The California Consumer Privacy Act (CCPA) was a groundbreaking piece of legislation that changed the way companies collect and store personal data. However, it was quickly followed by the California Privacy Rights Act (CPRA), which built upon the protections established by the CCPA. While these two laws have many similarities, there are some key differences that companies need to be aware of to comply with both regulations. This article will explore the ins and outs of these two laws and what they mean for businesses.
Before diving into the differences between CCPA and CPRA, it’s worth reviewing the basics of these two laws. The California Consumer Privacy Act (CCPA) was first passed in 2018 and came into effect in 2020. It aimed to give Californians greater control over their personal data by requiring businesses to disclose what data they collect and how it’s used. This law applies to businesses that meet certain criteria, such as having annual gross revenues of more than $25 million or collecting personal data from more than 50,000 consumers. The CCPA also gives consumers the right to opt out of data sharing and to request that their data be deleted. One of the key features of the CCPA is the “Do Not Sell My Personal Information” option that businesses must provide on their websites. This option allows consumers to opt out of the sale of their personal information to third parties. The CCPA also requires businesses to provide certain disclosures to consumers, such as a notice at or before the point of collection of personal information. This notice must inform consumers about the categories of personal information being collected and the purposes for which it will be used.
The California Privacy Rights Act (CPRA) is a new piece of legislation that was introduced as a ballot initiative in 2020 and subsequently approved by voters. CPRA builds upon the CCPA by adding new protections for consumers and increasing penalties for non-compliance. One of the key changes introduced by CPRA is the creation of a new category of “sensitive personal information.” This includes information such as social security numbers, driver’s license numbers, and financial account information. Businesses that collect or process this type of information will be subject to additional requirements under CPRA. CPRA also introduces new requirements for businesses that process personal information on behalf of other businesses. These “service providers” will be required to enter into contracts with the businesses they work with that include specific provisions related to data processing and security. In addition to these changes, CPRA also increases penalties for non-compliance with the law. Businesses that violate the law can face fines of up to $7,500 per violation, and consumers will have the right to sue businesses for certain types of data breaches. Overall, CCPA and CPRA represent significant steps forward in protecting the privacy rights of Californians. As technology continues to evolve and the amount of personal data collected by businesses increases, it’s likely that we’ll see further changes to these laws in the years to come.
Overall, CCPA and CPRA represent significant steps forward in protecting the privacy rights of Californians. As technology continues to evolve and the amount of personal data collected by businesses increases, it’s likely that consumers will see further changes to these laws in the years to come.
The Evolution from CCPA to CPRA
The introduction of the CPRA is a response to concerns that the CCPA did not go far enough to protect consumers’ privacy rights. The California Consumer Privacy Act (CCPA) was a landmark legislation that gave Californians the right to know what personal information businesses collect about them, the right to request that their personal information be deleted, and the right to opt-out of the sale of their personal information. However, as with any new legislation, there were concerns about its effectiveness and whether it went far enough in protecting consumers’ privacy rights.
Why was CPRA introduced?
There were several reasons why the CPRA was introduced. Some critics of the CCPA argued that it had loopholes that allowed companies to continue collecting data without consent. For example, the CCPA allowed businesses to collect data for “business purposes,” which was a broad and undefined term that could be interpreted in different ways. Others felt that the CCPA didn’t go far enough in protecting sensitive personal data such as health and financial information.
Additionally, the industry raised concerns that the CCPA was too complex to implement, especially for smaller businesses. The CCPA had different requirements for different types of businesses, based on their size and revenue. This made compliance challenging for small businesses that did not have the resources to hire lawyers and privacy experts. The CPRA aims to address these issues by providing more clarity around regulations and introducing new rights and protections for consumers.
Timeline of CCPA and CPRA Implementation
The CCPA was introduced in 2018 and enforcement began in 2020. The CCPA gave businesses a grace period of six months to comply with the new regulations. During this time, the California Attorney General’s office issued guidelines and held public hearings to clarify the requirements of the CCPA.
The CPRA was passed in November 2020 but will not come into full effect until 2023. This means that businesses have a little more time to prepare for the new regulations under CPRA. The CPRA will introduce new rights for consumers, such as the right to correct inaccurate personal information, the right to limit the use of sensitive personal information and the right to opt out of the sharing of personal information. The CPRA will also create a new agency, the California Privacy Protection Agency, which will be responsible for enforcing the new regulations.
Key Differences Between CCPA and CPRA
One of the main differences is the scope of businesses covered. CCPA applies to companies that meet certain revenue thresholds and collect data from Californians. However, CPRA expands the definition of covered businesses to include those that share data with other companies and collect sensitive personal information. This means that more companies will be subject to the regulations under CPRA.
CPRA also introduces a new category of businesses called “data brokers.” These are businesses that collect and sell consumer data, and they will be subject to additional regulations under CPRA.
Consumer Rights and Protections
CPRA introduces new rights and protections for consumers. For example, CPRA gives consumers the right to correct inaccurate information and to limit the use of sensitive data. Additionally, the CPRA creates a new agency called the California Privacy Protection Agency to enforce these regulations and to protect consumers’ privacy rights.
Under CPRA, consumers will also have the right to opt-out of the sale of their personal information. Businesses will be required to include a “Do Not Sell My Personal Information” link on their websites, making it easier for consumers to exercise this right.
Data Retention and Deletion
CPRA also includes new requirements for data retention and deletion. For example, businesses will be required to delete data upon request and to keep records of their data processing activities. Additionally, businesses will be required to conduct regular risk assessments to identify potential vulnerabilities in their data-handling practices.
CPRA also introduces a new concept called “purpose limitation.” This means that businesses can only collect and use consumer data for a specific purpose, and they cannot use it for any other purpose without obtaining additional consent from the consumer.
Enforcement and penalties
Finally, CPRA increases penalties for non-compliance and creates a private right of action for consumers to sue businesses for data breaches. CPRA further requires businesses to conduct annual cybersecurity audits and to submit a report to the California Privacy Protection Agency. This report will detail the business’s data processing activities and any potential risks to consumer data.
In conclusion, while CCPA and CPRA share some similarities, CPRA expands the scope of regulations and introduces new rights and protections for consumers. It also increases penalties for non-compliance and requires businesses to conduct regular risk assessments and cybersecurity audits. As data privacy continues to be a growing concern, it is important for businesses to stay up-to-date with these regulations and ensure that they are in compliance.
Implications for Businesses
So, what do these differences mean for businesses?
Complying with CCPA was already challenging for many businesses, and CPRA raises the bar even further. For example, businesses will need to implement new policies and procedures to comply with the expanded definition of covered businesses and the new data retention and deletion requirements. Additionally, businesses may need to invest in new technology to ensure that they can comply with these regulations.
Adapting to new regulations
Another challenge for businesses is adapting to new regulations. Businesses that were able to comply with CCPA may need to make significant changes to comply with CPRA. This may involve hiring new staff, conducting training, and investing in new technology.
Potential benefits of CPRA
While complying with new regulations is challenging, there are some potential benefits to CPRA. For example, businesses that comply with these regulations may be able to build greater trust with consumers and avoid costly legal action. Additionally, enhancing data protection measures can help businesses avoid data breaches and other security incidents.
CCPA and CPRA are two important pieces of legislation that aim to protect consumers’ right to privacy. While there are many similarities between these two laws, there are also some important differences that businesses need to be aware of. By understanding these differences, businesses can ensure that they are complying with these regulations and protecting their customers’ personal data. Consult with PPGS ™ to learn more about these and other privacy laws.