Discusses Understanding the California Consumer Privacy Act

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June 09
20:47 2020 Discusses Understanding the California Consumer Privacy Act

The California Consumer Privacy Act or CCPA seemed like it appeared out of thin air. But it passed by the desk of Governor Jerry Brown in 2018, leading many businesses to clamor to better understand what it means and how it affects them. Even today, some business owners don’t fully understand this.

Today, there are few businesses that don’t collect some type of consumer data. With the new California data privacy law, thousands of companies around the U.S. were impacted. To help everyone navigate this law and understand their rights, use the information found below.

What Does the Law Do?

With the passing of the California Consumer Privacy Act (CCPA), it guaranteed Californians several rights. According to, this includes knowing what personal information about them is collected; knowing if their personal information is being disclosed or sold and to whom; and provides access to their personal information that is collected. 

The law went into effect on January 1, 2020, and enforcement of the law begins on July 1, 2020.

Why is the CCPA Significant? 

The law will help to ease the crisis of trust that is currently present between consumers and the tech industry. Many have noted the similarities between this law and the GDPR, which is used in the EU.

The belief is that a customer’s data belongs to them. It is their data and there are some situations that next-generation technologies, startups, and other companies believe the data is theirs. The passing of the CCPA is considered significant for a few reasons. For example, consumers have become more aware of how very little control they have over their data. A classic example of this is the Cambridge Analytica scandal of Facebook. This is what resulted in the $5 billion fine imposed by the FTC. With the CCPA in place, it gives consumers back control of their data.

Who Does the CCPA Effect?

The businesses that must comply with the CCPA guidelines include any for-profit company that meets one of three conditions. If they earn $25 million or more annually, if they buy, sell, or receive personal data of at least 50K households or consumers, or if it obtains 50% of revenue by selling the personal data of California residents. For business owners who aren’t sure if their business falls under this umbrella, they can have a peek at these guys to learn more about if they must comply.

Understanding the CCPA and how it affects modern businesses can be confusing. Attorneys like Sidley Austin can help those who need more clarification about the law, what it says, and what they must do to comply.

Being informed and knowing what to consider is going to provide the best possible outcome for businesses that must comply with the CCPA. Be sure to keep the information here in mind, as it provides a basic outline of what to consider and what must be done to avoid fines and other penalties for noncompliance. If more questions are had, contacting an attorney for assistance is highly recommended. 

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