Starting Jan. 1 of next year, the California Consumer Privacy Act (CCPA) will go into full effect, The Next Web reports. Companies that do business with Californians and not in compliance with the new law can face a fine for thousands of dollars.
The purpose of the CCPA is to update the way that businesses collect consumers’ information. Consumers will have more control over which pieces of their information are being collected, sold, and disclosed, and to whom. They will also be able to better access to their personal data, deny sharing it, and receive the same pricing and services whether or not they’ve exercised privacy rights.
According to The Next Web, the companies that will be affected by the CCPA include legal for-profits that operate in the Golden State, collect consumers’ personal information, and fall under any of these stipulations:
- Have an annual gross revenue that totals $25 million or higher
- Buy, receive, sell, or share consumer data from 50,000 or more consumers, households, or devices
- Make the majority of their annual revenue from selling personal data
Companies that don’t comply with the CCPA can be sued by California citizens, and face $7,500 fines “for each violation that hasn’t been addressed after just 30 days,” The Next Web says.
Companies are able to start preparing for the CCPA now, particularly by aligning content management systems with the law-to-be, and getting their tech team ready for changes. Examples of this include making a company’s tech infrastructure more flexible to future legal changes, and making sure content management systems can integrate with customer relationship management software where “consumer data is both safe and accessible.”
Decision makers should also be on the look out for similar laws down the line, since other states may follow California’s lead. “The CCPA is also a sign of more changes to come,” The Next Web says. “California wasn’t the first to crack down and it certainly won’t be the last.”