California Consumer Privacy Act

Third party developers have been reading Gmail users’ e-mails due to which people are increasingly concerned about the use and misuse of their personal information.

California passed the Consumer Privacy Act (CCPA), following on the heels of the European Union’s new General Data Protection Regulation (GDPR) guidelines. The CCPA is set to be the toughest privacy law in the United States by broadly expanding the rights of consumers and requiring businesses within scope to be significantly more transparent about how they collect, use, and disclose personal information.

The California Consumer Privacy Act of 2018 has been passed through the California legislature on June 28, 2018 without opposition. It is set to take effect on January 1, 2020.

Back in 1972, the California Constitution was amended to state that its constituents have a right to privacy. That amendment afforded every Californian a legal and enforceable right to privacy. It is estimated that with roughly with three billion online searches, and two hours per person are spent on social media a day. Thus people’s privacy needs have increased exponentially.

This has paved the way for CCPA to grant consumers the right to request that a business discloses the categories and specific pieces of personal information it collects, how it is collected, and what third parties they share it with.

Therefore, it is the intent of the Legislature to further Californians’ right to privacy by giving consumers an effective way to control their personal information, by ensuring the following rights:

(1) The right of Californians to know what personal information is being collected about them.
(2) The right of Californians to know whether their personal information is sold or disclosed and to whom.
(3) The right of Californians to say no to the sale of personal information.

(4) The right of Californians to access their personal information.

(5) The right of Californians to equal service and price, even if they exercise their privacy rights.”
Because of the GDPR, digital advertisers have already refined their processes to ensure compliance and consumer data safety including mechanisms for fielding people’s requests for data access, deletion, and retrieval.

With the CCPA, there are a few additional things companies must do to make sure people’s data are not compromised. Arguably the most significant part of the law for digital advertisers is a consumer’s ability to request deletion of their data and opt out of its sale—but the CCPA includes a definition of “personal information” that covers browsing and search history.

Any company that does business with California residents—even if that company isn’t based in the state—must comply with the law. Companies doing business in California will have to update their privacy policies and work practices to align with the new law when it comes into effect.

As other states frequently look to California’s outsized influence and precedents, there’s a good chance the CCPA could become the national gold standard through state-level legislation.

With the GDPR, there may be legal hiccups initially. From making data policies more transparent to changing third-party data access, the industry has proven itself to be highly adaptive and innovative, quickly implementing changes that new laws dictate.

Both the GDPR and CCPA can be seen as positive steps for protecting consumer privacy, while still allowing brands to connect with their customers and prospects with relevant messages.