California Consumer Privacy Act (CCPA)

What is the California Consumer Privacy Act (CCPA)?

The California Consumer Privacy Act, also know as CCPA, was created to protect the privacy and data of consumers. The CCPA initiative states that the act is intended to “give Californians the ‘who, what, where, and when’ of how businesses handle consumers’ personal information.” The act requires businesses tell consumers what data its collecting and gives consumers the right to say no to the sale of their personal information. It will also allow consumers to sue companies if their personal data is breached.

What will the CCPA accomplish?

  1. Consumers will have the right to know what information companies are collecting – Businesses use personal information every day for targeted advertisements, decision on pricing and level of service given and have an extensive electronic file on the consumer.
  2. Consumers will have the right to say no to a business sharing or selling personal information – Businesses have extensive electronic customer records they know the customer’s address, current location, web browsing history, family members, age and financial information. They are able to sell this information for their own gain.
  3. Consumers hold the right to protections against business that do not uphold the value of privacy – There will be legal consequences to businesses that don’t respect consumers’ privacy.

Who needs to comply with CCPA?

Companies that meet any of the following criteria will be expected to comply with CCPA:

  • Company must exceed an annual gross revenue of $25 million
  • Company obtains personal information of 500,000 or more California residents, households, or devices annually; or
  • Company obtains 50 percent or more of their annual revenue from selling California residents’ personal information.

Most companies in the United States have customers in California and will likely be required to comply if they want to continue to receive information from their California customers. California is likely the first state of many to implement these regulations. Eleven states, including New Jersey and Washington, have introduced similar legislation.

When will the CCPA go into effect?

The California Consumer Privacy Act is set to be implemented on January 1, 2020.

Right to Opt Out:

The California Consumer Privacy Act (CCPA) provides consumers with the right to opt out and stop businesses from selling their personal information. The CCPA opt out provision is one of several in California’s new privacy law that goes into effect on January 1, 2020 and will be enforced by the California Attorney General starting at the latest on July 1, 2020 per the SB 1121 amendments. Click HERE to submit an opt-out.