Compliance

CCPA Compliance Guide for California Businesses

January 25, 202411 min readBy Faith Awokunle
The California Consumer Privacy Act sets strict requirements for how businesses collect and handle consumer data. ## Who Does CCPA Apply To? The CCPA applies if you: - Do business in California - Collect personal information from California residents - Meet any of these thresholds: - Annual gross revenues > $25 million - Buy/share data of 100,000+ Californians/households - Derive 50%+ revenue from selling/sharing consumer data ## Consumer Rights Under CCPA ### Right to Know Consumers can request: - What personal information is collected - The purpose of collection - With whom data is shared - You must respond within 45 days ### Right to Delete Consumers can request deletion of: - Personal information collected - Data held by service providers - Exceptions include legal obligations - You must verify the request ### Right to Opt-Out Consumers can opt-out of: - Sale of personal information - Sharing for cross-context behavioral advertising - Profiling for automated decisions - You must provide prominent opt-out links ### Right to Non-Discrimination Businesses cannot: - Deny goods/services - Charge higher prices - Provide lower quality service - For exercising CCPA rights ## Implementation Steps 1. Audit data practices 2. Create privacy policy 3. Implement opt-out mechanisms 4. Set up request procedures 5. Train staff 6. Update contracts 7. Regular compliance reviews ## Key Requirements **Privacy Policy Must Include:** - Categories of personal information collected - Purpose of collection - Categories of sources - Retention periods - Consumer rights - Contact information **Response Procedures:** - Establish verification process - Respond within 45 days - Provide clear responses - Document all requests - Maintain security ## Penalties - Up to $2,500 per violation - Up to $7,500 per intentional violation - Private right of action for data breaches - Start compliance now to avoid penalties The CCPA is just the beginning. More state laws are coming.

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