California Consumer Privacy Act: Will It Affect Your Business?

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In June 2018, the State of California passed the California Consumer Privacy Act (CCPA). It goes into effect in January 1, 2020, and many businesses are already preparing for impact. The CCPA could set the stage for new privacy laws throughout the U.S., as many companies will have to set privacy policies and procedures for 1) California, and 2) the rest of the U.S.

What Is the CCPA?

In sum, the CCPA will give California residents the right to the following:

  • Know what information businesses collect about them
  • Know if and how their information is being disclosed
  • Know if and to whom their information is being sold
  • Request a company to delete their personal information
  • Access their personal information collected by a business
  • Be able to opt out of the sale or disclosure of their personal information

The CCPA doesn’t require businesses stop collecting personal information entirely. It requires businesses to request permission to disclose, sell, or use customers’ personal information in any way. Businesses must also give consumers the choice to opt out.

This law applies to business that operate in California, even businesses that aren’t located in California.

Further details, definitions, exemptions, and more are addressed in this helpful guide from Skadden, Arps, Slate, Meagher & Flom LLP and Affliates.

In the guide, you can also find compliance guidelines as you consider how this might affect your business.

 


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