbers
  • Legal names
  • Postal addresses
  • Social security numbers
  • Demographic information
  • Income and financial data
  • Browsing and search history
  • Age and date of birth
  • Political and religious affiliation
  • Education information
  • Unique online account names
  • Drivers license and passport
  • Geolocation and biometric data
  • Any other uniquely identifiable information

What are the CCPA Requirements?

The CCPA outlines specific requirements for companies that correlate with consumer rights over their personal data. These core requirements are as follows:

  • Right to Disclosure. If you collect information about a consumer protected by the CCPA, then you must inform the consumer of your intentions at or before the point of data collection.
  • Right to Access. Consumers have the right to request you provide them with the information in a readily usable format. This must be free of charge and provided within 45 days from the request. Individuals must also have clear and easy access to your full privacy policy.
  • Right to Contact Information. You’re required to inform consumers where they can find more information about your privacy policy and CCPA compliance efforts. You also need to provide a toll-free telephone number and online contact details should they decide to contact you to exercise any CCPA-related rights.
  • Right to be Forgotten. If a consumer requests that you delete any personal data and information, you’re legally mandated to do so under the CCPA. There are very narrow exceptions in cases where you need the information to fulfill some form of superseding legal obligation.
  • Opt-out of Data Sales and Marketing. If you do sell visitors’ personal information, you must give consumers the opportunity to opt-out of this transaction. You’re required to have a web page that clearly presents an opt-out option, preferably with a link to your privacy policy page. They must also be able to opt-out of data usage for future marketing efforts.
  • Right to Fair Treatment. In no way, shape, or form can you discriminate or treat users differently based on whether or not they exercise their CCPA rights. You must provide the same level of access and service to all consumers regardless of which rights they exercise.
  • Periodic Privacy Policy Updates. You must update your privacy policy every 12 months. That way, customers know if you’re now collecting, selling, processing, or otherwise handling data differently than before. Or if you’re gathering more information than previously stated.

These requirements represent the basis of successful CCPA compliance. Now, you’re ready to put this knowledge into action by learning exactly how to begin your CCPA compliance journey.

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1 Comment

ouser1 · March 12, 2023 at 11:47 pm

This is similar to GDPR.

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