In the digital age, personal information travels far and wide. Businesses collect vast amounts of customer data, from names and addresses to browsing habits and purchase history. While this data can be valuable for personalization and marketing, it also raises privacy concerns.
California has taken a leading role in protecting consumer privacy with the California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA), which amends and expands the CCPA. If you’re a business owner in the Golden State, it can help to familiarize yourself with the obligations the Golden State’s privacy laws place on businesses regarding customer data handling.
Core consumer rights
The CCPA and CPRA grant state residents a robust set of rights regarding their personal information. Businesses must disclose the categories of personal information they collect, the sources from which it’s obtained and the purposes for its use.
Moreover, consumers have the right to request a specific piece of information a business holds about them and how it’s being used. Furthermore, residents can request a business to delete their personal information, with some exceptions.
Businesses must also provide a clear and easy-to-use opt-out mechanism for consumers who don’t want their data sold to third parties. The CPRA strengthens this right by extending it to the sharing of data, not just selling.
Data security and responsible use
The CCPA and CPRA don’t dictate specific data security measures, but they do require businesses to implement and maintain reasonable security procedures to protect personal information from unauthorized access, destruction, use, modification or disclosure. This emphasizes the importance of data security practices like encryption, access controls and regular security assessments.
Beyond security, the laws require businesses to be transparent about their data collection practices. They must have a clear and accessible privacy policy that outlines the categories of information collected, its intended use and how consumers can exercise their privacy rights.
These privacy laws apply to businesses that meet certain thresholds, such as having over $25 million in gross revenue or collecting data on over 100,000 state residents.
The Golden State’s privacy laws set a strong precedent for consumer data protection. By understanding their obligations under these laws, businesses can build trust with their customers and operate within a legal framework that prioritizes privacy. As data privacy continues to evolve, business owners can benefit from personalized legal guidance to help ensure compliance.
