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On June 28, 2018, California enacted the California Consumer Privacy Act of 2018 ("CCPA"). CCPA, unlike any other law, requires companies to honor specific privacy rights of California consumers granted under CCPA.
with readers working within the Business & Consumer Services industries
On June 28, 2018, California enacted the California Consumer
Privacy Act of 2018 ("CCPA"). CCPA, unlike any other law,
requires companies to honor specific privacy rights of California
consumers granted under CCPA.
While this is a California law, it has a national effect.
Practically, companies subject to CCPA may treat all of their
customers the same to avoid implementing a state-by-state approach
or appearing to favor California residents. Other states may follow
California's lead and enact similar laws, like states have done
for other privacy laws currently in effect.
Below is a high-level overview of CCPA. We will update this
chart if CCPA is amended between now and its effective date.
When is CCPA
effective?
January 1,
2020
Who is subject
to CCPA?
A company
doing business in California, collecting or telling others to
collect personal information of California residents, determining
the purposes and means for using that information, and meeting one
of three thresholds:
Annual gross revenues over
$25MM
Annually buys, receives, sells, or shares the
personal information of 50,000 or more California residents,
households or devices
Derives 50% or more of its annual revenue
from selling personal information of California
residents
What
information is protected?
Personal
information of California residents, which is broadly defined. It
includes any information, directly or indirectly, relating to an
individual or household.
What rights
are granted under CCPA?
California
residents are granted the following
rights:
Right to know, at or prior to collection, the
purpose of collection and the categories of personal information
collected
Right to request certain additional
information, including specific pieces of personal information
collected
Right to request deletion of their personal
information in certain instances and subject to several
exceptions
Right to know whether their personal
information is sold or disclosed and to whom
Right to say no to the sale of personal
information
Right to equal service and price, even if
they exercise their privacy rights
What steps can
my company take between now and CCPA's effective
date?
Determine whether CCPA applies to
you
Know and map your data: What specific pieces
of personal information do you collect? Who do you collect it from?
Why do you collect it? How do you share it? Where do you store
it?
Implement processes to respond to requests
from California residents (or all of your customers if you take a
"one size fits all" approach)
Update your privacy policy and be prepared to
do so at least once a year
What are the
penalties?
$7,500 per violation, enforceable by the
Attorney General
Limited private right of action for data
breaches
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
