California Consumer Privacy Act CCPA – Effect on CA Businesses

data privacy

Data privacy has grown exponentially as a hot topic in recent years. However, the idea of privacy has always been on the minds of Californians. As far back as 1972, the citizens voted to add privacy to the state’s constitution as an inalienable right. So, it’s not surprising that as the digital age progresses, residents of California want more protection. The California Consumer Privacy Act (CCPA) started as a petition with over 600,000 signatures.

As a business lawyer in San Francisco, attorney James Braden knows business owners are likely to have questions. As impactful as this law can be, it doesn’t include all businesses. Here, we’ll discuss how CCPA is defined and what that will mean for your company.

What is the CCPA?

Before we get deeper, let’s go over the basics. In 2018, the state statute was signed into law as a way for the private information of consumers to be protected. This gives consumers more control of the data collected by businesses. Two years later, voters approved a proposition that ushered in more coverage as the law was expanded upon. This is an overview of what consumers have a right to under the Act:

• Refusing the sale of private info
• Access to their collected data
• Knowledge of what info is collected
• Be informed if their data is shared and to whom
• Have personal data removed from business records
• Not be treated differently for enacting these rights

Who does it protect?

California consumers and their data are the focus of protection. Businesses collecting consumer data will need to be more transparent with both what information they are keeping and what they plan to do with it. CCPA ensures California customers get fair and equal treatment no matter what they decide about their info.

Why is it required?

Consumers should have the right to opt out of sharing their data. Until now, that personal information could have been stored and sold for profit, not knowing how that could influence companies or their campaigns. Now, companies around the world who meet the criteria of CCPA will be required to keep California consumers up to date. A San Francisco business attorney can help work with companies to restructure their privacy policy and make sure they are in compliance.

How does it affect your California business?

The Act has an impact on all businesses who operate in California and either: has a minimum of $25 million in annual gross revenue, collects personal info on at least 50,000 residents of California, or gets more than half of the company’s revenue from selling that information. A business litigation attorney San Francisco can give you more specific details on individual circumstances.

When it comes to learning more about who is paying for products or services, CCPA can bring about new challenges for businesses. Such data can not only help a company learn more about who is patronizing them but also how to market to them. Since they won’t have buying data as a backup, this will be a catalyst for companies to head in a different direction in regards to learning about their consumers. San Francisco CA business attorney can work directly with a business to provide legal insight.

If your business is located or operating in California, it would behoove you to have a conversation with a San Francisco business litigation attorney. Finding out your company falls under the jurisdiction of CCPA and that you have not been following the regulations could result in fines or worse. Whether you are unsure if CCPA applies to your business or you need more information, call a business attorney in San Francisco to get clear and avoid future issues.