What Is CCPA And Why Should We Care

 As we know California is a very big state. With a population of nearly 40 million, it will have the fifth largest economy in the world after the United States, China, Japan and Germany. With that much power, will California influence the world. On January 1, 2020, many businesses will begin to feel the effects of the California Consumer Privacy Act (CCPA). Then what is CCPA?

What is CCPA

The California Consumer Privacy Act (CCPA) is a comprehensive privacy law created by the state of California. Targeted at companies that collect or sell personal information, it provides California residents with increased privacy rights and consumer protection. This gives Californians significant rights around their data.

Data Protection Introduced by CCPA

1. Right to access information – Consumers in California will be able to know the “what, who, and why” around their personal information. In particular, they may request the following data:

+ Which categories of information are collected and sold

+ From whom is this information collected, with whom is it shared, and to whom is it sold

+ Why it is collected

2. Right to erasure – Consumers in California will be able to ask companies to delete personal information that has been collected about them.

3. Right to opt-out – Consumers in California will be able to direct companies not to sell their personal information to third parties.

Does Every Company Have to Implement CCPA

No, the CCPA only applies to large companies or those who make selling data a core part of their business. More specifically, there are three types of businesses covered namely companies with gross revenues of more than $25 million, businesses with data of more than 50,000 consumers, and companies that generate more than 50% of their revenue selling consumer data (i.e. data brokers).

What are the Impacts of a Company Not Complying with the CCPA

The CCPA calls for penalties of up to $7,500 for willful misconduct but is dependent on the California Attorney General to enforce this. Meanwhile, individual consumers can sue for $100 to $750 if the company is careless and hacked. However the CCPA also contains a "cure" provision which is 30 days notice to give the company an opportunity to cure the alleged breach and avoid litigation.

Conclusion

So What Is a CCPA? Legislation to enhance privacy rights and consumer protections for California residents. This is a statute of the state of California that was actually passed in June 2018 but went into effect on January 1, 2020.

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