California Consumer Privacy Act (CCPA)
California Consumer Privacy Act (CCPA) Definition
The California Consumer Privacy Act (CCPA) is a state statute intended to enhance privacy rights and consumer protection for residents of California, United States. It grants consumers more control over the personal information that businesses collect about them.
The CCPA was signed into law on June 28, 2018, and went into effect on January 1, 2020. It is considered one of the most extensive privacy laws in the United States and has similarities to the European Union's General Data Protection Regulation (GDPR).
Key Concepts and Provisions of the CCPA
Consumer's Right to Know: The CCPA grants consumers the right to know what personal information businesses collect about them and how that information is used. Businesses are required to disclose the categories of personal information they collect, the sources from which the information is collected, the purposes for which the information is used, and the categories of third parties with whom the information is shared.
Consumer's Right to Delete: Consumers have the right to request that businesses delete their personal information, subject to certain exceptions. Upon receiving a verified request, businesses must delete the consumer's personal information from their records and direct their service providers to do the same, unless an exception applies.
Consumer's Right to Opt-out: Businesses that sell personal information are required to provide a "Do Not Sell My Personal Information" link on their websites, allowing consumers to opt-out of the sale of their personal information. Consumers can exercise this right at any time, and businesses are prohibited from discriminating against consumers who exercise this right.
Consumer's Right to Non-Discrimination: The CCPA prohibits businesses from discriminating against consumers who exercise their rights under the CCPA. Businesses cannot deny goods or services, charge different prices, or provide a different level or quality of services to consumers who exercise their privacy rights.
Children's Privacy: The CCPA includes specific protections for children under the age of 16. Businesses must obtain opt-in consent from parents or guardians before selling personal information of children under the age of 13. For children between the ages of 13 and 16, affirmative consent must be given by the child themselves.
Business Obligations: In addition to the consumer rights, the CCPA imposes certain obligations on businesses. Businesses must implement reasonable security measures to protect the personal information they collect from unauthorized access, destruction, use, modification, or disclosure. They must also provide consumers with at least two methods for submitting requests to exercise their privacy rights, including a toll-free telephone number and a website address.
Compliance with the CCPA
Businesses should ensure they are in compliance with the CCPA by understanding its requirements and implementing necessary changes to their privacy policies and data management practices. Here are some tips for businesses to prevent any violations:
Understand the Scope of the Law: Businesses should assess whether the CCPA applies to them based on their annual gross revenues, the amount of California consumer data they handle, and whether they meet any other thresholds outlined in the law.
Update Privacy Policies: Businesses must review and update their privacy policies to include the required disclosures about the categories of personal information collected, the purposes for which the information is used, and the rights available to consumers.
Implement Data Protection Measures: Businesses must implement reasonable security measures to protect the personal information they collect. This can include encryption, access controls, regular data backups, and employee training on data security best practices.
Provide Consumer Rights Mechanisms: Businesses should establish processes to handle consumer requests to know, delete, and opt-out. This may involve creating dedicated email addresses or toll-free numbers to receive and process consumer requests.
Train Employees: Businesses should educate and train their employees on the requirements of the CCPA, including how to handle consumer requests, protect personal information, and comply with the law's provisions.
Relationship to the GDPR
The CCPA shares similarities with the European Union's General Data Protection Regulation (GDPR), which was implemented in May 2018. Both regulations aim to enhance individuals' privacy rights and impose obligations on businesses that collect and process personal information. However, there are key differences between the two:
Territorial Scope: The GDPR applies to businesses that process the personal data of individuals in the European Union, regardless of the business's location. In contrast, the CCPA applies to businesses that collect the personal information of California residents, regardless of where the business is located.
Consent Requirements: The GDPR emphasizes obtaining explicit consent from individuals for the processing of their personal data, while the CCPA focuses on giving consumers the right to opt-out of the sale of their personal information.
Penalties and Enforcement: The GDPR allows for significant fines for non-compliance, with penalties reaching up to 4% of a company's annual global turnover. The CCPA provides for civil penalties of up to $2,500, or up to $7,500 for intentional violations.
Despite the differences, it is important for businesses to understand and comply with both regulations if they handle personal information of individuals in both California and the European Union.
Related Terms
- General Data Protection Regulation (GDPR): A regulation in the European Union that addresses data protection and privacy for individuals within the EU and the European Economic Area.
- Personal Information: Any information that identifies, relates to, describes, or is capable of being associated with, a particular individual.