California Consumer Privacy Act (CCPA) and the nature of Opt-Out

How Does the CCPA Define ‘Personal Information’?

The CCPA broadly defines ‘personal information,’ covering various data types.

• Identifiers: Names, email addresses, and Social Security numbers.
• Commercial Information: Records of products or services purchased and other purchasing histories.
• Biometric Information: Fingerprints, voiceprints, and retina scans.
• Internet Activity: Browsing history, search history, and interactions with websites.
• Geolocation Data: GPS data and other location information.

“Definition of personal information is expansive and includes both online and offline data.”

California Department of Justice

Where Does the CCPA Apply?

The CCPA applies to certain businesses based on their operations and data processing activities.

The CCPA applies to for-profit businesses that collect personal data from California residents and meet at least one of the following criteria:

• Businesses with annual gross revenue over $25 million.
• Entities processing personal data of 50,000 or more consumers, households, or devices.
• Companies that derive 50% or more of their revenue from selling personal information.

Generally, the CCPA does not apply to nonprofit organisations or government entities.

Is CCPA Compliance the Same as GDPR Compliance?

While the CCPA and GDPR both focus on consumer privacy, they have important differences.

Aspects	GDPR	CCPA
Geographic Scope	Applies to entities processing the personal data of EU residents	Applies to businesses dealing with California residents’ data
Rights And Protection	Provide comprehensive rights, including data portability and correction	Emphasises transparency and control over data sales
Penalties	Fines up to €20 million or 4% of global revenue, whichever is higher	Fines range from $2,500 per violation to $7,500 per intentional violation

“Both laws aim to protect consumer privacy, GDPR generally has stricter enforcement and a broader scope.”

 Comparison report by the law firm DLA Piper

Does the CCPA Override HIPAA?

CCPA targets a different form of data than HIPAA, which focuses on protecting sensitive patients’ health information. HIPAA regulates issues related to protecting healthcare data, while CCPA focuses on the general protection of personal information.

CCPA does not override HIPAA, and there are situations where both laws can apply. For example, a healthcare provider subject to HIPAA is not exempt from CCPA if they are involved in activities outside the scope of healthcare data.

While CCPA concerns personal data and consumer rights, HIPAA deals with specific types of data related to patients’ unique needs.

“HIPAA remains the primary regulation for healthcare data, while the CCPA applies to broader consumer data.”

According to the Office for Civil Rights

How Does the CCPA Affect Cookie Usage?

The CCPA has implications for how businesses handle cookies and other tracking technologies. Under the Act,

•  Businesses are required to disclose their use of cookies in their privacy policies.
• Consumers must be provided with the option to opt-out of the sale of their data, including information collected through cookies.
• While the CCPA does not require explicit consent for cookies like the GDPR, it requires businesses to communicate their data practices and provide users with options.

“Businesses are increasingly updating cookie policies and consent mechanisms to comply with the CCPA.“

Forrester Research

CCPA Compliance Strategies

Effective CCPA compliance requires a strategic approach that addresses multiple aspects of data privacy and protection.

Conducting a CCPA Assessment

•  Map out where personal information is collected, processed, and stored.
• Use the assessment to identify any gaps in your current practices that may need to meet CCPA standards.

Developing a Comprehensive Privacy Policy

•  Use a CCPA Privacy Policy Generator to explain clearly what data is collected and why.
• Ensure the privacy policy aligns with CCPA audit requirements and is easy to find and understand on your website.
• Update the policy regularly to reflect changes in your data practices or CCPA requirements.

Implementing Data Subject Access Requests (DSARs)

• Make sure you can verify the identity of anyone who makes a request.
•  Respond to requests within the CCPA’s 45-day deadline.
• Consider using online portals to manage DSARs efficiently.

Managing Third-Party Relationships

• Add CCPA-specific clauses to contracts with vendors and partners.
• Regularly check that third parties adhere to CCPA standards.
•  Ensure third parties don’t misuse or improperly sell shared data.

Employee Training and Awareness

•  Educate employees on CCPA requirements and their role in compliance.
•  Promote a culture of privacy across the organisation.
• Customise training to match the specific roles and responsibilities of each employee.

Data Security and Breach Notification

• Implement and maintain strong data security practices.
• Develop a clear plan to notify individuals affected by a data breach promptly.
• Outline steps to reduce damage and prevent future breaches.

“Businesses that invest in comprehensive data mapping and privacy notice updates position themselves better for compliance.”

The International Association of Privacy Professionals (IAPP) survey

CCPA Statistics

The chart reveals that the average cost of CCPA non-compliance is $2,500 per violation. Thus, non-compliance is a costly venture that businesses cannot afford.

Further, the survey revealed that 60% of Californian consumers are nowadays aware of the CCPA and their rights. Thus, the increasing number of consumers exercising their rights and demanding data may lead to more complaints.

The chart also shows a 50% increase in CCPA enforcement actions from 2022 to 2023, indicating that regulatory bodies are increasingly vigilant about holding non-compliant companies accountable.

Recent CCPA News and Trends

The California Consumer Privacy Act (CCPA) is rapidly evolving, with recent legislative updates and a stronger focus on enforcement. The introduction of the California Privacy Rights Act (CPRA) has expanded the CCPA by establishing the California Privacy Protection Agency (CPPA) to enforce data privacy laws.

Remedial actions have become more aggressive. In particular, the California Attorney General’s Office tends to issue more violation letters.

Approximately 75% of businesses have corrected issues within 30 days of notification, highlighting the law’s growing impact.

CCPA Enforcement and Non-Compliance Penalties

Businesses that don’t comply with the CCPA can face hefty fines, with penalties reaching up to $2,500 for unintentional violations and $7,500 for intentional ones. 

In some cases, consumers can also seek damages, adding to the risks for non-compliant companies. If a business doesn’t correct issues within 30 days of notification, regulators can impose fines of up to $7,500 per violation. 

For serious data breaches, fines could reach millions, depending on the number of people affected.

Bottom Line:

The California Consumer Privacy Act (CCPA) enhances privacy rights for California residents, giving them control over their personal data and requiring businesses to be transparent about data use. Key rights include data access, deletion, and opting out of sales. CCPA compliance involves updating privacy policies and managing data practices effectively.

Use this information to make sure that you protect yourself against fines. Become compliant with CCPA Audit using the Seers CCPA Compliant Cookie Consent Management Solution.