TL;DR: Who must comply with the CCPA? Any business collecting data from California residents must comply, regardless of location. How does CCPA compliance change workflows? It requires mandatory disclosures, consumer data access and deletion, and regular data procedure reviews.
A key U.S. policy to be aware of is the California Consumer Privacy Act (CCPA), the first of its kind in the United States. It took effect on January 1st, 2020, and was later amended with additional data protections by the California Privacy Rights Act (the majority of which took effect on January 1st, 2023).
The CCPA is only increasing in relevance as other States use it as a template in the creation of their own privacy protection acts, namely Virginia’s CDPA, Colorado’s CPA, and Utah’s UCPA. In this article, we’ll explain who is covered by the Act, why you should care about it regardless of your business's location, and how the CCPA might affect your development workflow.
Before you continue: This isn't legal advice, and you should consult with legal counsel to ensure you’re implementing CCPA properly for your circumstances.
The CCPA's standards are directed primarily at data-driven platforms. The Act defines minimum thresholds and target audiences with easy-to-understand metrics that are widely available in summary online.
The CCPA departs from other, similar policies in defining its target protected audience. Previous policies outline the differences between consumers and customers, which determine a company’s responsibilities for data collection, storage, and sale. The CCPA covers California residents, a far broader category.
If your platform, service, or business collects data from California residents for sale, diagnostic use, or other reasons, you likely fall under CCPA coverage, even if your business is not registered in the state of California. A development team must be aware of the data they gather, where and how it is stored, and, more importantly, be able to convey this to other teams within their organization, particularly the legal team.
If your business must comply with the CCPA, your development team will have specific obligations for data collection, storage, and processing. These include integrating mandatory notice disclosures into your platform to inform consumers about what data is collected, processed, and shared.
There are plenty of reasons to become familiar with the CCPA, or even become CCPA compliant, even if your business does not target California residents.
Many of the CCPA standards assist in establishing a cohesive, accountable development team that is prepared against data breaches and understands the proper procedures in the event of a breach. Record-keeping policies help keep track of what data is being stored and where, and bakes in more intentionality to the development process.
Additionally, the CCPA has only increased in popularity and relevance, becoming a template for other states to pass their own consumer privacy laws. Even if your team doesn’t operate in California or target California residents, these trends indicate it may soon fall under similar regulations. Becoming familiar with these standards ensures a smooth transition into new obligations and allows for expansion into markets that already require these more stringent protections. In short, taking steps towards compliance builds the resilience and flexibility needed for success in a complex legal landscape now and in the future.
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