If you have a startup business headquartered in California, or even simply has a“presence” in California, then you need to be prepared to comply with the California Consumer Privacy Act (CCPA). The CCPA was fully enacted into law in 2020 and applies to a variety of business entities (including startups) that collect the personal information of California consumers.
The Objective
The CCPA was designed to make businesses in California more transparent in how they collect and use consumer data. The Act requires qualifying businesses to implement policies and procedures to protect the personal information of their consumers.
Under the CCPA, businesses must disclose the categories of personal information that they will collect at or before the point of collection of consumer data.
The CCPA, which is intended to protect the privacy rights of consumers within the State of California, may require your business to make significant changes to your data privacy and collection practices.
How to Navigate the Rules and Regulations of the California Consumer Privacy Act
Commencing in 2023, the CCPA will begin applying to startups and other companies that derive at least 50 percent of revenue from selling or sharing the personal information of California consumers.
For other business owners, the statutory test for determining whether your business is subject to the CCPA includes the following prerequisites:
- Your business’ annual revenue is at least $25 million;
- Your business purchases, sells, or discloses the personal information of over 50,000 California residents, households, or devices in the state within the same year; and
- Your business derives at least 50 percent of your annual revenue from selling the personal information of your California-based consumers.
It is also important to point out that if your business purchases, sells, or collects the personal information of California residents, you may be subject to the CCPA even if your business is headquartered in a completely different state.
Personal Information Under the CCPA
If your business is subject to the CCPA, you will need to organize consumer data using the following categories of “personal information” which are set forth in California Civil Code Section 1798.140:
- Identifiers
- Information about protected characteristics
- Any information that falls under the description of “personal information” in Civil Code Section 1798.80
- Geolocation information
- Biometric information
- Commercial information
- Internet-related information, including search history
- Audio, visual, electronic, olfactory, or thermal information
- Education information that is not available to the public
- Employment information
- Any information used for profiling
Have Questions About the CCPA? Speak to an Experienced Business Attorney in Los Angeles Today
If you have questions about how to effectively navigate and comply with the rules and regulations codified within the California Consumer Protection Act, contact the highly reputable and experienced Hakim Law Group.Our law firm stands ready to help small business owners and entrepreneurs. Our team of skilled and highly reputable business attorneys have worked in top tier international law firms and served as general counsel to major companies. This high level of diverse legal and business experience is paramount to our boutique approach – which produces more efficient, responsive and, ultimately, more effective results. For further information or to schedule an appointment with a leading business attorney in Los Angeles please contact HLG at 310.993.2203 or visit www.HakimLawGroup.com to learn more.
