We know it’s just state-level but it’s here now. Let’s talk about CCPA and how it’s going to protect consumers and fine businesses.
The California Consumer Privacy Act (CCPA) is now taking effect after a year and a half of its signing. It is a state-level law that is focused on businesses that utilize users’ data in order to make make money. The CCPA is in place to force companies to inform users on how their data will be used and give them a clear option to decline.
CCPA also covers the arrest of any tech companies that will use customer’s personal data without their permission. A six-month grace period will be given to these companies if they are found guilty of the accusations.
What does CCPA entail
CCPA denotes protection for everyone in the state of California. Here’s the summary of what the regulation is all about for both consumers and businesses:
- While it’s important for businesses to convey how they’re utilizing the data this also includes the third-parties they share the data with.
- In addition to opting out of data collection, businesses are also required to delete the information that was pulled from users in the past if requested
- The new changes are mandatory for businesses, though financial incentives can be offered to users in exchange for data
- Authorities have been equipped with the power to fine offending businesses.
The importance of CCPA
California wisely established a protection program for its own residents. However, companies affected by the CCPA have raised major concerns on how the new law will limit their business.
“The proposed regulations are intended to operationalize the CCPA and provide practical guidance to consumers and businesses subject to the law,” writes the State of California’s Department of Justice in a press release announcing the draft text. “The regulations would address some of the open issues raised by the CCPA and would be subject to enforcement by the Department of Justice with remedies provided under the law.”
Numerous internet-reliant businesses have publicly opposed the CCPA saying it is unnecessary regulation. Marketers want a federal law instead but the call for federal regulation is just a transparent stall tactic since an adequate hearing and bill will take a year or more of intensive work. The said proposal of a federal regulation is just an excuse for many marketers not to adhere to the CCPA released today.
Offenses with fines will be assessed starting this June. It is a six-month consideration after the official activation of CCPA. This is a necessary part of the regulation to review honest mistakes. There will be thousands of dollars per violation, a similar scale if added up to tech giants such as Google and Facebook.
CCPA is urgent and necessary
Adapting to the regulation will be difficult but is essential to the growth and integrity of a company. Any establishment that is not yet working on getting to be a CCPA compliant, will better to get started now.
Brands and marketers based in California will have to align their strategies to CCPA to avoid complaints and paying per violation they commit. This is imperative especially for brands that collect users’ data for their targeting ads.