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CCPA Enforcement is Coming Soon — Are You Ready?

Posted Jun 4, 2020

In recent years, consumers’ growing concerns regarding digital privacy have prompted legislators to pass policies to protect their data. The General Data Protection Regulation (GDPR) went into effect in 2018 and not only affected organizations and residents in the European Union but created a massive shift for companies around the world. As you may know, the California Consumer Privacy Act of 2018 (CCPA) went into effect in January of this year but companies were given a half-year grace period to prepare. 

At AdColony, we’ve recognized privacy as a top priority and have developed resources to help you navigate this ever-evolving space. The Article 17 series features in-depth interviews with tech company privacy attorney and expert Alan Chapell, regarding the current state of privacy regulations. This week, we’re sharing a quick and easy guide to help you understand and prepare before CCPA is enforced on July 1.


What is CCPA and does it apply to your company?

The State of California Department of Justice states, “CCPA grants California consumers robust data privacy rights and control over their personal information, including the right to know, the right to delete, and the right to opt-out of the sale of personal information that businesses collect, as well as additional protections for minors.” Like GDPR, CCPA also gives people the right to know what information companies collect about them.

The California Attorney General’s (AG) Office has said it plans to enforce CCPA on July 1 and is poised to make a major impact for businesses inside and outside of state lines. Although this is a state law, its reach is national (and possibly international) because it affects any business made available to California residents. If your headquarters is in Texas, but consumers living in California can access your website and their data is captured, your business could fall under CCPA regulation. Here are guidelines to determine if you are subject to CCPA:

The CCPA will apply to businesses around the world if they exceed one or more of the following thresholds:

  • Annual gross revenues in excess of  $25 million 
  • Annually buy, sell, receive, or share for commercial purposes the personal information of 50,000 or more consumers, households, or devices; or
  • Derive 50% or more of its annual revenues from selling consumers’ personal information.

Tips to Ensure CCPA Compliance

  • Update your privacy notice.
    The most urgent thing to do is to provide consumers and any California-based employees notice of their rights with respect to their data. This includes identifying the categories of Personal Information that is collected, the purpose of collection, and the practices used to receive this data. Businesses are also required to provide a description of the consumers’ rights, the methods for consumers to exercise them, the methods by which the business will verify the consumers’ identity, and the ability for consumers to opt-out of the sale of their information.
  • Offer consumers the chance to opt-out.
    Your company website must have a conspicuous link within your privacy and on the bottom of your homepage  that says “Do Not Sell My Information.” This allows consumers to opt-out of the selling of their personal information.
  • Providing multiple methods for consumers to make requests. 
    Companies are required to provide at least two methods to enable consumers to make requests. One must be a toll-free phone number and the other must be made available through a website.
  • Train employees on a process for fielding requests.
    Create a well-documented process to make sure employees are trained to handle consumer requests in a manner that is consistent with CCPA. This will ensure that responses will be complete and accurate and will help reduce the risk of penalties.

For more detailed information on CCPA, visit the CCPA website or download the CCPA Fact Sheet.

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