Overview of the California Privacy Rights Act (CPRA)
Online users have become increasingly concerned about managing their data in recent years. The exchange of personal information has propelled the growth of tech giants, underscoring a fundamental truth in the Web 2.0 era: user data is a precious asset. However, a shift is happening, fueled by the rising demand for online privacy.
The California Privacy Rights Act (CPRA), often called “CCPA 2.0,” marks a significant advancement in U.S. data privacy laws. CPRA introduces key provisions that build on the foundation laid by CCPA. As mentioned, these include enhanced consumer rights, stricter compliance requirements, and the creation of a new regulatory agency, the California Privacy Protection Agency (CPPA). As you prepare your business for these changes, staying informed about CPRA is essential to ensure your operations align with the latest legal standards.
Key Provisions of CPRA
Understanding the CPRA demands familiarity with a few of the services it provides. Let’s look at those services:
- Consumer Rights:
The CPRA strengthens consumer rights by extending access to the consumer’s personal data and allowing corrections to inaccuracies. Consumers now have the right to limit the use of sensitive personal information, giving them more control over how their data is handled.
- New Regulatory Agency:
A significant addition under CPRA is the creation of the California Privacy Protection Agency (CPPA). This new regulatory body is responsible for enforcing the law, providing businesses with clear guidelines, and ensuring compliance with the updated privacy standards.
- Enhanced Penalties:
CPRA also introduces enhanced penalties for non-compliance. Businesses can face increased fines; unlike before, there’s no grace period for violations. This change underscores the importance of adhering to CPRA’s strict requirements.
Compliance Requirements
Under CPRA, compliance isn’t optional. It imposes many new and improvised rules to ensure transparency and accountability in data-centric practices. Ingestlabs complies with all the set rules, providing its consumers’ data with the necessary integrity.
Who does it apply to?
The law applies to businesses, service providers, and third parties that handle California residents’ data. Different entities have distinct obligations under the CPRA. To comply with the law’s requirements, businesses, service providers, and third parties must follow strict data handling, security, and usage guidelines. Understanding these responsibilities is critical to avoiding penalties and maintaining trust with your audience.
CPRA’s Compliance Criteria for Entities:
The California Privacy Rights Act (CPRA) applies to for-profit businesses that are involved in the collection of personal information from residents and meet any one of the following criteria:
- High Revenue Cutoff:
Companies with over $25 million in annual revenue fall under CPRA, focusing on businesses with substantial consumer impact.
- Large-scale Data Handling:
CPRA applies to businesses managing the personal information of over 100,000 consumers, households, or devices, targeting large-scale data processors while easing smaller enterprises.
- Profit from Private information:
Businesses earning 50% or more of their revenue from selling or sharing consumer data must comply with CPRA, targeting those profiting from data monetization.
Businesses that don’t meet these criteria are generally exempt, but not necessarily. This list will help you check whether your company is exempt or not.
Practical Steps for CPRA Compliance
The California Privacy Rights Act (CPRA) strictly implements rules for specific data privacy practices for businesses. “For us at Ingestlabs, compliance is not just a legal necessity but a commitment to ethical and responsible business practices.” Here are the steps to CPRA compliance:
- Perform a Personal Data Audit
Identify the various kinds of data you collect and how you organize, store, and access it. Also, know what susceptible personal information (SPI) is, as CPRA defines it. Identify if third parties store or retrieve this data. This review will guide your privacy policies, cookie banners, and agreement updates.
- Categorize Data Confidentiality
Sort your data by its sensitivity level to apply appropriate security measures. This helps your security squad identify which data needs more protection and which has specific retention limits.
- Upgrade Privacy Policy and Cookie Banners
Update your cookie banner to outline whether and how you collect and process SPI. Provide information on the purposes of data collection and the periods for which you can retain it. Ensure that users know their rights concerning the sale or sharing of their details and elicit how they can opt out.
- Reassess Terms and Agreements with Partners
Verify agreements and contracts with partners, service providers, and third parties comply with CPRA.
- Instruct Staff on Data Handling
Train employees on CPRA and correct data handling to reduce compliance risks.
- Administer Opt-Out Links
Incorporate clear links on your website for users to opt out of personal data sharing and limit the use of their sensitive information.
- Implement Channels for Consumer Requests
Offer at least two accessible channels (phone, email, web forms) for consumers to request data. As per CPRA, acknowledge within 10 days and fulfil within 45 days.
Penalties for Non-Compliance
Non-compliance with the CPRA comes with severe consequences. The law imposes significant penalties on businesses that fail to meet its requirements. These penalties can quickly add up, especially if violations involve sensitive personal information or data belonging to minors. Understanding the CPRA’s rules and taking steps to ensure your business stays compliant is crucial.
Enforcement Authorities:
The CPRA has set up the California Privacy Protection Agency (CPPA), a new regulatory body with the authority to enforce the law and penalize non-compliance. The CPPA’s duties include:
- Issuing regulations to clarify and implement CPRA provisions.
- Directing investigations and audits of businesses’ data practices.
- Enforcing compliance through administrative actions and fines.
- Educating both companies and consumers about their rights and responsibilities under the CPRA.
Civil Penalties and Fines for Violations:
The CPRA enforces substantial penalties for non-compliance, including:
- Civil fines of up to $2,500 for each unintentional violation and up to $7,500 for each intentional violation or for mishandling minors’ personal information.
- Higher fines for breaches involving unauthorized access, theft, or disclosure of sensitive personal data.
Businesses have a 30-day window to correct alleged violations after receiving notice from the CPPA. This allows them to resolve issues and avoid penalties if they take swift corrective action.
Consumer Rights Under CPRA
The California Privacy Rights Act (CPRA) provides a broad definition of personal information to safeguard individuals. This includes any data that identifies, relates to, describes, or could be linked to a person, whether directly or indirectly. Important categories include Identifiers, Biometric Information, Internet Activity, Commercial Information, and Employment and Educational Data.
- Right to Correct Inaccurate Personal Information:
The CPRA grants consumers the right to request corrections to inaccurate personal data, ensuring better data accuracy and integrity.
- Right to Limit Use of Sensitive Personal Information:
Consumers can now limit the use and disclosure of their sensitive personal information. Businesses must allow restrictions to only what’s necessary for providing the requested services or goods.
- Opt-Out Rights:
Expanding on the CCPA, the CPRA allows consumers to opt out of sharing personal information for behavioral advertising. Businesses must display a “Do Not Sell or Share My Personal Information” link on their websites.
- Non-Discriminatory Rights:
The CPRA strengthens protections against discrimination for consumers exercising their privacy rights. Businesses cannot alter services, pricing, or quality based on consumers’ privacy choices.
Here at Ingestlabs, we comply with these rules to have you secure all its perks.
CPRA Implementation Timeline
The CPRA officially took effect on January 1, 2023. Since then, businesses have been required to comply with the new regulations, making it crucial to understand how these changes impact data practices.
Enforcement of the CPRA began on July 1, 2023. Organizations needed to be fully prepared to meet the new standards by then. Because not doing so would lead to heavy fines levied on themselves. Let’s read about a few instances:
- Google, LLC in a stipulated judgment, agreed to pay $93 million to resolve allegations that the technology company’s location-privacy practices violated California consumer protection laws.
- Equifax, in a nationwide settlement, agreed to pay a total of up to $600 million to resolve allegations that it improperly exposed the personal information of 147 million consumers, including 15 million Californians, in a 2017 data breach.
- In another instance, DoorDash, Inc., in a stipulated judgment, agreed to pay $375,000 to resolve allegations that the food delivery platform had sold the personal information of its customers without providing notice or the opportunity to opt-out, in violation of the California Consumer Privacy Act and the California Online Privacy Protection Act.
This means updating privacy policies, ensuring that your teams are trained, and aligning your data management practices with the law. Staying ahead of these deadlines helps protect your business from potential penalties.
Conclusion
Understanding and complying with the CPRA is essential for any business handling personal data in California. The CPRA strengthens consumer rights and imposes stricter obligations on companies to protect sensitive information. You can safeguard your reputation and avoid costly penalties by focusing on accurate data management and proactive compliance.
IngestLabs is committed to helping you navigate these changes while incorporating our services- Ingest IQ, Ingest ID, and Event IQ, into your business strategies. Implementing effective CPRA strategies will ensure that your marketing operations remain compliant and efficient, setting you up for long-term success in a privacy-conscious world. Meet with us today and learn more about how we comply with the CPRA and only work to your advantage while safeguarding your data.