For any startups based in California or selling products/services to those in California, it is vital that you understand and comply with the CCPA - the California Consumer Privacy Act.
This is a state-wide data privacy law that offers regulation in terms of how companies all over the world are able to handle the personal information of residents in California.
Representing the first law of its kind in the United States, no start-up can afford to ignore this piece of legislation. With that being said, below, we are going to reveal everything you need to know about CCPA compliance and how to implement it.
There is only one place to begin, and this is by explaining what CCPA compliance is. The California Consumer Privacy Act gives customers greater control over the personal information that companies collect about them.
The landmark legislation gives consumers in California the following privacy rights:
You may sometimes see the abbreviation ‘CCPA’ and ‘CPRA’ used interchangeably. This is because a recent update has seen the CPRA replace the CCPA. Osano's guide to the CPRA is a good place to find out more information about this.
The California Consumer Privacy Act of 2018 was replaced by the California Privacy Rights Act of 2020. There are some requirements that remained the same, whereas others were changed.
When we talk about CCPA compliance, we also mean complying with the newest CPRA regulations. You can't simply pick and choose.
As the CCPA provides users with greater control over their data, a lot of the regulations cover the many in which companies gather and distribute private information that is collected via their website and other digital methods.
Users will contact the company and ask for information about their data usage and storage, and businesses need to comply with certain requests. This includes requests from users for the following:
Aside from this, businesses need to take action if the user requests the following:
Before we reveal some of the different ways you can ensure CCPA compliance, let’s take a look at who needs to comply with CCPA so you can determine whether or not this is relevant to your business.
Any company that gathers data on Californian residents (even if it’s just one!), needs to make sure they are compliant.
Professionals believe that these regulations are going to drive similar laws in other states in the United States as well, ensuring users have more control over their data. Therefore, this is only the beginning when it comes to user privacy.
If you do not work with California data at the moment, you should still track the details relating to CCPA so you can fully comprehend the regulations and what is likely to be expected of you in the near future.
When cybersecurity is involved, CCPA compliance can be complicated and convoluted. However, there are some steps that you can follow to make sure that your new business does not fall foul of the law when it comes to data security.
Yes, there are! You will not simply get off with a slap on the wrist if you do not adhere to the CCPA regulations that are in place. After an audit has been carried out, you may receive a notice that your systems are not compliant. If this is the case, you will have 30 days to fix the issue. If you do not, you could have a $7,500 fine to pay for every issue.
Furthermore, for every data breach, users will be able to seek $750 in damages. However, this is the only beginning. You will have to spend a considerable sum of money on getting to the bottom of the issue and rectifying it.
If that was not enough, your reputation could end up in tatters. Customers will no longer trust your business anymore. Trust takes years to build but only a matter of seconds to be ruined. This is something that no start-up can afford, which is why we have seen many shut their doors permanently after a data breach.
Did you know that 60 percent of small businesses permanently close within six months after falling victim to a cyber-attack or data breach?
Don’t cut corners when it comes to CCPA compliance
We hope that this guide has helped you to get a better understanding of CCPA compliance so that you can make sure your start-up adheres to the rules that are in place.
User privacy and data security are not areas whereby any business can afford to cut corners. If your business was found to be non-compliant, the fines alone would be enough to cripple a small business and force them to close its doors.
With that being said, follow the tips and advice that we have provided above to make sure that your business achieves CCPA compliance effectively.
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