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In June 2018, the state of California passed a Consumer Privacy Act (CCPA). This Act could have consequences for American companies. CCPA is now the most critical data privacy statute that the U.S has ever seen. The Act uses the European style of data privacy regulations. Although CCPA will go into effect on January 2020, it already covers all private data collected since January 2019. Here is what you need to know about the new California Consumer Privacy Act.
What is the new CCPA?
The new CPPA allows all California clients to demand any information that a company has saved on them. Additionally, a customer can request to see a list of all third parties that the company shares its data with. The CPPA also allows clients to sue a company if it violates privacy regulations.
Affected Companies.
This California law affects any company that serves the state’s residents and has an annual revenue of at least $25 million. Any company that has private data of at least 50,000 people or collects more than half of its income from the sale of personal information must also comply with the law. These enterprises do not need to have a physical address in California or within the United States to fall under the law. The new CCPA exempts all insurance companies, agents, and support Organizations.
Non-Compliance.
Any enterprise that receives a notice of violation has 30 days to comply. If the company fails to comply, it will have to pay a fine of up to $7,500 per record. In case a breach occurs, the law also assigns penalties of $100 to $750 per consumer per incident.
Coverage.
The new CCPA has a broad approach to everything that constitutes sensitive data. Initially, the law covered both employee and consumer data. However, an amendment passed in April exempts employees. The following is what CCPA considers “personal information.”
The new CCPA has a broad approach to everything that constitutes sensitive data. Initially, the law covered both employee and consumer data. However, an amendment passed in April exempts employees. The following is what CCPA considers “personal information.”
- Identifiers such as real names, postal address, account names, driver’s license numbers, or other similar ids
- Protected classifications under Federal or California Law
- Biometric information
- Geolocation data
- Records of personal property
- Professional or employment information
- Education information.
Key Provisions.
All companies must allow their clients to choose whether their data should be shared with third parties. As such, enterprises can now separate the information they collect as per the user’s privacy choices. Additionally, even though a company has to offer equal services to all its customers, it can provide incentives to those who provide their data. The California law also allows customers to access their records. Any California customers can now demand to see what information the company collects about them.
The remaining part of the year will be very vital for companies under California law. Every California business will spend this time mapping the personal information that they should collect. Since the regulatory process continues to unfold, it is wise to consult the experts if you want more information about CCPA. SoCalInternetLawyer.com will guide you on everything you need to know about the California law.