What is CCPA Compliance for B2B Businesses?

What is CCPA Compliance for B2B Businesses?

The California Consumer Privacy Act (CCPA) is a comprehensive privacy law that aims to protect the personal data of California residents. While the law was initially designed to regulate consumer-facing businesses, it also applies to business-to-business (B2B) companies that collect and process personal data from California residents.

Who is Subject to CCPA Compliance?

CCPA applies to B2B businesses that meet certain criteria. First, the business must be a for-profit entity that collects personal data from California residents. Second, the business must have annual gross revenues of at least $25 million. Third, the business must have personal data of at least 100,000 California residents, households, or devices. Finally, the business must be subject to the jurisdiction of the California Attorney General.

What are the Obligations of CCPA Compliance?

Under CCPA, B2B businesses are required to provide certain disclosures to California residents. These include:

• A clear and conspicuous notice of the categories of personal data collected and the purposes for which the data is used.
• A description of the rights of California residents to request access to their personal data, to request deletion of their personal data, and to opt-out of the sale of their personal data.
• A description of the procedures for submitting requests to exercise these rights.

B2B businesses must also comply with certain obligations when processing personal data. These include:

• Providing a reasonable level of security to protect personal data from unauthorized access, theft, or disclosure.
• Not selling or sharing personal data with third parties without the consent of the California resident.
• Not using personal data for purposes other than those disclosed to the California resident.

How to Respond to Requests from California Residents?

In addition to these obligations, B2B businesses must also comply with certain requirements when responding to requests from California residents. These include:

• Providing a response to requests for access to personal data within 45 days.
• Providing a response to requests for deletion of personal data within 45 days.
• Providing a response to requests to opt-out of the sale of personal data within 45 days.

What are the Requirements for Disclosing Personal Data to Third Parties?

Finally, B2B businesses must also comply with certain requirements when disclosing personal data to third parties. These include:

• Providing a clear and conspicuous notice to California residents of the categories of personal data disclosed to third parties.
• Providing a description of the purposes for which the personal data is disclosed to third parties.
• Providing a description of the procedures for submitting requests to exercise rights with respect to personal data disclosed to third parties.

Conclusion

In conclusion, CCPA compliance for B2B businesses is a complex and multifaceted process. By understanding the key aspects of CCPA compliance, B2B businesses can ensure that they are in compliance with the law and protect the personal data of California residents.