CCPA Compliance: A Comprehensive Guide for Businesses
The California Consumer Privacy Act (CCPA) is a landmark data privacy law that grants California consumers significant rights regarding their personal information. For businesses, achieving and maintaining CCPA compliance is not merely a legal obligation but a fundamental aspect of building consumer trust and demonstrating a commitment to privacy.
What is the CCPA?
Enacted in 2018 and effective from January 1, 2020, the CCPA defines "personal information" broadly, encompassing any information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household. Its primary goal is to provide California residents more control over how their personal information is collected, used, and shared by businesses.
Who Must Comply with CCPA?
The CCPA generally applies to for-profit entities doing business in California that collect California consumers' personal information and meet one or more of the following thresholds:
- Has annual gross revenues in excess of $25 million.
- Annually buys, receives for commercial purposes, sells, or shares for commercial purposes the personal information of 100,000 or more California consumers or households.
- Derives 50% or more of its annual revenues from selling or sharing California consumers' personal information.
It's important to note that even businesses outside of California may be subject to CCPA if they meet these criteria and interact with California consumers.
Key Consumer Rights Under CCPA
The CCPA, enhanced by the California Privacy Rights Act (CPRA), empowers consumers with several core rights:
Right to Know
Consumers have the right to request that a business disclose the categories and specific pieces of personal information it has collected, the categories of sources from which the personal information is collected, the purposes for collecting or selling personal information, and the categories of third parties with whom the business shares personal information.
Right to Delete
Consumers can request that a business delete any personal information about them that the business has collected, subject to certain exceptions.
Right to Opt-Out of Sale or Sharing
Consumers have the right to direct a business that sells or shares personal information about them to third parties not to sell or share their personal information.
Right to Correct Inaccurate Personal Information
With the CPRA, consumers can request that businesses correct inaccurate personal information they hold about them.
Right to Limit Use and Disclosure of Sensitive Personal Information
The CPRA introduced the right for consumers to limit a business's use and disclosure of their sensitive personal information to only what is necessary to perform the services or provide the goods requested.
Right to Non-Discrimination
Businesses cannot discriminate against consumers who exercise their CCPA rights. This means they cannot deny goods or services, charge different prices, or provide a different levelor quality of goods or services.
Steps to Achieve CCPA Compliance
For businesses subject to the CCPA, a structured approach to compliance is essential:
Data Mapping and Inventory
Identify what personal information is collected, where it is stored, how it is used, who it is shared with, and for how long it is retained. This forms the foundation of understanding your data landscape.
Update Privacy Policy
Your privacy policy must be clear, transparent, and regularly updated to reflect CCPA requirements. It should inform consumers about their rights, the categories of personal information collected, the purposes for collection, and how to exercise their rights.
Implement Data Subject Request (DSR) Processes
Establish clear, accessible methods for consumers to submit requests to know, delete, opt-out, correct, or limit. Businesses must respond to these requests within specified timeframes (typically 45 days, with a possible 45-day extension).
Provide "Do Not Sell or Share My Personal Information" Link
Businesses that sell or share personal information must provide a clear and conspicuous link on their homepage titled "Do Not Sell or Share My Personal Information" (or similar wording for sensitive personal information limits). This link should lead to a page allowing consumers to easily exercise their opt-out rights.
Vendor Management
If you share personal information with third-party service providers or contractors, ensure that contracts include specific CCPA-compliant clauses limiting how they can use the data and requiring them to uphold consumer privacy rights.
Security Measures
Implement and maintain reasonable security procedures and practices appropriate to the nature of the personal information to protect it from unauthorized access, destruction, use, modification, or disclosure.
Employee Training
Educate employees who handle personal information or consumer requests about CCPA requirements and internal procedures for managing data and responding to consumer rights requests.
Penalties for Non-Compliance
Businesses found to be in violation of the CCPA can face significant penalties. Intentional violations can incur civil penalties of up to $7,500 per violation, while non-intentional violations can lead to penalties of up to $2,500 per violation. Furthermore, consumers have a private right of action in cases of data breaches, allowing them to seek statutory damages.
CCPA vs. CPRA
The California Privacy Rights Act (CPRA), which took full effect on January 1, 2023, significantly amended and expanded the CCPA. The CPRA introduced new consumer rights, created the California Privacy Protection Agency (CPPA) to enforce the law, and broadened definitions. Businesses previously compliant with the CCPA must update their practices to meet the enhanced requirements of the CPRA.
Achieving and maintaining CCPA compliance is an ongoing process that requires diligent attention to data practices, privacy policies, and consumer rights. By prioritizing compliance, businesses not only fulfill their legal obligations but also foster trust and demonstrate their commitment to respecting consumer privacy in an increasingly data-driven world.