California Consumer Privacy Act (CCPA)

Definition

The California Consumer Privacy Act (CCPA) is a landmark data privacy law enacted in 2018 that grants California residents increased control over their personal information held by businesses. The CCPA requires companies to disclose what personal data they collect, allow consumers to access that data, and provide options to delete or opt-out of the sale of their information. This act represents a significant step in privacy and data protection, shaping how businesses handle consumer information.

5 Must Know Facts For Your Next Test

1. The CCPA applies to businesses that meet certain revenue or data collection thresholds, specifically those earning over $25 million in annual revenue or handling the personal information of over 50,000 consumers.
2. Consumers have the right to know what personal information is collected about them and can request that businesses disclose specific pieces of data.
3. The law includes provisions that prohibit businesses from discriminating against consumers who exercise their rights under the CCPA.
4. Under the CCPA, consumers can request the deletion of their personal information from a business's records, with some exceptions for data needed for legal compliance or business purposes.
5. The CCPA serves as a model for other states considering similar privacy legislation and has sparked a broader discussion about consumer privacy rights across the United States.

Review Questions

• What are the key rights granted to consumers under the California Consumer Privacy Act?
  • Under the California Consumer Privacy Act, consumers are granted several key rights concerning their personal information. These include the right to know what personal data is being collected about them, the right to access that data upon request, and the right to request deletion of their information from a business's records. Additionally, consumers have the right to opt-out of the sale of their personal data and cannot face discrimination for exercising these rights.
• How does the CCPA influence business practices regarding consumer data management?
  • The CCPA significantly influences business practices by requiring organizations to be transparent about their data collection methods and uses. Companies must develop clear policies that inform consumers about what data is collected and how it is used. This law forces businesses to implement systems that allow consumers to easily access their personal data and manage their privacy preferences. As a result, organizations are investing more in compliance measures and training employees on privacy issues.
• Evaluate the impact of the CCPA on consumer trust and corporate accountability in today's digital landscape.
  • The CCPA has a profound impact on consumer trust and corporate accountability by empowering individuals with more control over their personal information. As consumers become more aware of their rights and how companies manage their data, businesses face increased pressure to act transparently and ethically. This law fosters an environment where companies are held accountable for their data practices, leading to enhanced consumer confidence in sharing personal information. Over time, as more states adopt similar laws, we may see a fundamental shift in how businesses approach privacy and consumer relations.

Related terms

Personal Information: Any information that identifies, relates to, describes, or can be associated with a particular individual, including names, addresses, and online identifiers.

Data Subject Rights: Legal rights granted to individuals regarding their personal data, including the right to access, correct, delete, and restrict processing of their information.

GDPR:

The General Data Protection Regulation is a comprehensive data protection law in the European Union that influences privacy regulations globally, including the CCPA.