Instructions on the California Consumer Privacy Act (CCPA): Its Stipulations, Subtleties, and Adherence
In 2020, the California Consumer Privacy Act (CCPA) was enacted as a new data protection law in California, aiming to safeguard the privacy rights of Californians. Here are the main points businesses must follow to comply with the CCPA:
1. **Applicability Criteria** Businesses must comply if they meet any of the following conditions: - Have annual gross revenue over $25 million, - Buy, receive, sell, or share personal information of at least 50,000 California residents, households, or devices annually, - Derive 50% or more of their annual revenue from selling California residents' personal data.
2. **Notices to Consumers** - **Notice at Collection**: At or before collecting personal information, businesses must provide a notice listing the categories of personal data collected, the purposes for use, whether data is sold/shared, and retention periods. If data is sold or shared, businesses must include a clear link labeled “Do Not Sell Or Share My Personal Information” to enable consumers to opt-out. - **Privacy Policy**: Must be publicly accessible (typically on the business website) and describe consumers’ rights, categories of data collected/sold/shared in the past 12 months, data sources, business purposes for collection/sale/sharing, and third parties receiving the data.
3. **Consumer Rights and Mechanisms** - Consumers have the **right to know** what personal data is collected and how it is used. - **Right to delete** their personal information held by the business. - **Right to opt out** of the sale or sharing of personal information. - **Right to non-discrimination** for exercising these rights. Businesses must implement processes to allow consumers to exercise these rights and respond to verifiable requests within 45 days.
4. **Data Security Requirements** Businesses must evaluate and maintain reasonable security measures to protect personal information from unauthorized access, theft, or disclosure.
5. **Data Inventory and Documentation** Conduct thorough reviews of the personal information collected, used, and disclosed to maintain transparency and compliance.
By fulfilling these requirements, businesses demonstrate accountability and ensure they uphold the privacy rights established by the CCPA. The California Privacy Rights Act (CPRA), an expansion of the CCPA, strengthens these protections with stricter rules, particularly around sensitive information.
Under the CCPA, penalties for law violations can be either unintentional ($2,500 per customer per violation) or intentional ($7,500 per customer per violation). The CCPA applies to organizations that do business in California and process a large amount of client data.
- In their endeavor to meet the requirements of the CCPA, some businesses might need to invest in technology solutions to efficiently manage and secure client data, streamlining the process of providing notices, implementing consumer rights mechanisms, and maintaining data inventory.
- As the California Privacy Rights Act (CPRA) comes into effect, finance departments in businesses may need to allocates additional resources to ensure compliance, given the stricter rules surrounding sensitive information, as well as potential penalties for violations.
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