Who Must Follow the California Consumer Privacy Act?

What is the California Consumer Privacy Act (CCPA)?

The California Consumer Privacy Act (CCPA) is a comprehensive privacy law that aims to protect the personal data of California residents.

Who Must Comply with the CCPA?

The CCPA applies to businesses that collect personal information from California residents, regardless of whether they are based in California or not.

What are the Criteria for a Business to Comply with the CCPA?

The law defines a business as any for-profit entity that meets certain criteria, including:

• Having annual gross revenues of $25 million or more;
• Buying, receiving, or selling the personal information of 50,000 or more California residents, households, or devices;
• Deriving 50% or more of its annual revenues from selling California residents' personal information;
• Being a business that is subject to the Gramm-Leach-Bliley Act (GLBA) or the Health Insurance Portability and Accountability Act (HIPAA).

Do Service Providers and Third-Party Companies Need to Comply with the CCPA?

Yes, service providers that process personal information on behalf of businesses, as well as third-party companies that collect personal information from California residents, must also comply with the CCPA.

What are the Requirements and Obligations of the CCPA?

The CCPA requires businesses to provide certain information to California residents, including:

• The categories of personal information collected about the resident;
• The categories of sources from which the personal information is collected;
• The business purposes for collecting and using the personal information;
• The categories of third parties with whom the personal information is shared.

What are the Penalties for Non-Compliance with the CCPA?

The CCPA imposes penalties for non-compliance, including:

• Fines of up to $7,500 per violation;
• Class action lawsuits;
• Reputational damage.

Are There Any Exemptions or Exceptions to the CCPA?

Yes, the CCPA has certain exemptions and exceptions, including:

• Businesses that are subject to the Gramm-Leach-Bliley Act (GLBA) or the Health Insurance Portability and Accountability Act (HIPAA) may be exempt from certain CCPA requirements;
• Small businesses with annual gross revenues of less than $25 million may be exempt from certain CCPA requirements;
• Businesses that only collect personal information from California residents for a limited purpose, such as for a one-time transaction, may be exempt from certain CCPA requirements.

How Can Businesses Ensure CCPA Compliance?

Businesses can ensure CCPA compliance by:

• Conducting a thorough review of their data collection and processing practices;
• Implementing measures to protect personal information, such as encryption and secure data storage;
• Providing clear and conspicuous notices to California residents about their personal information collection and use practices;
• Allowing California residents to exercise their rights under the CCPA, such as the right to access, correct, and delete their personal information.

Why is CCPA Compliance Important?

CCPA compliance is important because it helps to protect the personal data of California residents and ensures that businesses are transparent about their data collection and processing practices. Compliance with the CCPA also helps to prevent reputational damage and financial penalties.