The CCPA has set a strong standard for data privacy in the state. The act is a shield that safeguards the personal information of state residents, which many businesses collect and use. It doesn’t matter whether you are part of a small start-up or a large corporation; your business should be aware of the CCPA and how to stay compliant with California data privacy laws.
What Is the CCPA?
The California Consumer Privacy Act (CCPA) is a data privacy law that applies to businesses that handle the personal data of California residents. Internet laws, such as the CCPA, were enacted to require companies to inform consumers about how their data is being used and promote transparency. The act grants consumers certain privacy rights, such as the right to know, correct, and delete their personal data from a company’s database.
The CCPA applies to all for-profit businesses that operate in California, collect consumers’ personal data, and fall into one or more of these categories:
- Their annual gross revenue exceeds $25 million.
- They buy, sell, or share the personal information of over 100,000 residents.
- 50% or more of their annual revenue comes from selling personal information.
This personal information includes any data that can directly or indirectly identify a person, such as:
- Names
- Email addresses
- Geolocation data
- Driver’s license numbers
- Online identifiers, like cookies and IP addresses
Non-compliance can be costly to companies, with up to a $7,988 fine per violation.
Requirements Under the CCPA
Businesses that must comply with the CCPA are required to:
- Clearly and prominently display an easy-to-understand privacy policy.
- Collect and use only the data that is essential.
- Clearly display “do not sell or share my information” and “limit the use of my sensitive personal information” links.
- Get opt-in consent from the parent or guardian to sell the personal information of children under 16.
- Safeguard personal information by having appropriate security in place.
- Make sure consumers can easily act on their rights.
- Make sure consumer complaints are promptly met.
How to Stay Compliant With the CCPA
It does not need to be stressful and overwhelming to comply with the CCPA. In addition to retaining an internet lawyer to support you, your business can take a systemic approach to data handling by following these steps:
Step 1: Update Your Privacy Policy
First, update your privacy policy. Make sure it clearly explains the new CCPA rights consumers have and how your businesses will handle their requests regarding those rights. Also, double-check that you’re providing privacy notices whenever you collect their data. This lets people know how you will use their information.
Step 2: Build a Solid Data Inventory
Create a master list of all your consumer data. You will want a comprehensive database that tracks every time you process consumer data. This includes classifying data types (like what has been sold, shared, or will be used for marketing) and logging all rights requests. These records are key to proving your compliance with the CCPA.
Step 3: Establish Data Rights Procedures
You need clear, straightforward processes for handling consumer requests to exercise their CCPA rights. Make it easy for them and for your team to respond.
Step 4: Boost Your Cybersecurity
Strengthen your security measures when storing personal data. Take a risk-based approach by focusing on protecting the data that is most vulnerable. Doing this can prevent costly data breaches and penalties.
Step 5: Review Your Third-Party Agreements
Take a close look at the contracts you have with any third parties who process consumer data. Make sure these agreements cover all the necessary CCPA compliance points, including how the data is processed and how you’ll work together on consumer requests.
Step 6: Keep Your Team Trained in Data Privacy
It is essential to have ongoing training for everyone on your team who handles consumer data, especially those who process rights requests. While you have some flexibility on how to approach this, annual refreshers are always a great idea to make sure everyone keeps current about safe and secure data practices.
Why You Need an Internet Lawyer
Compliance is not just simply reacting; it requires your business to make a strategic and ongoing commitment to data governance, legal interpretation, and risk management. An experienced internet lawyer from The Myers Law Group can:
- Conduct a privacy compliance audit.
- Draft or update privacy policies and notices.
- Structure compliant data-sharing agreements.
- Respond to regulatory inquiries or consumer complaints.
- Stay ahead of new regulations and enforcement trends.
California’s data privacy laws are some of the most comprehensive in the nation. As enforcement continues to ramp up in 2025, businesses need to make sure they are taking proactive steps to stay compliant. The state takes consumer rights and implementing safeguards very seriously. When you have a California internet attorney on your side, especially one who is experienced in internet law cases, you can rest assured that your business is protected.
FAQs
Q: Which Businesses Does the CCPA Apply To?
A: The CCPA applies to for-profit businesses that collect personal data from Californians and meet specific criteria. These businesses must:
- Have a gross annual revenue exceeding $25 million annually.
- Buy, sell, or share the personal information of 100,000 or more California consumers.
- Get 50% of their annual revenue from selling or sharing personal information.
Q: What Is the Difference Between the CCPA and the CPRA?
A: The California Privacy Rights Act (CPRA) is not a separate law but an amendment to the CCPA. The CCPA established consumer rights such as knowing what data is being collected and opting out of those sales, but the CPRA introduced new rights, like limiting sensitive data use as well as creating the California Privacy Protection Agency (CPPA) for enforcement.
Q: What Are the Penalties for Non-Compliance?
A: The penalties for non-compliance depend on whether it was intentional or not. The California Attorney General or CPPA can levy civil penalties of up to $7,988 per violation. Consumers also have the private right of action for data breaches, and they can sue for up to $799 per consumer incident or for actual damages, whichever is greater.
Q: What Happens If My Organization Has a Data Breach?
A: If your business has experienced a data breach due to its failure to maintain reasonable security, consumers can sue for statutory damages. Businesses may also face civil penalties from the California Attorney General. These can add up quickly, as they are imposed per customer impacted. Businesses are required to notify affected individuals and the Attorney General if they experience a data breach.
Hire a California Internet Lawyer
When you choose to hire a California internet lawyer, you are not only taking precautionary measures but also making strategic decisions to protect your business. At The Myers Law Group, our team can help your business navigate the complexities of information privacy, ensure regulatory compliance, and manage the risks related to electronic collection, storage, and use of data. Contact us to learn more.