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Jan 22nd 2020

What is the California Consumer Privacy Act (CCPA)?

The beginning of 2020 has seen its fair share of news developments, but one new law has been on the minds of California businesses, marketers and consumers.

The CCPA (aka: The California Consumer Privacy Act) is a new law that was first enacted by California state lawmakers in 2018. It went into effect on January 1st.

The act essentially gives California residents new rights to access, request deletion of and sharing of their personal information by businesses.

If you’re a marketer or list owner, this means EVERY California consumer has the right to ask you what you’re doing with their personal information. Think of it as the 3 W’s: What data are you collecting? Why are your collecting it, AND what are you going to do with it?

Why was the CCPA created?

Here’s the short list: Alexa, Google, Facebook, Instagram, online directories, retargeting ads, online forms, digital listing companies, website publishers….and, so on…

In this digital age, more and more companies, particularly digital marketers and tech companies, are capitalizing on the ability to segment people to promote their products and services.

Have you ever received that postcard in the mail and thought: How did they get my information? Or, been served an online ad for new shoes, knowing you haven’t visited a shoe website in a week? What about your Facebook Newsfeed? How often are you served an ad based on your likes, interests and location?

More and more businesses have access to personal information than ever before, meaning new laws are being enforced to protect personal information and who gets access to it.

Under the CCPA, the state of California is required to follow new procedures that help support these new consumer rights, ensuring personal information stays protected while holding businesses accountable.

This new privacy protection law is official, so if you aren’t compliant or aren’t sure if you’re required to comply, now’s the time to brush up on your CCPA knowledge.

What do I need to do to comply with CCPA?

Luckily, the state of California has made it relatively easy for businesses to become compliant. Here’s what you should do, FIRST: Check your current website privacy policy.

Most companies will have to update the language of their privacy policy in order to comply with CCPA.

In short, make yourself a checklist.

If you’re still unsure about compliancy, you can always contact one of our experienced representatives.

More states are expected to follow…

California is first, but it won’t be the last. It’s predicted that by 2025, more states are expected to sign similar legislation into law. This means every consumer in the US will have the right to know what you’re doing with their personal information.

This trend in extending privacy protection started with the GDPR, the European Unrion’s General Data Protection Regulation. Like the CCPA, the GDPR gives EU citizens similar rights, but is stricter regarding how companies handle data privacy.

It’s not a matter of ‘if’ but a matter of ‘when’ so now’s the time for your business to take a proactive approach.

  • Does your business generate more than $25 million in annual gross revenue?
  • Is more than 50% of your revenue generated from the sale of California residential data?

Or

  • Do you process the personal data of more than 50,000 California residents?

If you answered ‘yes’ to any of these questions, you will be required to become CCPA compliant. Even Facebook has taken steps to informing their fans about this new privacy law.

The DOJ estimates that the California Consumer Privacy Act will affect over 400,000 businesses.

If you’re part of that statistic, think of the CCPA as further protection for your consumers, their information, and your reputation.

Helpful Resources:

The Full CCPA text

How Do I Comply with CCPA?

Does a list owner already have my personal data?

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