What are the CCPA and CPRA?

In this digital age, protecting personal information has become more critical than ever, especially when considering the privacy laws' intricacies in the Golden State. California leads the way with its robust privacy legislation aimed at safeguarding individuals' data rights.

Two key acts that come into play are CCPA and CPRA. But what exactly do these acronyms stand for? And what sets them apart? Here is a look at the California Privacy Laws and uncover who needs to comply with these groundbreaking regulations.

What is CCPA?

The California Consumer Privacy Act, or CCPA for short, was enacted in 2018 and became effective on January 1, 2020. It aims to give Californian consumers more control over the personal information businesses collect. The act applies to companies that exceed certain thresholds regarding revenue or data processing activities.

Under the CCPA, individuals have the right to know what personal information businesses are collecting about them and how it is being used. They also have the right to request the deletion of their data and opt-out of its sale if applicable. Businesses are required to be transparent about their data collection practices through privacy policies and must implement measures to protect consumer information.

The CCPA imposes strict penalties for non-compliance, including fines and potential lawsuits from affected consumers. It empowers individuals by giving them a say in how their personal data is handled and creates greater transparency between businesses and consumers when it comes to privacy rights.

The CCPA establishes a strong foundation for privacy protection in California but has undergone some updates since its inception. Now let's explore another significant legislation related to privacy rights: CPRA!

What is CPRA?

The California Privacy Rights Act (or the CPRA) is a new privacy law that builds upon the existing California Consumer Privacy Act (or the CCPA). Passed in November 2020, CPRA aims to strengthen and expand privacy rights for Californians by introducing additional measures and regulations.

One of the key changes introduced by CPRA is the creation of a new enforcement agency called the California Privacy Protection Agency (or CPPA). This agency will be responsible for enforcing both CCPA and CPRA, ensuring that businesses comply with the strict privacy requirements outlined in these laws.

CPRA also introduces several new provisions that further enhance consumer rights. For example, it expands on data breach notifications, requiring companies to provide more detailed information when notifying consumers about breaches. It also establishes new rights related to sensitive personal information, allowing consumers to exercise greater control over how their sensitive data is collected and used.

CPRA represents an important step forward in protecting consumer privacy in California. By strengthening existing regulations and introducing additional safeguards, this law aims to give individuals more control over their personal information while holding businesses accountable for their data practices.

What Are the Differences Between Them?

When it comes to privacy laws, California has been at the forefront of protecting its residents' personal information. The California Consumer Privacy Act was implemented in 2020 and aimed to give individuals more control over their data. However, there has been an update to this act known as the California Privacy Rights Act, which started to come into effect in 2023.

So, what are the differences between the CCPA and the CPRA exactly? Let's take a look!

• One major difference is that CPRA expands upon CCPA's requirements by introducing new rights for consumers. For example, under CPRA, individuals have the right to correct inaccurate personal information held by businesses.
• Another key difference lies in enforcement. While both acts grant authority to the Attorney General to enforce compliance with privacy regulations, the CPRA establishes a separate agency called the CPPA. This agency has more power and resources dedicated solely to enforcing privacy laws.
• Additionally, CPRA introduces stricter rules around data sharing and processing. It requires businesses to limit their use of personal information and obtain explicit consent from consumers if they want to share or sell their data. This includes people search sites and the like, and it gives consumers the ability to opt out of their criminal records and other personal information being put on these sites.
• In terms of scope, CCPA applies only to for-profit businesses that meet certain criteria, such as annual gross revenue thresholds. On the other hand, CPRA expands this scope by adding additional criteria such as handling sensitive personal information or selling large amounts of consumer data.

While both CCPA and CPRA aim at safeguarding consumer privacy rights in California, it is clear that CPRA takes things a step further by strengthening protections and expanding individual rights even more than its predecessor.

Who Needs to Comply with These Acts?

Both the CCPA and CPRA have implications for businesses that collect, use, or share personal information of California residents. The exact requirements vary depending on the size of the business and the nature of its data processing activities.

Under CCPA, businesses must comply if they meet one or more of the following criteria:

• Have an annual gross revenue exceeding $25 million.
• Buy, receive, sell, or share personal information of 50,000 or more California consumers annually.
• Derive 50% or more of their annual revenue from selling California consumers' personal information.

CPRA builds upon these requirements and introduces additional obligations for certain types of businesses starting in 2023:

• Businesses that buy or sell the personal information of 100,000 or more consumers/households.
• Entities that derive at least 50% of their annual revenue from sharing/selling personal information.

It is important for businesses to carefully assess whether they fall under the scope of these privacy laws and take appropriate measures to ensure compliance. Failing to do so can lead to potential legal consequences and reputational damage.

While both CCPA and CPRA aim to protect Californians' privacy rights by regulating how their personal information is collected and used by businesses, the CPRA brings enhanced consumer protections along with increased compliance obligations for covered organizations.

The constantly evolving landscape surrounding data protection highlights why it's crucial for businesses across various industries to stay informed about privacy regulations like these acts in order to adapt accordingly and protect their customers' data.