What is CCPA Compliance

What is CCPA compliance?

The California Consumer Privacy Act (CCPA) is a data privacy law that governs how companies collect, process, and share personal information about California consumers. Compliance with the CCPA requires businesses to implement specific privacy measures and uphold consumer rights regarding data transparency, control, and security.

CCPA compliance plays a critical role in contracts when businesses engage third-party vendors or service providers. Contracts must include clauses that ensure vendors handle consumer data according to CCPA standards, including opt-out rights and data deletion requirements. These contractual safeguards help businesses protect consumer privacy throughout the contract’s lifecycle. For more details on managing contracts with compliance in mind, visit our blog on contract compliance.

What are the key components of CCPA compliance standards?

For businesses subject to the CCPA, compliance focuses on 4 core areas:

1. Data access and portability: Consumers have the right to request and receive details about the personal data a company has collected about them over the past 12 months, including specific pieces of data, data categories, and data sources.
2. Right to deletion: The CCPA mandates that businesses must delete a consumer’s personal data upon request, except in cases where retaining the information is necessary to complete transactions, detect security incidents, or comply with legal obligations.
3. Opt-out of data selling: Consumers can opt out of the sale of their personal information. Companies must provide a clear “Do Not Sell My Personal Information” link on their homepage to facilitate this opt-out option, particularly if they sell personal data to third parties.
4. Non-discrimination: Businesses cannot discriminate against consumers who exercise their CCPA rights, such as by denying services, charging different prices, or providing a lower level of service.

Who needs to comply with CCPA?

The CCPA applies to companies doing business in California that meet one of the following thresholds:

For instance, a tech company collecting data from California residents ensures its contracts include clauses that allow consumers to opt out of data sharing, thus aligning with the CCPA. Another example would be that of a vendor contract updated to include CCPA requirements, ensuring that the vendor securely handles, processes, and deletes customer data upon request, protecting consumer privacy throughout the contract lifecycle.

What are the rights provided to consumers under CCPA?

The CCPA grants seven key rights to consumers:

1. Right to know: Consumers can ask which personal data is collected, processed, and shared.
2. Right to access: Individuals can request a copy of their data.
3. Right to delete: Consumers can request that companies delete their personal data.
4. Right to opt-out: The CCPA allows consumers to opt out of their data being sold.
5. Right to non-discrimination: Businesses cannot treat consumers differently for exercising their CCPA rights.
6. Right to correct: Consumers can request correction of inaccurate personal information.
7. Right to limit: Consumers can limit the use of sensitive data, such as biometrics.

How are GDPR and CCPA different from each other?

While the CCPA is specific to California, the General Data Protection Regulation (GDPR) applies to data processing in the European Union. Both laws prioritize consumer privacy, but GDPR emphasizes data protection for individuals within the EU and involves stricter consent requirements for data collection. The GDPR is more comprehensive in scope and often requires appointing a Data Protection Officer (DPO). At the same time, the CCPA is specific to California but may evolve to influence U.S. privacy laws more broadly.

As consumer privacy continues to be a priority, CCPA compliance is critical in how businesses operate, especially in California. Understanding the rights provided to consumers and aligning business processes with CCPA requirements ensures legal compliance and builds customer trust.