Why Being CCPA Compliant is Vital
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.
The following are the key components of the 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.
It can be challenging knowing who has to comply with the CCPA. It can be a mistake to assume that every business has to comply with the set act. The fact is that the privacy law only applies to profit entities that operate in California only and meet the following conditions. One of the conditions that businesses have to pass if they want to be CCPA compliant is by generating over twenty-five million dollars in annual gross revenue. The other criteria that businesses need to observe if they want to be CCPA compliant is by collecting, sharing, buying or selling 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. Here are some of the new consumer right that targets California residents. The new rights 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.
The right to know specifies that businesses need to inform their clients on 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. Besides, in the event of a disclosure, it needs to be through a publicly posted privacy notice, and specifically upon request by a consumer. When you read this article, you will understand what the California Consumer Privacy Act is all about.