The California Consumer Privacy Act (CCPA) aims to protect the rights of California consumers. Because California represents a vast market, every business should understand the CCPA – even if they are located outside of California.
The California Consumer Privacy Act (CCPA) protects California consumers. Photo by Matthew Henry on Unsplash
What Is The California Consumer Privacy Act?
California Governor Jerry Brown signed the California Consumer Privacy Act (CCPA) into law in 2018. The CCPA goes into effect on January 1, 2020. California will enforce the CCPA starting on July 1, 2020.
The CCPA adds new rights for consumers to control and understand how companies collect and use their data. In that regard, this law has an intent similar to the GDPR in the European Union.
What Does The California Consumer Privacy Act Do?
The CCPA outlines new rights for California consumers. These rights include:
- The right to know what information companies collect about them.
- The ability to know whether companies sell their personal information – and to whom they sell it.
- The right to opt-out of the sale of personal information.
- Tools to access personal information that companies collect about them.
- A guarantee of equal service if exercising one’s privacy rights.
These rights represent a fundamental shift in how businesses must interact with customers and others. The CCPA requires companies that meet certain conditions to keep precise records about how they use California consumers’ information. The Act also allows California consumers to understand better how companies use their data.
The law also provides enhanced damages if companies allow personal information to be stolen.
How Should Business Owners Respond To The CCPA?
As with any new law, one must often wait to see how things play out in the field and courts. However, every business in California – or who does business with California consumers – should aim to approach the issue proactively. Since the potential liability can be devastating, it makes sense to seek legal counsel that can guide you through how this law applies to your business.
- Businesses should know if the CCPA applies to them. The CCPA applies to companies that exceed $25 million in revenue or that collect personal information of more than 50,000 consumers. The law might change to extend or reduce those limits, so ensure you discuss it with an attorney.
- Review and update your privacy policy. The CCPA requires that a business’ privacy policy contain certain information. Additionally, it states that the privacy policy must be easy-to-read for the average consumer. Laws like the CCPA highlight the need for giving a privacy policy careful consideration instead of using a random template on the Internet. Smart business owners work with qualified legal counsel to avoid blow-ups later.
- Know how to make proper disclosures. The CCPA requires businesses to disclose to consumers – at the time they collect information – how they plan to use the data, or with whom they plan to share the information they collect. This means that businesses should come up with a plan to make these disclosures when customers interact with them.
- Remember that ignorance does not provide a defense. A simple rule, but one that many business owners fail to follow. Remember that just because you do not know about a law, it doesn’t mean that the law does not apply to you. Luckily, business owners can efficiently work with an attorney to understand exactly how they should respond to regulations, such as the CCPA.
What Happens If Businesses Don’t Follow The CCPA?
The California Consumer Privacy Act provides penalties for businesses that don’t follow the law.
The California Attorney General can enforce the CCPA, imposing penalties of up to $7500 per violation for businesses not in compliance.
Additionally, the CCPA provides consumers with remedies if their personal information is lost or stolen. These damages can be between $100 and $750 per violation.
