Description
The California Consumer Privacy Act (CCPA) is a landmark piece of legislation enacted in 2018 aimed at protecting the privacy rights of California residents. It grants individuals greater control over their personal information collected by businesses. Under CCPA, consumers have the right to know what personal data is being collected, the purpose of its collection, and the ability to request deletion of their data. Businesses are required to provide clear notices about data collection practices and comply with requests from consumers. CCPA also prohibits businesses from selling personal data of consumers who opt-out. With the rise of digital data collection, CCPA represents a significant shift towards greater transparency and accountability, setting a precedent that may influence similar laws across the United States. The act is part of a broader trend in the Governance, Risk, and Compliance (GRC) industry, where organizations must adapt to evolving data privacy regulations to mitigate risks and ensure compliance.
Examples
- A consumer can request a company like Facebook to disclose what personal data they have collected about them.
- A user can opt-out of data sales when shopping online, for example, at a retailer like Target.
Additional Information
- CCPA applies to businesses with annual gross revenues over $25 million, those that buy/sell personal data of 50,000 or more consumers, or that derive 50% or more of their revenue from selling consumers' personal information.
- The law has inspired other states, such as Virginia and Colorado, to propose similar legislation, highlighting the growing importance of consumer privacy in the digital age.