What Is The CCPA? Here’s How To Comply

A seasoned small business and technology writer and educator with more than 20 years of experience, Shweta excels in demystifying complex tech tools and concepts for small businesses. Her work has been featured in NewsWeek, Huffington Post and more.

Shweta Small Business Writer

A seasoned small business and technology writer and educator with more than 20 years of experience, Shweta excels in demystifying complex tech tools and concepts for small businesses. Her work has been featured in NewsWeek, Huffington Post and more.

Written By Shweta Small Business Writer

A seasoned small business and technology writer and educator with more than 20 years of experience, Shweta excels in demystifying complex tech tools and concepts for small businesses. Her work has been featured in NewsWeek, Huffington Post and more.

Shweta Small Business Writer

A seasoned small business and technology writer and educator with more than 20 years of experience, Shweta excels in demystifying complex tech tools and concepts for small businesses. Her work has been featured in NewsWeek, Huffington Post and more.

Small Business Writer Jane Haskins, J.D. Contributor

Jane Haskins practiced law for 20 years, representing small businesses in startup, dissolution, business transactions and litigation. She has written hundreds of articles on legal, intellectual property and tax issues affecting small businesses.

Jane Haskins, J.D. Contributor

Jane Haskins practiced law for 20 years, representing small businesses in startup, dissolution, business transactions and litigation. She has written hundreds of articles on legal, intellectual property and tax issues affecting small businesses.

Written By Jane Haskins, J.D. Contributor

Jane Haskins practiced law for 20 years, representing small businesses in startup, dissolution, business transactions and litigation. She has written hundreds of articles on legal, intellectual property and tax issues affecting small businesses.

Jane Haskins, J.D. Contributor

Jane Haskins practiced law for 20 years, representing small businesses in startup, dissolution, business transactions and litigation. She has written hundreds of articles on legal, intellectual property and tax issues affecting small businesses.

Contributor Kelly Main Staff Reviewer

Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.

Kelly Main Staff Reviewer

Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.

Kelly Main Staff Reviewer

Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.

Kelly Main Staff Reviewer

Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.

Updated: Aug 23, 2022, 11:17pm

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What Is The CCPA? Here’s How To Comply

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Table of Contents

The CCPA is a privacy law enacted in 2018 by the state of California to regulate the way businesses all over the world can collect, use and share the personal information of California residents. Irrespective of where you are located or operate, if you have consumers in California, you must know about the CCPA and comply with it if required.

In this article, we will discuss the nuances of the CCPA and whether it applies to you or not. And if it applies, we’ll describe some steps you can take to stay in compliance.

What Does CCPA Mean?

CCPA stands for the California Consumer Privacy Act of 2018. It has been effective from January 1, 2020 and is the first law of its kind in the United States.

What the CCPA Protects

The CCPA protects the residents of California against third-party sales or disclosure of their personal information. The CCPA provides these privacy rights to California consumers:

What Constitutes Personal Information

According to the CCPA, personal information is defined as any information that can identify, describe, relate to or be linked with a consumer or their household in a way that a profile about their preferences and characteristics can be built.

Examples of personal information include:

Am I Required To Comply With the CCPA?

If you are a for-profit organization that does business in California and meets any of the following three criteria, you must comply with the CCPA:

  1. Your annual revenue is more than $25 million
  2. You buy, sell or receive personal information of 50,000 or more California residents, households or devices
  3. At least 50% of your annual revenue is generated by selling personal information of California residents

Penalties for CCPA Noncompliance

CCPA noncompliance incurs financial penalties.

The California attorney general is authorized to bring about an injunction or a civil action suit against any entity violating the CCPA. If the violation is intentional, the penalty can be $7,500, or $2,500 in the case of an unintentional violation.

If any consumer’s unencrypted sensitive personal information has been subject to data breach, they can file a civil action suit against your company. The consumer can sue for their actual damages or for statutory damages of between $100 and $750 per consumer per incident. Those penalties can multiply quickly if there’s a data breach involving thousands of consumers.

How To Maintain CCPA Compliance

Here are a few suggestions for maintaining CCPA compliance:

Bottom Line

If you cater to a good number of California consumers, you must be aware of the rules under the CCPA and keep checking whether you are required to comply with them. It is advisable to comply with the laws and be prepared rather than face penalties later.

Frequently Asked Questions

Who does the CCPA apply to?

Does the CCPA apply to nonprofit organizations?

No, the CCPA does not apply to nonprofit organizations or government agencies.

Does the CCPA apply to all businesses in California?

No, the CCPA does not apply to all companies in California. Only those that meet any of the three criteria laid down in the CCPA must comply with the law.

What is the penalty for CCPA noncompliance?

In the case of the California attorney general filing a civil lawsuit against a company, the penalty for intentional CCPA noncompliance is $7,500 whereas an unintentional noncompliance is $2,500. If an individual files a lawsuit, statutory damages are anywhere between $100 and $750 per consumer per incident.

What is considered to be personal information covered under the CCPA?

Personal information and personal data are interchangeable in regard to the CCPA, so what qualifies as personal data under the GDPR is the same as personal information under the CCPA. This includes name, home and work addresses, all personal telephone numbers, email address, passport number, ID number (such as a driver’s license number), Social Security number, medical information and more.

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Small Business Writer

A seasoned small business and technology writer and educator with more than 20 years of experience, Shweta excels in demystifying complex tech tools and concepts for small businesses. Her work has been featured in NewsWeek, Huffington Post and more. Her postgraduate degree in computer management fuels her comprehensive analysis and exploration of tech topics.

Contributor

Jane Haskins practiced law for 20 years, representing small businesses in startup, dissolution, business transactions and litigation. She has written hundreds of articles on legal, intellectual property and tax issues affecting small businesses.

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