California’s New Consumer Privacy Act (CCPA)

CCPA

Daily, user input has been aggregated on the Internet, producing an infinite amount of accessible data, and creating for online companies a multi-trillion dollar industry of information exchange.

No one truly knows how far their online information travels to produce data points for which companies and for what ultimate outcomes. According to the Pew Research Center, up to 8 out of 10 internet users express concern over what companies do with their data, while they increasingly understand that the use of their online input is almost entirely out of their control.

Lock In Privacy

The State of California has moved to counteract the profuse collection of user data that perpetually occurs virtually without permission.

As of January 1, 2020, a legal milestone in California gives consumers the right to view the personal information collected about them and to stop companies from selling it. This law is the California Consumer Privacy Act (CCPA).

Privacy advocates contemplate the likelihood of consumer rights provided by the CCPA extending beyond the state, with California possibly being the leading edge that emboldens other states to legislate consumer privacy and even inspire a national law.

Here are some primary CCPA mandates:

  • Businesses must disclose what information they collect, for what business purpose(s) they collect the information and any third parties with whom they share that data.
  • Businesses will be required to comply with official consumer requests to delete that data.
  • Consumers can opt-out of their data being sold, and businesses can’t retaliate by changing the price or level of service.
  • Businesses can, however, offer “financial incentives” for being allowed to collect data.
  • California authorities are empowered to fine companies for violations.

California’s resolve to protect internet users’ and consumers’ privacy will undoubtedly bring significant changes to the online marketplace. The positive or negative effects of the CCPA on businesses will probably take years to determine. But the CCPA’s positive effect on consumers is expected to be immediate.

You can find more information about the California Consumer Privacy Act on the following sites:

TechCrunch: California’s Privacy Impact Act – What you need to know

USA Today: California Consumer Privacy Act of 2020: What the new privacy law means to you, from which the bulk of this information was derived

TechCrunch: The California Consumer Privacy Act Officially Takes Effect Today, an information contributor

 

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