By Eleanor Bennett
7 min read
Today, privacy is an issue that has become more relevant than ever to individuals and businesses alike. As a result, many users are taking steps to protect their data. The California Consumer Privacy Act (CCPA) is a law that was enacted in order to provide greater protection and control over the personal information of California residents.
In order to avoid significant penalties and maintain their reputation, it is mandatory for businesses operating in California to comply with the California Consumer Protection Act (CCPA). Throughout this blog, we will be exploring the ins and outs of CCPA compliance, such as what the law requires, who the law applies to, and how businesses can ensure they are complying with their responsibilities as per this law.
What is CCPA compliance?
There are certain rights which California consumers have under the CCPA with regards to their personal information, including the right to know what personal information is being collected about them, the right to request deletion of that personal information, and the right to opt out of the sale of that personal information.
There are certain requirements under the California Consumer Protection Act (CCPA) for organizations that collect, process, or store personal information about California consumers. Companies are required to provide certain disclosures and notices, such as the "Do Not Sell My Personal Information" link on their websites, and they must honor requests made by consumers to exercise their rights under the CCPA. As a result of the CCPA, for-profit businesses that collect personal information from California consumers, do business in California, and meet certain thresholds including having annual gross revenues in excess of $25 million, or buying, receiving, selling, or sharing more than 50,000 consumer, household, or device personal information metrics annually.
What does CCPA stand for?
CCPA is an acronym for the California Consumer Privacy Act.
Why was the CCPA introduced?
As a result of growing concerns over the manner in which businesses collect, use, and protect personal information, the California Consumer Privacy Act (CCPA) was introduced in response to these concerns. Consumers today are generating vast quantities of personal data by their online activities and their interactions with businesses in the digital age, and many people are concerned about who has access to this information and how it will be used.
As a result of the CCPA, California consumers have been given greater control over their personal information, and businesses have been forced to increase transparency when it comes to how their personal information is collected and used. California consumers now have a number of rights regarding their personal information. For example, consumers are entitled to know what personal information is being collected about them, to request that their information be deleted, and to opt out of the sale of their information.
As a model for privacy legislation in other states and jurisdictions, the CCPA represents a significant step forward in consumer privacy protection. With the introduction of the CCPA, consumers are able to increasingly control their personal information and enjoy more privacy protections.
Which organizations must comply with the CCPA?
For-profit businesses that collect personal information of California consumers, do business in California, and meet certain thresholds are subject to the California Consumer Privacy Act.
Specifically, a business must comply with the CCPA if it:
Obtains and compiles personal information of California consumers: This includes information that directly or indirectly identifies, describes, or is capable of being associated with a specific consumer or household.
The business operates in California or sells goods or services to California residents.
At least one of the following thresholds is met:
The company generates more than $25 million in gross revenue each year.
Purchases, receives, sells, or shares the personal information of at least 50,000 consumers, households, or devices per year.
It generates 50% or more of its revenue from selling consumer information.
As long as businesses collect, process, or store personal information about California consumers, the CCPA applies to them regardless of where they are located. Under the CCPA, government agencies or organizations are exempt from the definition of a "business".
What is classed as personal information under CCPA?
A consumer or household's personal information is defined under the CCPA as any information that identifies, relates to, describes, or could reasonably be linked to them. Examples of personal information under CCPA include, but are not limited to: name, address, email address, phone number, social security number, driver's license number, passport number, biometric data, geolocation data, and browsing history. An inference about a consumer can also be drawn from such information.
How can a company comply with the CCPA?
Companies can comply with the CCPA by taking the following steps:
Inform consumers about the types of personal information that will be collected and their intended use at or before the point of data collection.
Consumers should be given the option of opting out of having their personal information sold.
Consumers should have the right to request access to and deletion of their personal information.
Ensure consumers' requests for access to and deletion of their personal information are verified: Develop and implement a process for verifying consumer requests.
Employees who handle consumer inquiries or data requests should be trained on CCPA compliance.
Include CCPA-required disclosures in privacy policies.
Ensure that vendor contracts comply with CCPA requirements by reviewing them.
CCPA compliance requires maintaining records of consumer requests and how they were handled.
Companies can follow these steps to comply with the CCPA, but the specific requirements themselves may vary depending on the size and nature of the company.
What is the difference between CCPA and CPRA?
According to the California Consumer Privacy Act (CCPA), the California Privacy Rights Act (CPRA) is an updated version of the California Consumer Privacy Act (CCPA) that extends and strengthens California's privacy laws. There are some key differences between the CCPA and the CPRA, including:
It provides additional rights to consumers over and above those granted in the CCPA, including the right to correct inaccurate personal information, the right to restrict the use of sensitive personal information, and the right to object to the use of personal information for targeted advertising purposes.
An expanded definition of personal information: The CPRA includes certain inferred information as well as precise geolocation data as part of the definition of personal information.
It provides for the establishment of the California Privacy Protection Agency, which will be responsible for enforcing privacy laws and imposing fines for those who fail to comply.
Non-compliance with privacy laws will be punishable by increased penalties: The CPRA increases the penalties for non-compliance with privacy laws.
There is a longer retention period for employee data under the CPRA. This means that businesses are permitted to retain employee data for a longer period of time than previously allowed under the CCPA.
CPRA, as a whole, is intended to strengthen and expand upon the privacy protections provided by the CCPA by granting additional rights to consumers, broadening the definition of personal information and establishing a privacy agency. There are also increased penalties for non-compliance with the law.
Who enforces the CCPA's regulations?
It is the responsibility of the California Attorney General's office to ensure that the California Consumer Privacy Act (CCPA) is enforced. CCPA violations can be investigated by the Attorney General's office and legal action can also be taken against businesses that violate this law.
Consumers are also provided with the right to bring their own lawsuits against businesses for certain data breaches under the CCPA. This gives them a private right of action against businesses. Businesses that violate the CCPA can also be prosecuted by other government agencies, such as the Federal Trade Commission (FTC).
What are the penalties for violating CCPA?
CCPA violations can lead to significant penalties for organizations. CCPA violations can be fined up to $2,500 for each violation or $7,500 for an intentional violation by the California Attorney General. Moreover, consumers can file a private lawsuit against a business if it fails to implement and maintain reasonable security procedures and practices, resulting in statutory damages of $100 to $750 per consumer per incident or actual damages, whichever is greater.
As the penalties for violating the CCPA can be significant and damaging to a business's reputation, organizations must take CCPA compliance seriously and implement policies and procedures to ensure compliance.
Centralizing audit logs under CCPA
Audit logs are important to keep under CCPA as they help businesses demonstrate compliance. In accordance with the CCPA, businesses are required to provide consumers with information about how their personal information is collected, used, and shared. When businesses maintain detailed audit logs, they can track the collection, use, and sharing of personal information, and provide that information to consumers upon request.
Additionally, audit logs can assist businesses in verifying consumer requests for access to or deletion of personal information. Businesses can assure consumers that their information is accurate and complete if they track when it was collected, how it was used, and when it was shared.
Finally, audit logs can be used to detect data breaches. By maintaining detailed records of the collection and use of personal information, businesses can more easily identify what information was compromised and take appropriate remedial action. By providing consumers with notice of a breach, businesses can minimize the impact of a breach and comply with their obligations under the CCPA.
If you want to centralize your audit logs under CCPA then why not consider using our CCPA compliance solution to assist your auditing efforts?
If you found this compliance article informative then why not read our guide to UAE NESA or what are CIS benchmarks?