The Impacts of CA Consumer Privacy Act (CCPA)
Consumer privacy act for small business

Small businesses will have to address eight specific consumer rights.

 

Editor’s note: this is part one of a two part article.

The California Consumer Privacy Act (CCPA) is not a copycat of the EU’s General Data Protection Regulation (GDPR); instead, it adds another layer of personal information (PI) definitions and requirements that enterprises that employ or deal with California residents must comply with.

Small businesses will have to address eight specific consumer rights, observe restrictions on data monetization models, and update their privacy notices about their data handling practices. The law goes into effect January 1, 2020 and failure to comply could result in penalties that could cumulatively be materially significant. Companies must begin preparing and cataloging their data inventories of all PI pertaining to California residents now to prevent non-compliance costs when the act goes into effect.

The rationale for GDPR was consumer rights in terms of consent, rights of objection and erasure, cross-border transfer, and data breach notification. The California legislature took a very different tack on consumer privacy and emphasized PI disclosure rights, right to opt-out of sale of data, deletion and discrimination rights.

PI Definition and The Eight Consumer Rights

The CCPA expands the definition of PI beyond GDPR and other current U.S. privacy laws. It defines PI as “information that identifies, relates to, describes, is capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household.”

Furthermore, it includes personal identifiers, IP addresses, commercial information, records of personal property, products or services purchased, obtained or considered, or other purchasing or consuming histories or tendencies; Internet or other electronic network activity information, professional or employment-related information; or any consumer profile.

Using those criteria, the CCPA provides California residents/consumers eight exercisable PI rights when dealing with businesses holding their PI.

These eight rights are as follows:

1. Abbreviated Disclosure Right Applicable to Businesses that Collect PI.

This gives the consumer the right to request that business disclose the categories and specific pieces of PI collected about them.

2. Expanded Disclosure Right Applicable to Businesses that Collect PI.

In addition to the above, consumers can also ask for the sources from which the PI is collected, the business or commercial purpose and to whom (i.e., third parties) the collected information was shared. Furthermore, consumers can request the specific notice of the business’ PI collection practices.

3. Right to Request Information from Businesses that Sell or Disclose PI for Business Purposes.

Consumers have the right to request that a business disclose for the prior 12 months the categories of PI collected and sold, categories of third parties to whom the data was sold and the business purpose.

4. Right to Opt-Out of the Sale of Data.

This gives consumers or their authorized agents the ability to direct businesses to stop selling their PI to third parties. In support of this, enterprises must have a “Do Not Sell My PI” Web page that refers to the business’ general privacy policy.

5. Right to Opt-In for Children: Business Obligation Not to Sell Children’s PI without Affirmative Authorization.

Whereas adults have the right to opt-out, for children companies must obtain the consent from a child’s parent or guardian before selling the child’s PI.

6. Deletion Rights.

Consumers have the right to request a business delete their PI after a verifiable request.

7. Rights to Access and Portability.

This gives the consumer the right to access their PI after submitting a verifiable access request.

8. Not to be Discriminated Against for Exercising Any of the Consumer’s Rights.

Examples of consumer non-discrimination rights include denying goods or services to the consumer, charging different prices or rates, providing a different level of quality of goods or services, or suggesting that any of the above might occur.

In part two we’ll cover the The Eight Corresponding Business Obligations. In order to satisfy the above consumer rights, small businesses have a set of corresponding obligations.

Related articles:

Facebook, General Data Protection Regulation, Privacy and You

20 years of Data  — Where have we been, where are we going?

Does your Data Asset have an Ownership Certificate?

U.S. Small Business Owners and Europe’s General Data Protection Regulation

RELATED POSTS

15 Technology Trends That Will Help Your Business Grow in 2022

15 Technology Trends That Will Help Your Business Grow in 2022

Understanding what technology brings to our life is a way of “reading the future.” Learning about the opportunities that will help our businesses thrive and the threats they may be facing is imperative. The global and most comprehensive analysis of the tech trends for...

Polls

Sign Up for the Latin Biz Today Newsletter

Video Gallery

PR Newswire

Featured Authors

Money

Cash Flow Management for Small Business Owners

Cash Flow Management for Small Business Owners

A requirement for every successful small business and enterprise.   Cash flow management is the process by which an organization maintains control over the inflow and outflow of funds. The fundamental goal of cash flow management is to ensure that the incoming...

Talent/HR

Legal

Marketing

Strategy

Entrepreneurship – Do It Your Way

Entrepreneurship – Do It Your Way

One of my favorite lines that I often quote is the hook from Frank Sinatra’s My Way— “I did it, I did it my way.” As entrepreneurs, we are generally the types who create our own rules and do things our own way. Sometimes it's good to reflect on why this individuality...

Fashion

Food

Music

Sports

14 Takeaways From the World of Sports Business

14 Takeaways From the World of Sports Business

Check out these quick snapshots across the sports industry in May 2022 Welcome! Well, I am apparently over my anger about the baseball lockout. Yes, I am following the game to a degree, especially because the Mets are off to a good start. The New York Yankees are also...

Innovation

Work, Life & Culture

A Visual Artist’s Business Journey

A Visual Artist’s Business Journey

How to use your wits and artistic talents to create multiple streams of income. Ovila Lemon (known in art circles as Ladie Ovila) is an artist, graphic designer, clothing and accessories designer, and an art teacher. Her business, Mūt’Sun Artistry (pronounced...

Culture

Health & Fitness

Travel & Destinations

Hindsight Is Literally 2020!

Hindsight Is Literally 2020!

So as I was approaching my 57th birthday this past October, I came to realize that travel has been on my bucket list 40 years and that since my divorce 6 years ago, I have somehow always felt like I needed someone to give me permission to do so. Really, permission, at...

Personal Blogs

Latin Business Today

Pin It on Pinterest