California Consumer Privacy Act (CCPA) – You are not California Dreamin’!

What Is It?
The California Consumer Privacy Act (CCPA) goes into effect January 1, 2020. It is the most recent personal data protection law passed by the State of California, and provides California residents with more control over the collection, use, and protection of their personal information.

The CCPA’s broad privacy requirements are entirely new, and are certainly among the strictest privacy laws in the United States. It is important to note that CCPA is not a replacement for other existing California privacy law – all of those laws remain  in effect. Here the focus is on CCPA.

Does it Apply to Your Company?
CCPA applies to any for profit company in the world which collects personal data, and

  1. Has annual gross revenues of at least $25 million; or
  2. Obtains personal information of at least 50,000 California residents, households, and /or devices per year; or
  3. Derives at least 50% of its annual revenue from selling California residents’ personal information

What to Do to Prepare
To comply,  companies will have to adopt a variety of new measures, including:

• Draft and post a comprehensive privacy notice ( send me an email request for a more detailed list of elements to include)
• Conduct a data inventory to “map” the use of California residents personal data and instances of “selling” data
• Implement procedures to meet the new individual rights for data access, deletion and opting-out
• Update all vendor agreements with third-parties who may be processing such data on behalf of the business

What are the Penalties for Non-Compliance?
Non-compliance with CCPA puts a company at risk for large fines. The Attorney General can levy fines of  up to $7500 per violation, and make the party subject to “private actions” from California residents.

Jon Dartley, Esq., 212.889.0575 ext. 224

These materials were prepared for informational purposes only. The information contained herein is general in nature and may not have application to particular factual or legal circumstances. These materials do not constitute legal advice or opinions and should not be relied upon as such. Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship. Recipients of this information should not act upon any information in this article without seeking professional counsel.

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