On the Heels of GDPR, Here Comes the CCPA. Are You Ready?

Posted by Mariamne Ingalls on Dec 4, 2019 11:16:00 AM
Mariamne Ingalls
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On the Heels of GDPR, Here comes the CCPA. Are you ready?

As the United States struggles to update its national privacy laws, California is taking a big step in this direction in January 2020. The California Consumer Privacy Act (CCPA) goes into effect January 1st and aims to improve privacy rights and consumer protections for residents of California. Are you ready?

If your company has complied with the European Union's GDPR (General Data Protection Regulation), some provisions of the CCPA will be familiar. But there are differences with CCPA including who it applies to, the sale of data, and updates to privacy policies.

Also, even though the word “consumer” is in the name of the law, the CCPA does not let B2B companies completely off the hook. One critical source of exposure for our readers and companies covered under the law is sales and marketing tools that collect customer contact information.

We suggest you check NOW to ensure someone at your company is on top of California’s new law and its potential impact on your business.

Are You Affected by CCPA?

The CCPA applies to businesses that collect personal data from California residents AND can answer “yes” to at least ONE of the following:

  • Your annual gross revenue is greater than $25 million
  • You hold the personal data of 50,000 or more consumers, households or devices
  • You earn more than half of your annual revenue from selling consumers' personal data.

Determining whether CCPA applies to your business can be more complex than it appears.

If the size of your business operations doesn’t reach the CCPA size limits above, be careful. If you are a service provider to a business to which CCPA applies, your client may require you to comply with the law.

More Privacy Policy and Website Updates

The CCPA requires that businesses inform consumers that their personal information is being collected and for what purpose. This is already required in GDPR-compliant privacy policy notices. But the CCPA goes further.

If a company sells consumer information, it must not only disclose that fact, but must also provide a mechanism on its website for consumers to opt out of the sale. Additionally, if a company uses other sources of information on consumers, it must disclose those sources as well.

Companies under CCPA regulation must include consumers' data rights afforded by CCPA in their published privacy policies.

Rules in Progress

New concepts and definitions introduced by the CCPA are still being clarified and refined. For example, CCPA introduces the concept of “household,” which legal analysts say is murky.

Here are a few other rules and definitions you should be aware of to ensure full compliance with CCPA regulations:

  • An amendment to the CCPA was recently passed clarifying that the CCPA does not consider information made public by governments to be included in its definition of “personal information.”
  • There is specific language defining businesses, business affiliates, and service providers that warrants careful reading.
  • Draft rules require businesses to retain records of consumer's requests and their responses.

Conclusion

ROI Selling takes compliance with information security and privacy laws and regulations seriously. We have taken steps to keep our practices accurate and current, and can help you deploy value selling tools that meet all applicable data privacy requirements.

We will all need to monitor and comply with changes to the CCPA beyond January 1st. The Attorney General of California is responsible for establishing detailed rules for enforcing the CCPA, and is taking public comments through December 6th. Amendments to the CCPA are also expected to go to a vote in 2020.

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More Reading

Who, Exactly, is Subject to the CCPA?

CCPA California Government Fact Sheet

5 Key Requirements for the CCPA

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Resources

Connect with Mariamne Ingalls on LinkedIn.

Join the Value Selling for B2B Marketing and Sales Leaders LinkedIn Group.

Visit the ROI Selling Resource Center.

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