California Consumer Protection Act

California Consumer Privacy Act/Unsplash

On January 1, 2020, AB-375, more commonly known as the California Consumer Privacy Act (CCPA), will go into effect, forming new guidelines for state businesses that collect personal data from their customers.

The purpose of CCPA is to offer customers the opportunity to access their personal data, say no to the sale of their personal data, find out whether their personal data has been sold or disclosed to another entity, and request that a business delete any personal information collected by the business.

CCPA only applies to businesses that satisfy one of the following conditions:

• They earn more than half of their annual revenue selling personal information from their customers
• They have collected more than 50,000 pieces of personal information
• They have more than $25 million in gross annual revenue

Companies doing business in California that meet one of the above thresholds will be required to post clear methods for consumers to opt out of the sale, including a homepage link and a toll-free telephone number. Their privacy policies must also be updated to include information on the rights of residents.

Any business that violates CCPA will be fined up to $7,500 for intentional violations, and $2,500 for unintentional violations.

For more information, go to https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180AB375

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