The California Consumer Privacy Act (CCPA) is a comprehensive privacy law that came into effect on January 1, 2020, in the state of California, USA. It grants California residents certain rights regarding their personal information and places obligations on businesses that collect, use, and share such data.
The CCPA aims to provide consumers with more control over their personal information and increase transparency in how businesses handle their data. It applies to companies that meet certain criteria, such as those that do business in California, have annual gross revenue above a specific threshold, or handle large amounts of consumer data.
Key components of CCPA
The key components of CCPA are as follows:
- Consumer rights: The CCPA grants California residents several rights concerning their personal information. This includes the right to know what data is collected, used, and shared about them, the right to delete their data, and the right to opt-out of the sale of their information.
- Data collection limitations: The CCPA restricts businesses from collecting more data than is necessary for the stated purpose. It also prohibits the collection of sensitive personal information, such as social security numbers, without explicit consent.
- Opt-out of sale: Consumers have the right to opt-out of the sale of their personal information to third parties. Businesses must provide a prominent "Do Not Sell My Personal Information" link on their websites to facilitate this opt-out.
- Non-discrimination: The CCPA prohibits businesses from discriminating against consumers who exercise their privacy rights. This means that businesses cannot deny goods or services, charge different prices, or provide a lower quality of service to users who choose to exercise their privacy rights.
- Data security and breach notification: Businesses must implement reasonable security measures to protect consumer data from unauthorized access and data breaches. In the event of a data breach, businesses are required to notify affected consumers.
- Minors' privacy: The CCPA requires businesses to obtain affirmative consent (opt-in) before selling the personal information of consumers under the age of 16. For children under 13, parental consent is required.
- Data collection categories: Provide a comprehensive list of the categories of personal information collected, such as names, email addresses, physical addresses, browsing history, geolocation data, etc.
- Purposes of data collection: Clearly state the specific purposes for which the collected data will be used, including service delivery, marketing, analytics, or any other relevant purposes.
- Right to know: Inform consumers about their right to request information about the personal data collected and its sources, as well as the categories of third parties with whom the data is shared.
- Right to delete: Explain consumers' right to request the deletion of their personal information held by the business.
- Right to opt-out of sale: Notify consumers of their right to opt-out of the sale of their personal information to third parties.
- Non-discrimination: Include a statement that the business will not discriminate against consumers for exercising their CCPA rights.
- Contact information: Provide clear contact details (toll-free number or website link) for consumers to submit privacy-related inquiries and requests.
- Notice accessibility: Ensure the notice is easily accessible, prominently displayed, and available in multiple languages if the business caters to non-English-speaking consumers.
- Updates to the notice: Specify how any material changes to the notice will be communicated to consumers.
- Effective date: Clearly state the effective date of the notice.
Who Must Comply With CCPA?
- For-profit businesses that collect and control consumer data.
- Businesses with an annual gross revenue exceeding $25 million.
- Businesses of any size that buy, sell, or share consumer data.
2. Service providers
- Companies that process consumer data on behalf of businesses.
- Service providers that handle personal information on behalf of covered businesses must comply with CCPA regulations.
3. Third-party businesses
- Any entity that receives personal information from CCPA-covered businesses for business purposes is subject to compliance.
4. Non-profit organizations
- Non-profit entities that meet the revenue and data criteria outlined in the CCPA must also comply with the regulations.
5. Joint ventures & affiliates
- Joint ventures or affiliates sharing consumer data with covered businesses are required to adhere to the CCPA.
6. Businesses operating in California
- Any business that operates in California, regardless of its location, must comply with the CCPA if it meets the criteria.
7. Entities collecting data from minors
- Businesses that collect personal information of consumers under the age of 16 must comply with additional CCPA rules.
8. Online & offline activities
- Businesses engaged in both online and offline data collection fall under CCPA's scope if they meet the qualifying criteria.
CCPA vs. Other Data Privacy Law Requirements
- CCPA: Applies to businesses collecting and selling personal information of California residents, regardless of business location.
- GDPR (General Data Protection Regulation - EU): Applies to businesses processing personal data of individuals within the European Union, regardless of business location.
- LGPD (Lei Geral de Proteção de Dados - Brazil): Applies to businesses processing personal data of individuals in Brazil, regardless of business location.
2. Consumer rights
- CCPA: Provides the right to know, delete, and opt-out of the sale of personal information.
- GDPR: Provides rights such as the right to access, rectify, erase, restrict processing, and data portability.
- LGPD: Provides rights similar to GDPR, including the right to access, correct, delete, and data portability.
- CCPA: Does not require explicit consent for data collection; allows opt-out for data sales.
- GDPR: Requires explicit consent for data processing; strict consent rules for sensitive data.
- LGPD: Requires specific and informed consent for data processing.
4. Data transfer
- CCPA: Focuses on the sale and disclosure of personal information to third parties.
- GDPR: Regulates cross-border data transfers with specific requirements for data exporting outside the EU.
- LGPD: Allows data transfers to countries with an adequate level of data protection.
5. Fines and penalties
- CCPA: Penalties for non-compliance can range from $2,500 to $7,500 per violation.
- GDPR: Fines can reach up to 4% of global annual turnover or €20 million, whichever is higher.
- LGPD: Fines can be up to 2% of the company's revenue in Brazil, capped at BRL 50 million per violation.
6. Applicability to non-residents
- CCPA: Protects California residents' data, irrespective of their citizenship or residency.
- GDPR: Applies to all individuals within the EU, regardless of their nationality or residency.
- LGPD: Protects personal data of individuals within Brazil, irrespective of nationality or residency.
7. Data protection officer (DPO) requirement
- CCPA: Does not require a designated DPO.
- GDPR: Requires appointing a DPO for certain data processing activities.
- LGPD: Requires appointing a DPO for large-scale data processing or sensitive data handling.
These are some key differences between the CCPA, GDPR, and LGPD data privacy law requirements. Each law has its unique focus and scope, but they all aim to protect individuals' personal data and ensure businesses handle data responsibly and transparently.
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