Learn how to best comply with CCPA and other new privacy laws.
On January 1st, 2020 the California Consumer Privacy Act (CCPA) went into effect. As stated by the Attorney General, this act “creates new consumer rights relating to the access to, deletion of, and sharing of personal information that is collected by businesses.”
Similar laws are expected to follow in other states. The intent of the law is to force certain businesses to inform consumers about the classes of personal information they collect, the methods they use to collect it, and how the personal information is utilized. In addition, the law allows consumers to demand to see their own personal information on file or, in some cases, to demand that their personal information be deleted from business databases or withheld from sale to third parties.
“The biggest dangers to your business are the law’s provisions allowing consumers to sue, individually or in class action, even without proof that they have suffered any damages.”
This sounds simple, but of course, it is not. You will probably need an attorney’s help just to determine whether the law applies to your business — and, if it does, whether the law designates you as a “data controller” or a “service provider.”
Regardless of your physical location, if your business ever interacts with California consumers, you may need to present your personal information policies to them on your website; offering at least two methods, including a toll-free number for them to submit questions or demands. Before you provide a report to them or delete their data, you must (somehow) verify that they are who they say they are (perhaps collecting even more personal information in order to do so).
The biggest dangers to your business are the law’s provisions allowing consumers to sue, individually or in class action, even without proof that they have suffered any damages. The Attorney General can also file legal action against a business for failures to comply– and the penalties can be massive, particularly in the case of a security breach involving consumer personal information.
To learn more about the CCPA and how it may affect your business practices, you can read more details on the Attorney General’s website.
The information in this article is not intended as legal advice. The author strongly recommends that any business concerned about complying with the new consumer privacy laws promptly consult with legal counsel.
