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CCPA summary

If you’re short on time and want to understand the California Consumer Privacy Act (CCPA) in a quick and easy way, then look no further in this CCPA summary you’ll have an overview. 

CCPA summary

Get to know the CCPA

Lets start from the top, the CCPA took effect on January 1st, 2020. It puts in place new requirements for processing personal information and grants Californian consumers additional rights.

At the heart of CCPA is personal information, which is defined as any information that, alone or in combination with other information, can lead to a user’s identification. More on personal information under the CCPA here.

The idea of sale is linked to the definition of personal information: sale here does not just relate to the act of trading for money, but to any activity that consists of sharing the user’s personal information for anything that might benefit the business. More information regarding the CCPA’s idea of sale may be accessed here

While doing business with users in California, take into account that they have specific data privacy rights:

  • right to be informed
  • right of access and right to portability
  • right to be deleted
  • right to opt-out
  • right to not be discriminated

Is the CCPA applicable to my company? 

The CCPA applies to any for-profit organization operating in California that: 

  • processes (buys, sells, receives, and shares) personally identifiable information of at least 50k Californians every year, 
  • has annual gross sales of at least $ 25 million, or 
  • generates more than half of its annual income by exchanging customers’ personal information with third parties. 

Please keep in mind that your business might be situated anywhere: as long as your services are available in California, you may be covered by the CCPA and must follow its rules.

💡 Take this quick quiz to find out if the CCPA applies to you.

How to comply with California Privacy Laws

Now that you’ve got a better idea of what the CCPA is all about, let’s go over what you might need to do to comply. 

The first thing you need is a genuine and transparent privacy policy that includes all essential disclosures about how you gather and manage personal information from users. 

It should be clearly available from your website’s or app’s homepage, clarify the mechanism through which users can make changes to their personal data, and include your contact information for CCPA requests. More information on how to satisfy CCPA criteria may be found here.

What are the penalties for violating the CCPA?

Consumers now have the legal right to sue firms that break the law. You may be required to pay up to $750 in damages (or cover real losses if larger) for each affected customer. 

If you breach the CCPA inadvertently, you can be penalized up to $2,500 for each offense. 

If you intentionally violate the CCPA, you might face a fine of up to $7,500 per infraction.

While these sanctions may not appear to be significant when compared to the GDPR, keep in mind that they apply per each infringement and per customer.