CCPA - Cynexlink

On January 1, 2020, the California Consumer Privacy Act takes effect. For literally hundreds of thousands of companies who collect any kind of user data, the time to get prepared is now because non-compliance could be very costly.

What does it do?

The CCPA is meant to protect California residents from the abuse of their personal data. In doing so, it gives consumers four new digital rights:

RIGHT TO KNOW

Consumers can ask what personal info a business has collected about them, where it came from, how the data is used, if it is being sold and what other parties have access to the information.

RIGHT TO OPT OUT

Consumers have the right to opt-out of their information being sold. For consumers under the age of 16, businesses cannot sell their data without written opt-in from the consumer or their parent.

RIGHT TO DELETE

Consumers can request the deletion of their information, with some exceptions for data that must be maintained in order to provide the company’s fundamental service to a client.

RIGHT TO EQUAL SERVICE

If a business discriminates against consumers for exercising their rights from the CCPA (charges higher prices to those who opt-out, for example), it will be in violation of the act.

What companies does it impact?

For-profit companies that collect or control California residents’ data and meet one or more of the following requirements:

Generate $25 million in gross annual revenue or more
Handle data of more than 50,000 people or devices
50% or more of revenue comes from selling personal information

Note: the CCPA applies to any company meeting the above criteria, regardless whether it has a physical presence in the state.

What is the risk of non-compliance?

The CCPA will be enforce by the state’s Attorney General, but also by right of private action,which means class action lawsuits will abound. Penalties can range up to $7,500 per violation – meaning per customer! If only a tiny fraction of the state’s 40 million residents are affected, the penalties can become rather astounding.

How can Cynexlink help?

Inventorying your data, documenting new procedures, aligning department heads and creating an audit trail of customer data requests… these are daunting tasks.

Almost as daunting is choosing the right consultants to help your company comply. We have vetted countless providers and know who the masters truly are and help our clients find the right solution, a service that is FREE to our clients.