As we approach 2020, businesses should be aware that the California Consumer Privacy Act (CCPA), also known as California’s version of Europe’s GDPR, goes into effect January 1st.
The CCPA creates new data protection laws. They require businesses to be more transparent about the data they collect, use, buy, and sell. It also specifically requires them to grant greater control to their customers.
And with the new rules here to stay, here’s everything you need to know about the new law and how it will impact your business.
What is the CCPA?
The California Consumer Privacy Act provides an outline of wide-reaching consumer protection rights that span the use, sale, and collection of data from California residents.
The CCPA gives Californians the right to:
- Know what personal information is being collected about them
- Know whether their personal information is being sold or shared and to whom
- Opt out of the sale of their personal information
- Access the personal information being collected
- No discrimination if they opt out
The CCPA also requires companies that collect personal information to delete all of it upon request (with some exceptions) and disclose data collection practices in privacy policies.
How Does It Impact Me?
The CCPA is the latest part of a global trend by both the public and governments requiring businesses and advertisers to take privacy more seriously, with a specific focus on consumer data.
California makes up 12% of the US population and represents a significant portion of US consumer purchasing power.
If you want to avoid violations and possible fines, we highly recommend that you understand the law and what it means for your current business practices.
The CCPA applies specifically to for-profit businesses that meet at least one of these criteria:
- Over $25 million in annual gross revenue
- Buy or sell the personal information of over 50,000 California residents, households, or devices
- Make over 50% of annual revenue from selling California residents’ personal information
In a nutshell, these businesses will need to provide additional transparency in the way they collect, use, and transfer data on Californian consumers.
Why It’s Crucial To Become CCPA Compliant
Businesses that violate the new CCPA provisions are at risk of some serious fines.
According to CCPA documentation, businesses can face fines of up to:
- $100 to $700 per consumer per data breach incident
- Up to $2,500 for unintentional violations and $7,500 for intentional violations
It’s easy to see how such heavy penalties could impact any business that serves customers across the entire U.S. Additionally, as data privacy laws become a larger trend, businesses who comply early and plan ahead will have a competitive advantage.
Get the CCPA Readiness Checklist
We’ve put together an easy checklist for businesses to reference to get ready for the new laws.