The California Consumer Privacy Act (CCPA)

The California Consumer Privacy Act (CCPA)

The General Data Protection Regulation (GDPR) is a comprehensive privacy regulation that was adopted by the European Union (EU) on April 14, 2016, and came into effect on May 25, 2018. The GDPR is designed to protect the personal data of individuals in the EU, and it applies to any organization that processes the personal data of EU residents, regardless of where the organization is based.

The California Consumer Privacy Act (CCPA) is a privacy law that came into effect on January 1, 2020. It is designed to enhance the privacy rights and consumer protection for residents of California, United States. The CCPA grants California consumers the right to know what personal information is being collected about them, the right to delete that information, and the right to opt-out of the sale of their personal information.

Under the CCPA, businesses are required to disclose the categories of personal information they collect, the purposes for which the information is used, and the categories of third parties with whom the information is shared. Businesses must also provide a clear and conspicuous link on their website homepage titled "Do Not Sell My Personal Information" for consumers to opt-out of the sale of their personal information.

The CCPA applies to businesses that meet certain criteria, including annual gross revenues of $25 million or more, businesses that buy or sell personal information of 50,000 or more consumers, households or devices, or businesses that derive 50% or more of their annual revenues from selling consumers' personal information. The CCPA has penalties for non-compliance, including fines of up to $7,500 per violation.

Timeline of the CCPA

The California Consumer Privacy Act (CCPA) has gone through several stages and updates since it was first introduced. Here is a brief timeline of the CCPA:

  • June 28, 2018 - The CCPA is signed into law by California Governor Jerry Brown.
  • January 1, 2020 - The CCPA goes into effect, and businesses must comply with the law.
  • July 1, 2020 - The California Attorney General's Office begins enforcing the CCPA.
  • August 14, 2020 - The California Attorney General's Office issues final regulations for the CCPA.
  • November 3, 2020 - California voters approve Proposition 24, also known as the California Privacy Rights Act (CPRA), which amends and expands the CCPA.
  • January 1, 2023 - The CPRA amendments become effective, adding additional requirements for businesses, including the creation of a new enforcement agency, the California Privacy Protection Agency.

Guide to CCPA Compliance

If you are a business that collects personal information of California residents and meets the CCPA's criteria for compliance, here are some steps you can take to ensure that you are CCPA compliant:

  1. Understand what personal information you collect: Create an inventory of the personal information you collect, where it is stored, and how it is used. This includes information such as name, address, email address, phone number, social security number, IP address, geolocation data, and browsing history.
  2. Provide notice to consumers: Create a privacy policy that explains your data collection practices and provide a notice at or before the point of collection. The notice must include the categories of personal information you collect, the purposes for which the information is used, and the categories of third parties with whom the information is shared.
  3. Provide a "Do Not Sell My Personal Information" link: Add a clear and conspicuous link on your homepage that enables consumers to opt-out of the sale of their personal information.
  4. Implement processes for data subject requests: Develop processes for consumers to request access to, deletion of, and the ability to opt-out of the sale of their personal information.
  5. Ensure data security: Implement reasonable security measures to protect personal information from unauthorized access, use, disclosure, and destruction.
  6. Train your employees: Ensure that all employees who handle personal information are trained on the CCPA and your company's policies and procedures.

Following these steps can help ensure that your business is CCPA compliant and avoid potential fines for non-compliance.

This document was last updated on April 19, 2023