Many consumers have grown frustrated and skeptical of large companies and social media platforms neglecting to take necessary measures to protect their personal data. As a result, states are taking action to help fill the void. California is a prime example. The California legislature passed one of the most comprehensive privacy laws in the country, the California Consumer Privacy Act (“CCPA”). This legislation is set to take effect on January 1, 2020; however, the actual enforcement of the law will not begin until July 1, 2020.
Key Provisions of the CCPA
The overarching objective of the CCPA is to empower consumers to control and manage their personal data. This is accomplished by establishing the following rights and protocols for personal data:
- If a business is planning to collect personal consumer data, they are now legally obligated to notify consumers.
- Consumers have the right to know what personal information a business has collected on them, where the data came from, how it will be utilized, and with whom it is being shared.
- Consumers have the right to prevent businesses from selling their personal data to third party companies (e.g., data aggregators, marketing companies, etc.).
- Consumers can request that a business remove their personal information.
- Businesses are prohibited from charging consumers different prices or refusing service, even if that consumer decided to exercise their privacy rights pursuant to the CCPA.
Large Tech Company Embraces the CCPA
Microsoft Corp. announced it will extend the “core rights” codified in the CCPA to customers across the country. The company also called for legislators in Congress to go further than the state provisions. This is on the heels of multiple tech companies and trade groups issuing a call for a national privacy law that would coordinate rules across multiple jurisdictions and, as a result, supersede and preempt state statutes like the CCPA. Microsoft previously extended the new privacy rules established by the EU across the globe.The Chief Privacy Officer at Microsoft announced that the company both supports a federal privacy law but is not opposed to multiple states passing various privacy laws.
Tips to Prepare Your Business to Comply with the CCPA
If you own a business in or around Los Angeles, now is the time for action. Below is a list of suggested actions you can take to help ease the potential regulatory burden associated with the CCPA and achieve compliance:
- Evaluate your current capabilities by identifying and classifying personal data.
- Review your company’s data-governance capabilities.
- Analyze your company’s privacy controls.