California Consumer Privacy Act (CCPA) - The Facts
Spoiler Alert: This Does Not Apply to you unless your business meets the thresholdoutlined below. Please review thiscarefully if you meet these criteria:
TIV Branding is very careful about protecting the interests of our website clients, and while very few of our clients are impacted by CCPA, we wanted to be sure to let everyone know the facts about the new privacy legislation.
There have been many questions about the newonline information act in California that goes into effect on January 1,2020. The California Consumer PrivacyAct (CCPA) applies to companies that are located anywhere in the world that:
- Collect personal data of California residents
- They (or their parent company or a subsidiary) exceed at least one of the three thresholds:
- Annual gross revenues of at least $25 million
- Obtains personal information of at least 50,000 California residents, households, and /or devices per year
- At least 50% of their annual revenue is generated from selling California residents’ personal information
A CaliforniaResident is defined by the California laws as any person who:
- Is in California for other than a temporary or transitory purpose
- Has a permanent primary residence in California, but is currently outside the state for temporary or transitory purposes
For those businesses that are covered bythe new law, it is required that:
Website and employee privacypolicies are updated to include descriptions of the categories of informationcollected, third parties with whom data is shared, and rights available toindividuals under CCPA.
Revise or create internal(non-customer-facing) privacy policies and procedures as well to ensure thatemployees are interacting properly with the public.
The CCPA contains data protectionand security provisions and provides a private right of action for consumersaffected by a data breach caused by a business’ failure to provide ‘reasonablesecurity. Although the entire law takeseffect on Jan. 1, 2020, only the security provisions will be immediatelyenforceable, either by the California Attorney General or via a private rightof action.
Businessesthat release personal information to the harm of the consumer may facelitigation and/or government regulation penalties.
Businesses are responsible forknowing the types of personal information that you have collected in the past12 months, the purposes for which you collected it, and the types of entitiesto whom you disclosed it in the past 12 months, and continue to track that onan ongoing basis.
Make surethat vendors give you the contractual protections you need for datarestrictions. Review contracts to besure that these protections are in place.
Train personnel to understand their privacy program so they can help reduce the risk for the business.
Conclusion:
I am not an attorney, nor do I have an extensive knowledge of the new legislation, but if you feel that your business may be affected by the new CCPA regulations, I would strongly suggest that you seek the advice of qualified legal counsel to implement proper procedures and disclosures to comply with the new law that takes effect on January 1, 2020.
Eric Van Cleave is the Co-CEO and Digital Marketing Director for TIV Branding
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TIV Branding is a boutique branding firm in Sonoma County, California. We specialize in building brands by using traditional, social and digital channels in unison. If you would like to discuss a project or find out more about how we do what we do, please email us at info@TIVbranding.com.