Is CCPA applicable to your business?
Introduction
The California Consumer Privacy Act (CCPA) is a data regulation law which regulates how companies and entities handle the personal data of the residents of California. This came into effect on 1st January 2020 and is a first of its kind law in the United States. The CCPA is hence also dubbed as Califirnia’s GDPR. This prompted all the companies in the US to follow the regulations and update their privacy policies as required. As estimated, the implementation of CCPA affected thousands of businesses who were collecting the personal data of approximately 40 million Californian citizens. The Californian Attorney General’s office is primarily responsible for the enforcement of CCPA on behalf of the California’s residents.
The CCPA follows these principles:
Right to access.
Right of notice.
Consent.
Right to opt-out.
Equality.
Right to deletion.
How to find out if CCPA is applicable to you?
The CCPA in general is applicable on any profit making business in the state of California which is collecting or processing personal data of the residents of California.
The exact determinants are as follows:
If the annual turnover of the company is approximately $25 million or more.
If the company is holding the data of fifty thousand or more consumers/devices.
If the company is earning the major half of its revenue by processing personal information of the citizens.
The CCPA is also applicable on organisations, bodies who own the company or even share a common trademark or branding, thus ensuring a wider jurisdiction.
How can you ensure CCPA compliance?
Even if a company is not based in California these laws might still apply to them if they are handling the personal data of the citizens of California.
Here are some steps you can take to ensure your compliance with the laws:.
Know how the CCPA affects your organisation
The CCPA is applicable to California residents and not on legal persons such as private businesses or governments. The Law mandates that the people know what data is being collected from them. The first thing to do is to understand how this applies to your organisation.
Structure your collected consumer data
You can start by finding the answers to these questions, what data is being collected, how it is being collected, where it is being stored, who else has access to this data, are any other parties also having a share of this collected data. An organisation must be able to answer these basic questions regarding the collection of data. If your data is being handled by third parties then they also need to give you the answers to the above questions.
Provide a simple-understandable privacy policy disclosure
This must mention the kind of data your organisation collects, how you gather this information, if the data will be shared with third parties, and why is your organization collecting this data. Keep updating this privacy policy notice from time to time.
Allow customers to decline
You must gain consent of your customer before selling their data, they must have an option to deny.
Have a structure on how you will manage customer requests
The CCPA requires you to provide information to a customer if requested within a timespan of 45 days without any charges. You must be able to provide copies of personal information, delete data on request, explain how the data is being used, exclude persons under the age of 16, receive the guardian’s consent for consumers under the age of 13.
Keep your software systems updated
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Is CCPA applicable to your business?
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