The amendment and expansion of the California Consumer Privacy Act (CCPA), approved by California voters’ passage of Proposition 24 as the California Privacy Rights Act of 2020 (CPRA), will require businesses to make key changes to their privacy programs and systems before its January 2023 implementation (for data collected beginning in January 2022). Covered businesses will be required to adhere to more stringent requirements that include consumer notices, compliance with certain requests, age-based data collection and usage restrictions, employee data protection, minimum data security mandates, and more.
While many organizations relied on outside counsel to help them navigate the changes necessitated by the original CCPA legislation, some businesses are now considering hiring contract or even permanent staff charged with managing the rollout of and ongoing compliance with the CPRA. Some of the new requirements are policy-based, including the formulation and dissemination of required consumer notices. Others, however, are more transactional in nature. Bringing on support staff may offer a solution to manage ongoing compliance with tasks such as monitoring and testing systems, verifying that requests to access or delete data were handled appropriately, and researching an evolving landscape of privacy requirements.
The California regulations are not the only privacy rules with which businesses must comply. Many organizations around the world are subject to the EU’s General Data Protection Regulation (GDPR), which became effective in 2018. And in addition to California, several other states, including New York, Maryland, Massachusetts, Hawaii, and North Dakota, have enacted privacy laws with varying requirements. With consumer privacy becoming an increasingly important issue, it is reasonable to assume that other states and countries around the world will adopt protectionary legislation in the coming years.
U.S. businesses marketing to and working with customers across state lines, as well as global organizations, will likely find it simplest to create privacy policies and implement systems designed to comply with the most stringent requirements, rather than managing disparate systems and policies. This increased focus on consumer privacy underscores the need for organizations to be proactive about adding support solutions to manage privacy mandates.
Baer Reed provides legal services, including support for managing consumer privacy programs, to organizations around the world. Contact us to learn more.
- On April 9, 2021
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