How the California Privacy Rights Act Will Affect Businesses and Consumers

The History of the California Privacy Rights Act

In 2018, the California Consumer Privacy Act (CCPA) was enacted, which was the first comprehensive privacy law in the United States. The CCPA granted California residents certain rights over their personal information, such as the right to know what personal information was collected, the right to delete personal information, and the right to opt-out of the sale of personal information.

However, the CCPA was criticized for its vague language and its lack of clarity regarding the definitions of certain terms. As a result, the California Privacy Rights Act (CPRA) was introduced and passed on the November 2020 ballot as a ballot initiative.

The Key Features of the California Privacy Rights Act

The CPRA builds on the CCPA and includes several new provisions that will affect both businesses and consumers. Here are some of the key features of the CPRA:

• Creation of a new enforcement agency: The CPRA will create the California Privacy Protection Agency (CPPA), which will be responsible for enforcing the privacy rights of California residents.
• Expanded definition of "personal information": The CPRA expands the definition of "personal information" to include sensitive personal information, such as a person's race, ethnicity, and health information.
• Increased fines for violations: The CPRA increases the fines for violations of the privacy law, up to $7,500 for each intentional violation.
• Right to correct personal information: The CPRA grants California residents the right to correct inaccurate personal information.
• Right to limit the use of sensitive personal information: The CPRA grants California residents the right to limit the use of their sensitive personal information.

How the CPRA Will Affect Businesses

The CPRA will have a significant impact on businesses that collect and process personal information of California residents. Here are some of the ways in which the CPRA will affect businesses:

• Compliance requirements: Businesses will need to implement policies and procedures to comply with the new requirements of the CPRA.
• Additional data protection measures: Businesses will need to implement additional data protection measures to ensure the security of personal information, including encryption and access controls.
• Increased fines for non-compliance: Businesses will face increased fines for non-compliance with the CPRA, which could be as high as $7,500 per intentional violation.
• New data retention requirements: The CPRA includes new data retention requirements, which may require businesses to delete personal information after a certain period of time.

How the CPRA Will Affect Consumers

The CPRA will also have a significant impact on consumers in California. Here are some of the ways in which the CPRA will affect consumers:

• Increased privacy rights: The CPRA grants consumers additional privacy rights, including the right to correct inaccurate personal information and the right to limit the use of sensitive personal information.
• Increased control over personal information: The CPRA grants consumers more control over their personal information, including the ability to opt-out of the sale of personal information.
• Increased transparency: The CPRA requires businesses to provide more transparency about their data collection and processing practices.

Conclusion

The California Privacy Rights Act will have a significant impact on both businesses and consumers in California. Businesses will need to implement new policies and procedures to comply with the new requirements of the CPRA, while consumers will benefit from increased privacy rights and control over their personal information. The CPRA is a significant step forward in protecting the privacy of California residents and may serve as a model for future privacy laws in other states.