The new California data protection law, named the California Consumer Privacy Act (CCPA), went into effect on January 1, 2020, bringing a wealth of changes for both consumers and businesses. The law deals directly with how companies collect, store, and handle consumer information. For California consumers, the law provides greater transparency into how their data is used and offers options to opt-out of certain data practices.
How the New California Data Protection Law Affects Consumers
The CCPA applies to all California consumers, regardless of where the companies they deal with are headquartered or whether their business transactions take place on or offline. Any company handling the personal information of Californians are subject to the new rules. The CCPA’s definition of personal information includes:
Among the many effects it has for consumers:
- California consumers will now have the right to be informed of the personal information a business collects, sells, or discloses; as well as the parties and purposes for which the information is disclosed.
- California residents will have the right to obtain portable copies of their personal information from businesses.
- California residents may also prohibit businesses from selling their personal information and request that the businesses delete their personal data.
- Californians have a right to sue companies that fail to comply with CCPA protocols.
How the California Consumer Privacy Act Affects Businesses
For businesses, the penalties can be stiff -- $2,500 per violation or up to $7,500 per intentional violation.
The consumer privacy act is expected to affect businesses in several ways. They will now need to:
- Explain why they possess certain data.
- Demonstrate that they have adequate security measures in place.
- Refrain from commodifying or selling consumer data to third parties.
- Respond to complaints within 30 days or face litigation.
- Prepare to plead their case to the court and define vague portions of the law.
What California’s Data Privacy Laws Mean for The Internet
To a certain extent, content personalization for sites like Facebook, Google, or Amazon depends upon the use of consumer data. These sites – many of which happen to based in California’s Silicon Valley – will require visible links for consumers to request their data or direct companies not to sell it, updates to the terms of service pages, and internal processes to handle the retrieval and response of consumer data requests.
Stay Ahead of Legislation
After seeing how the similar General Data Protection Regulation (GDPR) unfolded in the EU, we can expect the CCPA to be the first of many consumer data privacy regulations at the state and federal level. By working with Kroll Settlement Administration, an award-winning class action claims administrator, businesses and counsel can proactively avoid obstacles, reduce fraud risk, and get their legal matters resolved as expeditiously as possible. Contact us for more details.