The use, management, and maintenance of personal information by companies has received significant attention, and even national headlines, due to multiple states enacting consumer data privacy laws. California took center stage with the passage of the California Consumer Privacy Act (“CCPA”) in 2018, followed by the California Privacy Rights Act (“CPRA”) in 2020.
This is why, as a business owner operating in or around Los Angeles, you need to invest the time and resources to properly draft a privacy policy for your business. This privacy policy needs to provide a clear explanation to consumers on how your business collections their personal data, how it is stored, and how it is used (including if you sell consumer data to third parties).
Why is a well-drafted privacy policy so important? Because the way you draft your privacy policy can have legal and financial ramifications. Hence, it is in your best interest to have a skilled and knowledgeable business lawyer in Los Angeles review your policy prior to making it available to consumers.
Complying with the CCPA
In 2018, California residents voted in favor of enacting the CCPA, a privacy law that enables any California consumer to demand access to any personal information a company has on them. In addition, the CCPA enables a consumer to demand a full list of all the third parties that have received their personal information from your company. If a business in California violates the CCPA, it allows a consumer to file a civil lawsuit against the offending business.
It is important to note that the CCPA does not apply to every company in California. Instead, the law only impacts companies that (i) serve California residents and (ii) have at least $25 million in annual revenue. In addition, companies of any size that maintain personal data on at least 50,000 people or that collect more than half of revenue from the sale of personal data, also must comply with the CCPA.
Complying with the CPRA
In 2020, California enacted a subsequent piece of privacy legislation that augmented the CCPA, including additional regulatory requirements that must be followed by California business owners.
For example, the CPRA expanded the applicability of the CCPA to businesses that generate a majority of their revenue from sharing personal information, not just selling that information. The CPRA augments the initial privacy law by creating a new category of protected data, specifically “sensitive personal information.” This new category of consumer data also features additional disclosure requirements and purpose limitation requirements that must be followed by California businesses.
Need Guidance on How to Draft an Effective Privacy Policy for Your Business? Contact Hakim Law Group Today
If your business needs guidance on how to draft a legally-compliant privacy policy in California and the complexities of these new rules and regulations, take action by contacting a leading business lawyer in Los Angeles -Afshin Hakim of The Hakim Law Group. Our legal team is comprised of professional, trusted and reputable business attorneys who are ready and able to assist you get your business on the right track. For further information or to schedule a consultation please contact HLG at 310.993.2203 or visit www.HakimLawGroup.com to learn more.
