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The California Consumer Privacy Act of 2018, also known as CCPA or AB-375, is the most comprehensive data privacy legislation passed in the US so far. In a nutshell, it affords consumers protections in terms of how their personal information can be used by for-profit entities.

Marketers will feel the immediate effects of the CCPA in two ways. First, wherever personal information is collected, companies must disclose what information they are collecting and how they will use it. Second, companies must grant consumers the ability to opt out of having their information sold to third parties, and they must allow consumers to view and delete the information that has been collected about them.

Marketers will likely need to prepare in two parts—preparing to meet the requirements as set forward in the legislation by January 1, 2020, then monitoring changes to regulation and making adjustments as quickly as possible thereafter.

Potential Risks
Technically, the CCPA went into effect when it was signed into law on June 28, 2018. However, the requirements will go into effect on January 1, 2020.

That said, January 1 is not the end of the line. The California Attorney General has until July 2, 2020 to publish regulations. Also, the Attorney General cannot bring legal action against violators of the CCPA until either July 1, 2020 or six months after the final regulations are published, whichever comes first.

The penalty for each individual violation is $2500 if unintentional and $7500 if intentional. Businesses have 30 days to fix alleged violations after they have been notified of their noncompliance.

What might be even more costly for businesses is the potential for class-action lawsuits in the event of a data breach—between $100 and $750 per incident, or greater if the actual damages exceed $750.

How We Can Help
Our experts understand the impact the CCPA requirements can have on your operations and will bring procedural and technological expertise to your organization regarding these issues. CompliancePoint can help you determine your preparedness and then recommend appropriate solutions and services. Don’t take chances; let our experts help!

Do you have a thorough understanding of what the CCPA means to your organization, the scope of the regulation and areas requiring compliance? You should. We can help.