Last Updated, Sep 1, 2024
What Is The CCPA?
The California Consumer Privacy Act (CCPA) in the U.S. took effect on July 1, 2020. The CCPA, also called the "US version of GDPR," is considered the strongest privacy law in U.S. history to date, reflecting the contents of privacy-related rights of data subjects in the European General Data Protection Regulation(GDPR). The U.S. legal system is divided into federal law and state law, which applies only to certain states. The CCPA, enacted and enforced by the State of California, is a state law that covers Californians and not all Americans. It aims to strengthen consumer privacy and give consumers control over their personal information. It was established in 2018 and went into effect on Jan. 1, 2020. The CCPA grants California residents multiple rights to their personal information and requires strict regulations on certain companies.
We have taken steps to ensure that we will be compliant with the GDPR by Dec 12, 2022.
What Does the CCPA Apply To?
The California Consumer Privacy Act (CCPA) applies to certain businesses that collect personal information from California residents. The law outlines criteria that determine whether a business falls under its scope.
CCPA generally applies to For-Profit Businesses: The CCPA generally applies to for-profit businesses that operate in California and meet certain thresholds related to revenue, data collection, or business model.
Threshold for Application: Businesses must meet one or more of the following criteria to fall under the CCPA's scope (Have an annual gross revenue exceeding $25 million, Buy, receive, or sell the personal information of 50,000 or more California residents, households, or devices annually, Derive 50% or more of their annual revenues from selling California residents' personal information.)
Collecting Personal Information: The CCPA applies to businesses that collect personal information of California residents. Personal information under the CCPA is broadly defined and includes identifiers such as names, addresses, email addresses, IP addresses, browsing history, and more.
Businesses Operating Outside California: Even if a business is not physically located in California, if it collects personal information from California residents and meets the criteria outlined above, it must comply with the CCPA.
Third-Party Data Sharing: The CCPA also applies to businesses that share personal information with third parties for business purposes, subject to certain exceptions and limitations. Service Providers and Contractors: Businesses that provide services to other businesses and process personal information on their behalf (service providers) may also be subject to certain CCPA provisions.
What rights does CCPA have?
Right to Know: Collecting Personal Information: Consumers can know the type and purpose of collecting personal information when it is collected.
Disclosure of Personal Information: Consumers can request their personal information that companies have.
Right to Access: Consumers can access their personal information and get information about what personal information has been collected and how it is being used.
Right to Delete: Consumers can ask companies to delete their personal information under certain circumstances, including deleting personal information that is no longer necessary, or when personal information is illegally processed.
Right to Opt-Out: Consumers can request that their personal information not be sold to third parties, which means the right to refuse to pass personal information to other companies for advertising and marketing purposes.
Right to Non-Discrimination : Consumers have the right not to be unfairly discriminated against as a result of exercising their CCPA rights. In other words, companies should not take retaliatory action against consumers exercising their rights.
What is the impact of CCPA?
The CCPA sets new standards for consumer privacy and has had a significant impact on privacy laws across the United States. Companies must reorganize their privacy management systems to comply with the CCPA, transparently disclose privacy policies, and establish a system that responds quickly to consumer rights requests.
CCPA offers new challenges and opportunities to businesses at the same time. Winning consumer confidence through thorough privacy measures and strengthening privacy protection can have a positive impact on a company's reputation and competitiveness.