The California Consumer Privacy Act (CCPA) is a comprehensive data privacy law enacted in 2018 and effective as of January 1, 2020, designed to enhance privacy rights and consumer protection for residents of California, United States. Here’s a detailed breakdown:
Key Features of the CCPA
- Consumer Rights
California residents gain control over their personal information (PI) through several rights:- Right to Know: Request disclosure of the categories and specific pieces of PI collected, its sources, and how it is used or sold.
- Right to Delete: Ask businesses to delete their PI, with exceptions for legal compliance, fraud prevention, or completing transactions.
- Right to Opt-Out: Prevent the sale of their PI via a “Do Not Sell My Personal Information” link on business websites.
- Right to Non-Discrimination: Businesses cannot deny services or charge higher prices to consumers exercising their CCPA rights.
- Applicability
The CCPA applies to for-profit businesses that:- Generate $25+ million in annual revenue,
- Buy/sell/share PI of 50,000+ California residents/households/devices annually, or
- Derive 50%+ of annual revenue from selling PI.
Nonprofits, government agencies, and HIPAA-covered health data are exempt.
- Definition of Personal Information
Broadly defined as any data that identifies, relates to, or could be linked to a consumer or household. Examples include:- Identifiers (name, email, IP address, Social Security number),
- Geolocation data,
- Browsing history,
- Biometric data,
- Inferences about preferences or behavior.
Key Differences from GDPR
- Scope: CCPA applies to California residents, while GDPR protects EU residents globally.
- Consent: GDPR requires explicit consent for data processing; CCPA focuses on opt-out rights for data sales.
- Penalties: GDPR fines (up to 4% of global revenue) are stricter, but CCPA allows direct consumer lawsuits.
Amendments and Evolution
- California Privacy Rights Act (CPRA): Passed in 2020, effective 2023, the CPRA expands CCPA by:
- Creating the California Privacy Protection Agency for enforcement,
- Adding protections for sensitive data (e.g., race, health information),
- Requiring data retention limits and enhanced transparency.
Compliance Strategies
Businesses must:
- Map Data: Identify and catalog all PI collected.
- Update Privacy Policies: Disclose data practices and consumer rights.
- Implement Opt-Out Mechanisms: Provide clear “Do Not Sell” options.
- Train Employees: Ensure staff understand CCPA obligations.
- Secure Data: Use encryption and access controls to prevent breaches.
Impact and Trends
The CCPA has influenced other U.S. state laws (e.g., Virginia’s CDPA) and spurred global discussions on data rights. Recent amendments address emerging technologies like connected vehicles, which collect geolocation and biometric data.