Understanding CCPA Compliance
Most businesses that handle data of their clients tend to ensure that the information is secured. With the increasing demand for consumer privacy, a number of acts have been set to ensure that the data of clients are safeguarded. The following is what you need to know about the California Consumer Privacy Act. CCPA is a consumer privacy law that regulates how companies handle customer information. Besides, the act focuses more in empowering consumers with their new rights to help in protecting their privacy. The beauty of the California Consumer Privacy Act is that it encourages businesses to practice transparency in their operations and also provide consumers with a certain amount of control over their personal information with the aim of reducing misuse.
Here are the key components of CCPA. Business that are CCPA compliant are subject to the key components of the act which include creating an extended definition of personal information, creating new data privacy rights for residents of California, creating a new statutory damages framework in California, as well as introducing new regulations when children`s personal data is used.
One of the questions most people tend to ask about CCPA involves the businesses that have to comply. It can be a mistake to assume that every business has to comply with the set act. When it comes to CCPA compliance, it is only profit entities that conduct businesses in California and which meet one of the following conditions. Some of the minimum conditions that businesses that want to be CCPA compliant need to observe include the following, first a company has to generate over twenty-five million dollars in annual gross revenue. Furthermore, for a business to be CCPA compliant it needs to collect, share, buy or sell the data of at least fifty thousand consumers. If you run a business in California and you want to make it complies to the California Consumer Privacy Act, you need to make sure that the business makes at least fifty percent of its revenue from the sale of personal information.
In addition, businesses in California need to be up to date with the new rights under CCPA. The following are some of the new consumer right for residents of California. When you are a California resident, you are entitled to the following new rights under CCPA, these include right to know, right to equal service and price, right to access, right to erasure, right to opt-out, and special protection to minors.
Under the right to know, businesses must notify client what personal information is being collected about them, how it’s being collected and used, as well as whether and to whom it’s disclosed or sold. In the event of a disclosure, business need to do it through a publicly posted privacy notice, and specifically upon request by a consumer. Therefore, businesses that want to know much about the California Consumer Privacy Act need to pay attention to the contents of this article.