Introduction to CCPA & CPRA

The California Consumer Privacy Act (CCPA), effective from January 1, 2020, is a law ensuring businesses in California safeguard the personal data of their residents, offering rights like data access, deletion, and the option to opt out of data sales. Building on this, the California Privacy Rights Act (CPRA), passed in November 2020, is an amendment expanding resident rights, including data correction and stricter usage limits on sensitive data. It broadens the definition of personal data and brings about a new enforcement body – the California Privacy Protection Agency. CPRA will be enforced starting January 1, 2023. Both laws cover any entity processing California residents' data, regardless of the entity's location.

Consequences of Non-Compliance

Both CCPA and CPRA empower the California attorney general to penalize defaulters. For CCPA, fines can reach up to $2,500 per violation or $7,500 for intentional breaches. CPRA introduces heftier fines, potentially up to $7,500 per infringement. Reasons for fines span from not announcing data collection, not offering opt-out options, to not reporting data breaches. Beyond financial penalties, authorities can enforce data processing cessation, mandate corrections, or even reprimands. Additionally, affected individuals can sue non-compliant businesses.

Preparation for Compliance

With CCPA & CPRA marking significant privacy benchmarks, other states are also proposing their own privacy legislation. For businesses, this means an intricate patchwork of state-wise data laws to navigate. To remain compliant, continuous updates on these evolving regulations are essential. Businesses should monitor legislative updates and engage with legal counsel when new laws emerge to ensure compliance.

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