For a long time, experts have argued why and if the internet should be free. They say that the only reason why we can use the internet without charges is that we are a commodity. And it is common to see why this argument is valid. Data has become a big business for many businesses, regardless of if they are information-based enterprises. Big firms such as Google and Facebook collect data to target you with advertisements they believe you will find interesting. However, such data collection efforts still need merit, especially if a small business wants to market and compete against more giant corporations.
In many instances, data collection breaches many personal information policies. Many countries and U.S. states have not had dedicated laws to tackle these growing concerns for a long time. As a result, in 2018, California passed the California Consumer Privacy Act (CCPA). The main aim of the CCPA is to protect customer information and enhance data privacy. Its objective is to have a structure for using or misusing personal information. If you have more questions or want to see practical applications of CCPA, check out video testimonials about Web 2.0 Ranker and how the company has integrated these policies into their business.
Which Businesses Are Affected By CCPA
- With the new data laws, many people still need to understand them and which types of businesses are affected. In general:
- CCPA laws affect non-profit organizations with gross revenues over $25 million
- Buy, receive, or sell more than 50,000 California residents’ information annually.
- At least half of their income comes from selling or purchasing personal data.
What Rights Do Customers Have Under CCPA Laws?
The main aim of CCPA is to give more power and control back to the clients. As mentioned, for far too long, many companies would collect and do as they please with your information, with no restrictions in place. However, with these 2018 California privacy policies, customers:
- Have the right to know what a company will do with their data.
- Refuse to grant permission to a company to sell or share your data.
- Have the right to sue a company that violates CCPA or has a data breach.
- Quickly access and download your personal information from the company upon your request.
- Demand deletion of your data by the company
- Require opt-in for all children below 13 years by their parents
How Is CCPA Different From GDPR Laws?
Even though the General Data Protection Regulation(GDPR) was passed in 2018, it is the foundation for CCPA. GDPR was created to protect European citizens and has some fundamental differences from CCPA. While CCPA uses an opt-out model, GDPR uses an opt-in model.
CCPA allows consumers to opt out and prevents businesses from selling their data. It means that, by default, companies under CCPA can collect and sell consumer data unless the consumer specifically requests not to have their data sold. CCPA has also placed a penalty cap of $7500 per intentional breach and $2500 for an unintentional infringement.
On the other hand, GDPR uses an opt-in model for data collection consent. It means businesses must obtain explicit consent from the consumer before collecting and processing their data. Any company that collects or processes data of E.U. citizens must comply with GDPR by using an opt-in model of consent for the user. GDPR has a penalty cap of 4% of the company’s revenue or $21 million, whichever is higher.
How To Maintain CCPA Compliance
These California privacy laws aim to ensure that companies have clear policies and procedures for collecting personal information and help consumers exercise their right not to have their data sold. So how can your company ensure that it abides by these rules?
Review current policies around data collection
You should implement security procedures and practices. It is essential to invest in security management software. Create a security framework to reduce the chances of hacking or data breaches. Reinforce the security framework by carrying out penetration tests to identify vulnerabilities so that you can improve the security system.
Make sure your staff knows how to handle personal information. The team should be able to clearly define and understand personal details and their legal obligation to delete or provide the data to clients upon request. They should also be able to identify and handle a data breach.
Assist clients in exercising their rights
Include and display a conscious and easy-to-read message on your website about the client’s data protection rights. It is often a popup banner asking the client to opt-in or out of data collection from the company. Another way you can help your clients exercise their rights is by creating auto-processing forms to accelerate and fulfill client requests about their data.
Even though the CCPA doesn’t say so directly, you must have a 12-month retroactive look-back policy. That means you should give your clients their data spinning back 12 months. As a result, it would be a good idea to create a data inventory to comply with these requirements.
To comply with CCPA, you must be conspicuous, clear, and concise with your messaging across all your interactive platforms.
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