The California Consumer Privacy Act (CCPA) is a state-level privacy law that grants California residents enhanced rights over their personal information held by businesses. Enacted in 2018 and effective since January 1, 2020, the CCPA aims to provide transparency and control to consumers regarding how their personal data is collected, used, and shared.​

Key Provisions of the CCPA

The CCPA grants California residents the following rights:​

1. Right to Know: Consumers can request that businesses disclose the categories and specific pieces of personal information collected about them, the sources of that information, the purpose for collecting it, and the categories of third parties with whom the information is shared.​

2. Right to Delete: Consumers can request the deletion of personal information that a business has collected from them, subject to certain exceptions.​

3. Right to Opt-Out: Consumers can opt out of the sale of their personal information to third parties.​

4. Right to Non-Discrimination: Businesses cannot discriminate against consumers for exercising their CCPA rights, such as by denying services or charging different prices.​

Applicability

The CCPA applies to for-profit businesses that collect personal information of California residents and meet at least one of the following criteria:​

• Have annual gross revenues exceeding $25 million.​

• Buy, receive, or sell the personal information of 100,000 or more California residents, households, or devices.​

• Derive 50% or more of their annual revenues from selling California residents' personal information.​

Compliance Obligations for Businesses

Businesses subject to the CCPA must:​

• Provide Notice: Inform consumers at or before the point of data collection about the categories of personal information collected and the purposes for which they will be used.​

• Respond to Consumer Requests: Establish procedures to respond to consumer requests to know, delete, or opt out, including providing a "Do Not Sell My Personal Information" link on their website.​

• Update Privacy Policies: Include detailed information about consumers' rights under the CCPA and how to exercise them.​

• Train Employees: Ensure that staff handling consumer inquiries about privacy practices are knowledgeable about the CCPA requirements.​

Enforcement and Penalties

The California Attorney General enforces the CCPA. Businesses found in violation may face civil penalties of up to $7,500 per intentional violation and $2,500 per unintentional violation if not remedied within 30 days of notice. Additionally, the CCPA provides a private right of action for consumers in the event of certain data breaches, allowing them to seek statutory damages between $100 and $750 per incident or actual damages, whichever is greater.

Frequently Asked Questions (FAQs)

What is considered "personal information" under the CCPA?

• Personal information includes data that identifies, relates to, describes, or could reasonably be linked with a particular consumer or household. This encompasses identifiers like names, addresses, email addresses, social security numbers, purchase histories, browsing histories, geolocation data, biometric information, and more.​

Are non-profit organizations subject to the CCPA?

• No, the CCPA applies specifically to for-profit businesses that meet certain criteria. Non-profit organizations are generally exempt unless they control or are controlled by a business subject to the CCPA and share common branding.​

How does the CCPA define the "sale" of personal information?

• The CCPA defines "sale" broadly to include selling, renting, releasing, disclosing, disseminating, making available, transferring, or otherwise communicating a consumer's personal information to another business or third party for monetary or other valuable consideration.​

What steps should a business take if it receives a consumer request under the CCPA?

Upon receiving a verifiable consumer request, businesses must:​

• Confirm receipt of the request within 10 business days.​

• Respond to the request within 45 calendar days, with a possible 45-day extension when reasonably necessary.​

• Provide the requested information covering the 12-month period preceding the request.​

Can businesses offer financial incentives for the collection or sale of personal information?

• Yes, businesses can offer financial incentives, such as discounts or other benefits, for the collection, sale, or retention of personal information. However, they must clearly describe these incentives and obtain the consumer's opt-in consent. Importantly, the incentives must be reasonably related to the value of the consumer's data.​

How does the CCPA interact with other privacy laws like GDPR?

• While both the CCPA and the European Union's General Data Protection Regulation (GDPR) aim to protect personal data, they have different scopes, definitions, and requirements. Businesses subject to both laws must ensure compliance with each, addressing the specific obligations and rights granted under both frameworks.​

What is the "Do Not Sell My Personal Information" link?

• Businesses that sell personal information must provide a clear and conspicuous link on their homepage titled "Do Not Sell My Personal Information." This link should direct consumers to a webpage where they can opt out of the sale of their personal information.​

Are small businesses exempt from the CCPA?

• Small businesses may be exempt if they do not meet the specified thresholds (e.g., annual gross revenues over $25 million, handling data of 100,000 or more consumers). However, they should assess their data practices to determine applicability.​

What are the consequences of non-compliance with the CCPA?

• Non-compliance can result in civil penalties imposed by the California Attorney General, including fines up to $7,500 per intentional violation. Additionally, consumers may bring