UNDERSTANDING THE CALIFORNIA CONSUMER PRIVACY ACT (CCPA) AND ITS IMPACT ON BUSINESSES
VOS Consulting Group
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The California Consumer Privacy Act (CCPA) is a state-level privacy law that took effect on January 1, 2020 and applied to businesses that operate in California and collect personal information from California residents. The CCPA grants California residents the right to know what personal information businesses collect about them and the right to have that information deleted. In November 2020, California voters approved the California Privacy Rights Act (CPRA), which went into effect on January 1, 2023, and amended and expanded the CCPA.
Impact of the CCPA on Businesses
The CCPA's broad applicability has significantly impacted businesses that collect, use, and share personal information. Businesses subject to the CCPA must comply with its requirements or face fines and other penalties. In addition, the CCPA provides statutory damages of up to $750 per violation and $7,500 for each intentional violation.
To comply with the CCPA, businesses must implement appropriate privacy policies, provide clear notices to California residents, and respond to requests for access and deletion of personal information. In addition, businesses should work with privacy experts to understand the law's requirements and develop strategies to manage compliance risks. This includes implementing data management policies and procedures that align with the CCPA's requirements and providing ongoing employee training.
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Effect of the CPRA
The CPRA amends and expands the CCPA, providing California residents with additional rights regarding their personal information, such as the right to correct inaccurate personal information and limit the use of sensitive personal information. The CPRA also imposes additional obligations on businesses, such as implementing reasonable security measures and conducting annual risk assessments. The CPRA creates a new enforcement agency, the California Privacy Protection Agency, which will have the authority to enforce the CCPA and the CPRA.
Compliance with the CCPA and the CPRA
Businesses subject to the CCPA and the CPRA should take steps to ensure compliance with these laws to avoid fines and other penalties. This includes understanding the requirements of the laws, implementing policies and procedures that comply with the laws, providing clear notices to California residents, and responding to requests for access and deletion of personal information. In addition, businesses should work with privacy experts to develop strategies to manage compliance risks and ensure ongoing compliance with the CCPA and the CPRA.
Contact VOS Consulting Group to learn more about the proactive steps and requirements you should be taking to manage your compliance risks.