The California Consumer Privacy Act (CCPA) will come into effect on July 1st of this year. Based on the GDPR, the law was passed with the goal of protecting the data privacy rights of California residents, but they are not the only ones who should be concerned about its implementation.
Due to the coronavirus pandemic, a group sent a letter in March to California Attorney General Xavier Becerra requesting... postponement of the law's implementationHowever, to date, the Attorney General's Office maintains its position that the deadline will remain in effect. Therefore, starting July 1st, fines may be applied to punish those who violate the law.
This is the final stretch in the period to comply with the new rules set forth by the CCPA. And contrary to what many may believe, although the CCPA is part of US state-level legislation, its application affects companies worldwide.
Understanding the CCPA.
To comply with the new law, it's necessary to understand it. Knowing how the CCPA relates to your business is the first step. We then need to understand who is covered by the regulation. The CCPA affects all companies with... for-profit that Do business in California. e They collect personal information from consumers residing in California., meeting at least one of the following criteria: purchases, receives, sells, or shares the personal information of at least 50.000 California residents, households, or devices; or has gross annual revenue exceeding $25.000.000; or derives more than 50% of its annual revenue from the sale of personal information of California residents.
Keep in mind that your company may interact with more personal information from California residents than you realize, given that it is the most populous state in the US. Furthermore, there are some ambiguous definitions in the law. For example, "selling personal information" doesn't necessarily involve exchanging payment. Other actions, including online advertising, can be seen as "selling" if they involve sharing cookies to track online behavior.
Regarding "doing business" in California, any company that has customers in the state is considered eligible under the law. There is no need to have employees or a subsidiary located there. This means that even if you are completely outside of California, the CCPA can still apply to your business.
Preparation for CCPA.
Even if your company is compliant with the GDPR, it is not necessarily automatically compliant with the CCPA, due to the differences between the two regulations. And in the difficult times we are going through, amidst the coronavirus pandemic, it may seem impossible to be compliant, but there are some simple steps that can be followed to begin this process.
First, get a complete overview of the information your company collects. data mapping Your company should reassess the data it is collecting to ensure it is compliant with the CCPA. You may also be vulnerable to the CCPA through the companies you work with; consider their data practices as well.
Perform an update of your privacy policyInclude important information regarding the CCPA, such as a description of the privacy rights of California residents, as well as the categories of data your company collects and shares. All your company employees need to have visibility of your policy; it should play a key role in all your business activities.
Online privacy.
With the large number of companies that have migrated to the remote format In recent months, more and more services have been offered through digital means. The extent of data flow is greater than ever.
CCPA compliance needs to be a priority. With the coronavirus, many companies are seeing their budgets tighten, but compliance is of paramount importance. The financial penalties that can be applied from July 1st are a risk that could be very costly to take at this time.
Remember to always stay informed about updates related to the CCPA. The regulation contains important details, such as those regarding its implementation, which will still be interpreted and applied by the California Attorney General.
