If you own a business in California, get ready to comply with a newly enacted set of regulations governing the privacy rights of consumers to certain types of data. The legislation, known as the California Consumer Privacy Act (CCPA), is a major piece of privacy legislation that could have more repercussions on U.S. companies and businesses than the landmark General Data Protection Regulation (GDPR) that went into effect in the European Union.
Impact of the California Consumer Privacy Act
The CCPA enables any California consumer to view all the information a company has saved on them, as well as a full list of all the third parties that data is shared with. In addition, the new law enables consumers to file lawsuits against companies if these privacy guidelines are violated, even if there is no breached.
Companies Impacted by the CCPA
If you own a small business, you may be exempt from many of the major requirements of the CCPA. The new law impacts any company that (i) serves California residents and (ii) has at least $25 million in annual revenue.
However, companies of any size, including small businesses, that (i)possess the personal data of at least 50,000 consumers or (ii) collect more than half of their revenues from the sale of personal data, must also adhere with the new law. In addition, the CCPA extends to companies that are not actually based in California. The CCPA even extends to international corporations that do business in the United States.
Insurance Companies Exempt from CCPA
Insurance institutions, insurance agents, and related support organizations are exempt from the CCPAsince these entities and individuals are already subject to similar privacy regulations under California’s Insurance Information and Privacy Protection Act.
Estimated Economic Impact of the CCPA
According to California’s Department of Finance, companies with fewer than 20 employees are expected to pay around $50,000 when the CCPA first goes into effect in 2020in order to become compliant.
However, companies with more than 500 employees are expected to have to pay, on average, at least $2 million in initial compliance costs. Researchers have estimated that California companies will need to pay around $55 billion in compliance costs. The Department of Finance stated that the $55 billion in compliance costs is the equivalent of close to two percent of California’s Gross State Product in 2018.
Contact a Los Angeles Business Attorney to Get Compliant with the CCPA
If you own a business in California, now is the time to take action by scheduling a meeting with a reputable business law attorney in Los Angeles such as Afshin Hakim of Hakim Law Group. A leading and highly experienced business attorney who can help advise you of the necessary steps needed to become CCPA compliant. To schedule an appointment please contact HLG at (310) 993-2203 or for further information visit www.HakimLawGroup.com.