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How to meet CCPA compliance requirements.

Created in 2018, the California Consumer Privacy Act (CCPA) is the first comprehensive consumer privacy law in the country. It demands that companies implement certain initiatives to give Californians unparalleled data privacy rights. As a business owner, you may be wondering: Do I need to be CCPA compliant? In this blog, we’ll talk about CCPA compliance requirements, who they affect, and how you can become compliant.

CCPA Compliance Requirements 101

The CCPA may be a revolutionary privacy law here in the states, but it’s nothing we haven’t seen before. In fact, many elements of the CCPA’s compliance requirements emulate rules found in the General Data Protection Regulation (GDPR), a data protection act that regulates how businesses manage the data of consumers in the European Union (EU). The CCPA, however, focuses on Californians and states that these consumers have the right to:

  • Know what personal information is being collected on them
  • Know if that information is being sold and to whom
  • Opt out of having their information sold
  • Obtain a copy of their personal information
  • Receive equal service and price regardless of whether they exert the above rights
  • Sue for damages if their personal information is breached
  • Who Needs To Follow CCPA Compliance Requirements?

Similar to how the GDPR requires compliance if you do business with residents of the EU, the CCPA requires compliance if you do business with residents of California. This means all organizations that serve Californians and have at least $25 million in annual revenue must meet CCPA compliance requirements, even if your company is based in a different state. Even businesses outside of the United States are expected to comply with this regulation.

What Happens If I Don’t Meet CCPA Compliance Requirements?

If you choose to do business in California, then you have 30 days to comply with the law once regulators notify you of a violation. Organizations that achieve compliance within the given timeframe can continue to operate as usual. Failure to reach compliance is a different story, as you may be fined up to $7,500 per record.

On the face of it, that fine doesn’t seem like much for a company. However, that thought changes quickly when you realize how many records can be affected in a breach. Those fines add up quickly for the average data leak.

Additionally, there’s the danger of lawsuits. If a consumer sends notice to your company that they believe their privacy rights were violated, you have a 30-day window to fix the situation. If nothing is done after those 30 days and the attorney general declines to prosecute, that consumer can file a class action lawsuit.

How To Meet CCPA Compliance Requirements

Any company that has to comply with the GDPR shouldn’t have much difficulty meeting CCPA compliance requirements. You can also make the process easier by investing in CCPA compliance consulting. Here are some steps you can follow:

Step 1: Update Privacy Notices and Policies

The CCPA requires that you have a privacy notice informing consumers of the personal information you collect and what that data is used for. You must also explicitly define the categories of personal information that are collected, disclosed, or sold and state that the consumer has a right to opt out. You also need to update your privacy policy to include a description of the consumer rights mentioned earlier.

Step 2: Update Data Inventories

Your organization has to create and manage a data inventory if you don’t already have one. This is a database that tracks all information processing activities.

Step 3: Make Security Updates

Most cloud services encrypt the data you store with them, scrambling the information from outside. This process makes it so that the information is harder to steal and is only accessible to those with the proper authorization.

Real-Time Data Monitoring

Many cloud security services also offer real-time data monitoring, which can identify inconsistent or abnormal user behavior, like sign ins from an unknown IP address or device. With real-time monitoring, these occurrences can be flagged by the system, catching possible breaches before they occur.

Consistent Software And Security Updates

All businesses should have reliable cybersecurity measures. The CCPA requires you to protect consumer information with “reasonable” cybersecurity. You can quickly improve your cybersecurity posture by partnering with a provider like 42, Inc.

Step 4: Update Third-Party Processor Agreements

Do other companies process your data? If so, you need to update your third-party contracts to require that your vendor uses data inventories, completes due diligence questionnaires, provides records of processing, and more.

Step 5: Train Your Employees

The CCPA requires that all employees who handle consumer inquiries be knowledgeable of the CCPA compliance requirements.

Become CCPA Compliant With 42, Inc.

If you need to achieve CCPA compliance, 42, Inc. is here for you. We can perform a CCPA audit to assess what you need to reach compliance. After the audit, we work with you to implement those changes. You never have to worry about compliance again with 42, Inc. by your side.

Contact us today to learn more.