California Cracks Down on Consumer Privacy Regulations with CCPA

The California Consumer Privacy Act of 2018 (CCPA) that passed in June 2018 will take effect January 1, 2020, and is set to have a significant impact on companies that do business in the golden state.

“The CCPA is precedent-setting in the U.S. because it has far-reaching implications for data management and recordkeeping,” says Kathy Krafka Harkema, the American Architectural Manufacturers Association (AAMA) codes and regulatory affairs manager.

Who Does the CCPA Effect?

The act regulates and clarifies the acceptable interaction and use of a consumer’s personal information and impacts companies even beyond the U.S. as it requires any company that has at least $25 million in annual revenue and interacts with California residents, even international companies, to comply, the bill states.

“Your business doesn’t have to be physically located in California or even the United States to fall under the new law’s requirements,” Krafka Harkema adds. “So take time to understand it and what it takes to comply.”

What is the Big Deal With the CCPA?

The CCPA requires a company to release the extent of the information it has collected on a California consumer over the past 12 months upon their request. In addition, the company must also provide a full list of any third parties with which the data has been shared. Once a consumer has submitted a request, the company has 45 days to release the report or they will be in violation of the act and are susceptible to fines and even a lawsuit from the consumer, as outlined in the document.

Krafka Harkema points out that this act is exceptional in the amount of compliance it requires.

“While most existing consumer protection laws deal with what happens in the event of a data breach, the comprehensive new California law also allows consumers to sue companies if the privacy guidelines are violated, even if data is not breached,” she says.

The company has 30 days from the time they are notified of a violation to correct the problem or fines can be up to $7,500 per consumer-record. The bill also allows individuals to sue.

Due to the bill being drafted and passed in just a week, several