What is the California Consumer Privacy Act
While EU business’ must now comply with GDPR, the majority of American based organizations are unaware of the preparation it takes to be compliant with the new privacy laws that are slowly becoming the norm. California has adopted a law similar to GDPR called the California Consumer Privacy Act, set to take effect on January 1st, 2020.
A number of new provisions that allow the consumer certain rights. These rights include but are not limited to:
- Right to say no to the sale of your information
- Right to delete your data
- Right to know the categories and third-parties your data is shared with
- Right to know the business or commercial purpose of collecting your data
- Private right to take action if companies breach your data
Who does the California Consumer Privacy Act apply to?
The California Consumer Privacy Act is applicable to any business, partnership, company, corporation, or legal entity that operates for the purpose of profiting as well as collects consumer’s personal information from the state of California. Additionally, it must satisfy at least one of the following requirements:
- Has a gross annual revenue of $50 million or more
- Annually sells personal information of at least 100,000 consumers
- Acquires 50% or more of its annual revenue from selling consumer information
If you meet one or more of the provisions above, your business must comply with the California Consumer Privacy Act.
Why you need to know
The California Consumer Privacy Act is California legislature. However, it pertains to any organization worldwide that does business in the State. The State of California is viewed as a trailblazer when it comes to regulations regarding technology and privacy, oftentimes with other states following suit. Additionally, California has the world’s fifth biggest global economy which necessitates that organizations will have to prepare for data protection changes in order to stay relevant – and in business.
Source: VinciWorks
