CCPA Will Significantly Impact the Data-Driven Marketing & Advertising Industry. This new law has far-reaching implications that brands need to understand and act on.
The CCPA applies to any company that does business in California for a profit, that collects personal information from a California resident; and that either: (i) has annual gross revenue over $25 million; (ii) annually buys, sells, receives, or shares for a commercial purpose the personal information of 50,000 or more consumers, households, or devices; or (iii) derives 50% or more of its annual revenues from selling consumer’s personal information. The law is not limited to information collected electronically or over the Internet, but applies to the collection and sale of all personal information.
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The CCPA creates expansive, new, notice, access, and choice rights for California consumers. As an example, when responding to consumer requests, covered businesses may not rely exclusively on general statements of applicability like those made in some current privacy notices.
The CCPA provides consumers with the right to request the categories of personal information and the specific pieces of personal information, that the business has collected about the specific consumer, and a business must notify consumers of this right. Companies must promptly respond to verifiable requests for access to data collected, sold or disclosed within 45 days and provide the requested information free of charge by mail or electronically, and if provided electronically, in a portable form, if technically feasible.
The CCPA creates a right for consumers to request that a business delete any personal information about the consumer that the business collected from the consumer, and businesses must provide notice of this right in their online privacy notice. The law also requires a business that receives a verifiable consumer request to direct its service providers to delete the personal information from their records.
Upon receipt of a verifiable consumer request, a covered business must disclose the following: (1) the categories of personal information collected about the consumer; (2) the categories of sources from which personal information is collected; (3) the business or commercial purposes for collecting or selling the personal information; and (4) the categories of third parties with which the personal information is shared; and (5) the specific pieces of personal information collected about that consumer.
As a general rule, the CCPA provides consumers with the right, at any time, to opt-out of a business’s sale of a consumer’s personal information to third parties. Businesses that sell personal information to third parties are required to provide notice that personal information may be sold and that consumers have the right to opt-out.
The CCPA generally prohibits businesses from selling data of consumers that they have actual knowledge are under 16, unless they have received opt-in consent (i.e., affirmative authorization) for such sale from: (1) for consumers under 13, the consumer’s parent or guardian; or (2) for consumers aged 13-16, the consent of the consumer.
The CCPA prohibits covered businesses from discriminating against consumers for exercising any of their rights created by the law. This includes: (1) denying goods or services; (2) charging different prices, including via benefits or penalties; (3) providing a different level of quality; or (4) suggesting that the consumer will receive a different price or quality.
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