On January 1, 2020, California’s new privacy law, the California Consumer Privacy Act (CCPA), takes effect. This landmark legislation is designed to give consumers more ownership of, control over, and security for their personal information. For affected businesses, the CCPA comes with certain compliance challenges.
The CCPA gives consumers five broad rights. They will be able to:
- Compel companies to disclose what personal information they have collected, used, and shared with or sold to third parties. Businesses must, upon request, disclose the source of customers’ personal information, how they use or have used that information, what information was shared with or sold to third parties, and with whom the information was shared,
- Request and receive copies of the specific personal information that companies have collected and used during the 12 months preceding the request.
- Force companies to delete consumers’ personal information.
- Prohibit businesses from sharing or selling consumers’ personal information with/to third parties.
- Be able to exercise these new rights without fear of discrimination for doing so.
Not all businesses will be impacted by the CCPA. The new law applies to businesses that have at least $25 million in annual revenue and that serve California residents. However, some smaller businesses are also subject to the new law. These businesses include companies whose revenue is derived primarily from the sale of consumers’ personal data and companies that collect data on at least 50,000 people.
If a covered business violates the provisions of the CCPA, consumers may sue the company for damages without having to prove a breach of privacy occurred. Instead, it will be enough to show simply that the business failed to meet the technical requirements of the law. In addition to facing potential class action litigation, companies subject to the new law may also face stiff penalties if they violate its provisions.
While the law officially becomes effective on January 1, 2020, affected businesses should already have plans in place, including mechanisms for collecting, maintaining, and deleting consumers’ information. Impacted businesses should also consider revisiting and updating service-level agreements with third parties, as necessary and appropriate.
Baer Reed provides secure, professional legal support services for organizations subject to the CCPA. Our teams of expert attorneys can help companies find efficient, effective solutions for compliance. To learn more, contact us today.
- On October 8, 2019
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