Shedding Light on the Ramifications of the California Consumer Privacy Act (CCPA)

Shedding-Light-on-the-Ramifications-of-the-California-Consumer-Privacy-Act-(CCPA)

Shedding Light on the Ramifications of the California Consumer Privacy Act (CCPA)

California issued The California Consumer Privacy Act (CCPA) or AB 375 in June 2018. With this act coming into effect from January 1, 2020 onwards, the California consumers can get access to all their personal information from the company repository. They can also keep track of all the third-parties, collecting consumers’ data.

California law also states that on account of violation of privacy rights, the consumers can go one step ahead to prosecute the companies. This law has serious implications for business especially for online advertisers in terms of accumulation and utilization of personal data. The regulation entails that he brands should comply with the newly framed clauses pertaining to usage of customers’ data.

Here are 5 key aspects of how the act will impact commerce:

1.Who will be affected by CCPA?

Any organization, irrespective of location, carrying private data of the consumers of California will come under the purview of CCPA as long as it meets one of the following criteria:

  • Annual gross revenue over $25 million.
  • Realizing annual revenue of 50% and above by trading California consumers’ private information.
  • Purchasing, selling or sharing of personal information of 50,000 or more consumers of California, annually for commercial purposes.

2.What are the vital elements of CCPA?

The CCPA talks about the different rights exercised by California consumers with respect to data collection and usage for commerce.

Consumers have the right to ask for the sources, purposes and types of information assembled. They also have the right to enquire about the involvement of third-parties in handling their personal data and request removal or opting out from the process of data collection. The act also warrants that the consumers should practice CCPA rights freely without anybody’s intervention.

3.What are the measures taken in case of defiance of the CCPA act?

In the initial stage, the California Attorney General will issue 30 days notice against the concerned enterprise to mutually sort out the situation with the target consumer. In case of inaction for 30 days, there is imposition of fines which varies from $2,500 to $7,500 per violation for intentional infringement.

4.How is a service provider distinct from a business?

A service provider collects data from a customer solely for the purpose of serving that customer. It will not use the information for achieving its own business goals, quite contrary to a business establishment.

5.What are the regulations for the people below the age of 16?

“Right to Opt-In” is mandatory for the youngsters below 16 years of age, while guardian authorization with regards to trading personal information is essential for children under 13 years of age.

CCPA is an unprecedented law which will empower California consumers with important rights regarding data privacy. Needless to say, soon other countries and states will start following this precedent. From a business perspective, this act will confer certificate of trust and reliability to the organizations making them the entities of choice for the consumers. When the customers put their faith in such businesses, organizations benefit from enhanced loyalty and retention of customers, leading to a greater edge in the business ecosystem.

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