California Consumer Privacy Act Overview
1. Introduction
The California Consumer Privacy Act (CCPA) represents California’s landmark privacy legislation, establishing comprehensive consumer rights and business obligations regarding personal information. Effective from January 1, 2020, and enhanced by the California Privacy Rights Act (CPRA) in 2023, it marks the strongest privacy protection for consumers in the United States, setting new standards for data privacy and consumer rights.
The Act fundamentally changes the privacy landscape by giving California residents unprecedented control over their personal information, requiring businesses to be transparent about their data practices, and establishing clear consequences for non-compliance. It serves as a model for other state privacy laws and reflects the growing demand for stronger privacy protections in the digital age.
2. Scope and Application
The CCPA applies to businesses that collect personal information from California residents and meet specific thresholds. Unlike other privacy regulations, it specifically targets larger businesses and data brokers, using clear revenue and data processing thresholds to determine applicability.
| Business Type | Threshold Requirements | Obligations |
|---|---|---|
| Large Businesses | Annual revenue over $25 million | Full compliance with all CCPA requirements |
| Data-Intensive Businesses | Data from 100,000+ consumers/households | Full compliance with all CCPA requirements |
| Data Brokers | 50%+ revenue from selling personal info | Additional registration and compliance obligations |
Protected Information Categories
| Category | What It Includes | Plain Language Example |
|---|---|---|
| Direct Identifiers |
– Name and address – Email address – Social Security number – Driver’s license | Information that directly points to who you are, like your name on a mailbox |
| Online Activity |
– Browsing history – Search history – Website interactions – App usage | Digital footprints you leave while using the internet, like your Netflix viewing history |
| Protected Classifications |
– Race and ethnicity – Religion – Gender – Age | Personal characteristics that are protected by law, like your age or background |
3. Core Consumer Rights
The CCPA establishes fundamental rights for consumers regarding their personal information, requiring businesses to provide mechanisms for exercising these rights. These represent the heart of the legislation and mark a significant shift toward consumer control over personal data.
| Right | What It Means | How It Works in Practice |
|---|---|---|
| Right to Know | Consumers can ask what personal information a business has collected and how it’s used | Like being able to see your complete customer file, including what information was collected and who it was shared with |
| Right to Delete | Consumers can request deletion of their personal information | Similar to being able to erase your account and all associated information from a service |
| Right to Opt-Out | Consumers can stop the sale or sharing of their personal information | Like having a “Do Not Disturb” sign for your personal information |
| Right to Non-Discrimination | Businesses can’t treat consumers differently for exercising their rights | Like ensuring you get the same service whether or not you share your data |
4. Business Obligations
Businesses must implement specific measures to comply with the CCPA and handle consumer requests effectively. This includes both technical and operational requirements to ensure proper data handling and timely response to consumer rights requests.
| Obligation Type | Key Requirements | Practical Implementation |
|---|---|---|
| Notice and Transparency |
| Like having clear signs in a store explaining what information is collected and how it’s used |
| Response Procedures |
| Like having a well-organized customer service system for handling privacy-related requests |
| Security Measures |
| Like having good locks on doors and security cameras in a physical store |
5. Enforcement
The California Privacy Protection Agency (CPPA) enforces the CCPA through investigations and civil penalties. Violations can result in significant fines, particularly for breaches involving unencrypted personal information or children’s data. The law provides for both regulatory enforcement and private rights of action in certain cases.
Penalties can range from $2,500 for each unintentional violation to $7,500 for each intentional violation or violation involving minors’ data. The private right of action for data breaches can result in statutory damages between $100 and $750 per consumer per incident, or actual damages, whichever is greater.