The California Consumer Privacy Act (“CCPA”) Is Enforceable Beginning July 1, 2020. Is Your Business Ready?

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You may have noticed a recent influx of personal emails about updates to businesses’ privacy policies and terms and conditions. This may be due, in part, to the California Consumer Privacy Act (“CCPA”) allowing individuals to bring private rights of action against businesses. While the CCPA was effective January 1, 2020, it will be enforceable by the California Attorney General beginning July 1, 2020.

What is the CCPA?

The CCPA grants California consumers the right to control the personal information that businesses collect about them. Through the CCPA, California residents have the right to know what personal information is being collected, whether their personal information was sold or disclosed (and to whom), and may request that businesses delete their personal information. Under the CCPA, personal information is any data that identifies, relates to, or describes a particular person or household. Information such as a person’s name, address, and email address (even a computer IP address) are considered personal information. This applies to information collected online and offline, so the CCPA may apply to businesses even if they do not have a website.

Not all businesses need to comply.

The CCPA applies to for-profit businesses that collect consumers’ personal information and meet one or more of these criteria:

(1) The business has an annual gross
revenue in excess of $25M;

(2) The business collects, buys,
receives, sells, or shares the personal information of 50,000 or more
California-resident consumers, household, or devices; or

(3) The business derives 50% or more of
its annual revenue from selling consumers’ personal information.

Even small consumer-oriented businesses should take particular note of the second criteria: If the business’ website collects what the Act classifies as “personal information,” such as email addresses or the IP Address of the computer accessing the website, it may not take very long to collect that kind of information about 50,000 California-resident devices or consumers and make the business subject to the Act.

Upon receiving a verified consumer request, businesses meeting any of the above-mentioned criteria must give California residents the means to exercise their rights under the CCPA and cannot discriminate against them for exercising these rights. Businesses must complete the consumer’s request within 45 days, although an extension of time may be available, and the process of responding to consumer requests must be supported by reasonable security procedures and practices.

What happens if a business does not comply?

A failure to cure any alleged violation of the CCPA within 30 days of notification of alleged noncompliance will subject businesses to an injunction and civil penalties of no more than $2,500 per violation or $7,500 per intentional violation. And if personal information is improperly disclosed or stolen due to the absence of reasonable security procedures and practices, businesses may be subjected to civil action for injunctive or declaratory relief, damages of $100 to $750 per consumer, per incidentor actual damages (whichever is greater), or any other relief that the court deems proper.

Are you ready to comply with the CCPA? Attorneys at Conkle, Kremer & Engel are staying current with the CCPA to guide their clients through compliance.

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