5 Main Differences Between GDPR And CCPA

 Currently California is taking significant steps to strengthen consumer rights by enacting the California Consumer Privacy Act (CCPA). Meanwhile, we know that the European Union has also set a new standard for their data privacy, namely the General Data Protection Regulation (GDPR). Then what are the Main Differences Between GDPR and CCPA?

1. Consumer Privacy

The first difference between GDPR and CCPA lies in consumer privacy. According to the GDPR, processing personal data is illegal unless justified under one of six valid criteria. The CCPA doesn't actually prohibit data processing, but only requires consumers to have a way to opt-out. The legal bases underlying these two regulations reflect a fundamental difference in the way Europeans view privacy as a fundamental human right rather than a consequence of negotiable business relationships.

2. Definition of Personal Information

The GDPR defines personal data as “information relating to an identified or identifiable natural person (data subject).” In addition to personal information, the GDPR defines pseudonymous data, which is data that has been processed in such a way that it can no longer be attributed to a specific data subject without additional information being used. It also defines sensitive data, specific types of personal data that require extra attention, data consisting of race or ethnicity, political opinions, religious or philosophical beliefs, trade union membership, genetic data, biometric data, data regarding health, or data regarding life. natural person's sex or sexual orientation.

The CCPA provides a broader definition, namely "Information that identifies, relates to, describes, is capable of being associated with, or can reasonably be linked, directly or indirectly, to a particular consumer or consumers." CCPA provides protection to both consumers and individuals, and does not distinguish between pseudonyms and sensitive data. This broader definition can include information such as search history, clickstream data, or location.

3. Businesses That Must Comply

The GDPR applies to all businesses that process EU citizen data, regardless of location or size. The CCPA is slightly narrower in scope. The CCPA only applies to California-based businesses with revenues above $25 million USD or those whose primary business is the sale of personal information.

4. Financial Sanctions

The GDPR mandates penalties for non-compliance and data breaches, which can amount to up to 4% of a company's annual global turnover or 20 million euros, with a commitment that administrative levies will be applied proportionately.

CCPA fines apply per violation (up to a maximum of $7,500 USD per violation), are not capped and there appear to be no penalties for non-compliance. But the CCPA allows consumers to sue businesses for violations. Meanwhile, the GDPR can apply sanctions where companies are deemed to be at risk of violating or being irresponsible.

5. Consumer Rights

Both regulations give consumers special rights such as the right to delete or access information. The GDPR specifically focuses on all data related to consumers/EU citizens whereas the CCPA considers the consumer as an identifiable entity and, in some cases, only considers data provided by the consumer as opposed to data sourced or purchased from a third party. It is important for businesses to test their processes to ensure they can accommodate these rights.

Conclusion

So What's the Difference between GDPR and CCPA? In simple terms the CCPA places disclosure requirements for the collection, sale and sharing of personal information. Whereas the GDPR places disclosure requirements and limits the collection and processing of personal data. But both CCPA and GDPR can protect consumers or data subjects wherever they are.