How to Protect Your Data Under CCPA and CPRA

Introduction

California has established itself as a leader in data privacy with two key laws: the California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA). These laws shape how businesses handle personal data within California and affect companies across the United States. Let’s explore what these laws entail and how they differ.

CCPA Overview

The CCPA, enacted in 2018 and effective since January 2020, was California’s first comprehensive data privacy law. It aims to give California residents control over their personal information and applies to businesses that collect, use, or share this data.

Key Provisions of the CCPA

• Consumer Rights:
  • Right to Know: Consumers can request details about the personal data collected and why it is collected.
  • Right to Delete: Consumers can ask businesses to delete their personal data.
  • Right to Opt-Out: Individuals can opt out of selling their personal data.
  • Right to Non-Discrimination: Businesses cannot deny services or charge different prices if consumers exercise their privacy rights.
• Business Obligations:
  • Data Disclosure: Businesses must disclose the types of personal information they collect and the purposes for collecting it.
  • Data Protection: Companies must implement reasonable security measures to protect personal data.
  • Opt-Out Mechanism: Businesses must provide a “Do Not Sell My Personal Information” link on their websites.

CPRA Overview

The CPRA, passed in 2020 and effective from January 2023, enhances the CCPA by strengthening consumer rights and adding new requirements for businesses. It is often referred to as “CCPA 2.0” due to its expanded provisions.

How CPRA Expands on CCPA

• New Consumer Rights:
  • Right to Correct: Consumers can request corrections of inaccurate personal data.
  • Right to Limit Use of Sensitive Information: Consumers can limit how businesses use sensitive personal information, like health data or precise geolocation.
• Additional Business Requirements:
  • Data Minimization: Businesses should collect only what is necessary and retain it only as long as needed.
  • Data Protection Assessments: The CPRA requires businesses to conduct regular assessments of their data processing activities.
  • Establishment of the CPPA: The CPRA establishes the California Privacy Protection Agency (CPPA), which oversees enforcement and compliance.

Key Differences Between CCPA and CPRA

While the CPRA builds on the CCPA, there are notable differences between the two laws:

1. Consumer Rights:
   • The CPRA introduces the right to correct and limit sensitive data usage, which is not explicitly covered under the CCPA.
2. Data Sharing:
   • The CCPA primarily regulates data sales, while the CPRA expands this to include sharing data for cross-context behavioral advertising.
3. Compliance Requirements:
   • The CPRA adds new obligations for businesses, such as conducting risk assessments, while the CCPA has fewer detailed requirements.
4. Sensitive Information:
   • The CPRA creates a category for “sensitive personal information” and offers consumers additional rights over its use.
5. Agency Oversight:
   • The CPRA establishes a dedicated privacy agency, while the CCPA relies on the California Attorney General for enforcement.

Business Compliance: Adhering to Both Laws

To comply with both the CCPA and CPRA, businesses should take several practical steps:

• Update Privacy Policies: Reflect the new rights and data practices required by the CPRA.
• Implement Opt-Out Mechanisms: Ensure easy access to “Do Not Sell or Share My Personal Information” options.
• Review Data Collection Practices: Limit data collection to what is necessary and relevant.
• Train Employees: Educate staff on the updated consumer rights and compliance requirements.
• Enhance Data Security: Adopt stronger security measures, particularly for sensitive information.
• Conduct Data Risk Assessments: Regularly assess how personal data is processed, shared, and protected.

Impact on Consumers

These laws enhance consumer privacy protection in California by granting more rights and transparency. The CPRA, in particular, focuses on sensitive data protection and limits on how businesses can use personal information. Both laws empower consumers to make informed decisions about their data.

Conclusion

The CCPA and CPRA together represent significant strides in data privacy for California residents. For businesses operating in or serving California, understanding and adhering to these laws is crucial. While the CCPA set the foundation, the CPRA brings more robust protections and compliance requirements. Staying updated with these changes not only ensures legal compliance but also fosters trust with consumers who value privacy.