CCPA Could Have Nationwide Impact

Compliance

March 13, 2020

On January 1st, 2020, a new California privacy law went into effect. Could it impact your business? Yes. The new law has the potential to affect every business with California customers nation-wide.  

Data breaches are nothing new. As the world continues to rely more on digital data, we are beginning to see record high numbers of data breaches. And the impact of these breaches on consumers is starting to build. According to the Pew Research Center, nearly half (49%) of Americans think their data is less secure or private than it was five years earlier. 

And while many companies are trying to solve this problem in isolation, it seems as though the California Consumer Privacy Act (CCPA) is taking steps to mitigate privacy at a higher level.

How CCPA Affects Businesses Nationwide

The CCPA is thought to be the most comprehensive privacy law in the nation. It will extend far beyond state lines. Any entity falling under the CCPA’s definition of a “Business” must implement data protection programs to safeguard consumer information—but the law does not stop at data protection. The law gives consumers more control and input over their personal information than ever before by creating personalized data privacy rights. 

The CCPA requires Businesses to provide Consumers with litany of disclosures regarding how their consumer information is collected or disclosed. Consumers have powerful requests rights under the Act, as well. These include being able to request what specific consumer data a Business has collected and to what categories of third parties the Business disclosed the customer information. It is also mandatory for Businesses to offer simplified ways to delete or stop selling data upon a customer’s request.  

Through the CCPA, consumers will have the right to request that any Business collecting personal information about them, disclose the following:  

  1. The type of information it has collected about a consumer
  2. The sources in which personal information has been collected 
  3. The business purpose for collecting or selling personal information 
  4. The types of third parties with whom the information was shared 
  5. The specific pieces of personal information a business has collected about a consumer 

Fines associated with the CCPA will be no more than $7500 per violation if intentional, no more than $2500 for violations lacking intent, and $750 per affected user in civil damages.  

Since most businesses cater to the 39.75 million California consumers, Businesses throughout the country will have to comply with the law in some way. One of the best ways to prevent legal action is to evaluate your current capabilities and create a strategy to monetize data that complies with the CCPA regulations. By being proactive you can make your business stand out and ensure you will be protected from costly penalties and legal fees.

Drips is Committed to Compliance

Do you have concerns about your business becoming compliant with the California Consumer Privacy Act? Remember that Drips maintains a best-in-class database to support state-level nuances and federal guidelines. By continuing to evolve to serve the needs of consumers, you can rest assured that any Drips-related communication will adhere to the CCPA as outlined above. Learn more about our conversational texting® platform and how we are making strides to protect our clients and their consumers’ data, day in and day out.

The Benefits of CCPA for Businesses

With the growing concerns surrounding data privacy, consumers will want to do business with companies who respect their information, their privacy, and their right to opt-out at will. This means, for companies who are early adopters of the CCPA, it could offer you a competitive edge which will eventually lead to a more loyal customer base.  

Being on the front lines of CCPA compliance will also be hugely beneficial for future compliance measure. It is expected that other states will adopt similar laws to the CCPA, and perhaps one day there will be a more uniform set of national regulations. Becoming CCPA compliant should allow for your business to better understand the data it handles so that it can quickly adapt to any additional laws that may be passed.  

Disclaimer: This blog and all information contained in it are for educational and informational purposes only.  Neither Drips nor any of the writers in this blog are law firms or attorneys, and nothing herein should be construed as or relied on as legal advice.  Drips and the authors herein disclaim any obligations relating to the timeliness or accuracy of the information contained here. No warranties should be implied. Although intended to be current and accurate, regulations and court rulings, as well as interpretations of the same, are always changing and we recommend consulting with your own counsel.