Understanding California's Data Privacy Laws What Your Business Needs to Know
Aug 23 2023 0

Understanding California’s Data Privacy Laws: What Your Business Needs to Know

California residents enjoy specific privacy rights that businesses must abide by. As a business, it is essential to understand what your obligations are to California residents with respect to the collection and use of their private information as well as how that information is disclosed. The California Consumer Privacy Act (CCPA) outlines specific guidelines for personal data protection. For instance, there is the need to offer consumers opt-out options concerning data sales as well as making it necessary to have a public registry of the data brokers that conduct business throughout the state.

There is also the California Privacy Rights Act (CPRA) which expands on the provisions in the CCPA. Some of these additional protections include safeguarding sensitive personal information like social security numbers, or financial account numbers. It also offers the ability for consumers to correct personal information that is inaccurate or that is insufficient. These are just some of the improvements found in the CPRA.

For more information about how your California business’s operations could be affected by the CCPA or the CPRA, the Los Angeles business attorney at the Leiva Law Firm can answer your questions and discuss what applies to your specific situation.

California Businesses Abiding by CCPA and CPRA Guidelines

Understanding California's Data Privacy Laws What Your Business Needs to KnowAll for-profit companies operating in California that collect consumer data to use in conducting business will have to abide by the CCPA, provided they:

  • Gross at least $25 million in profits each year
  • Engage in data collection or personal data distribution for at least 50,000 people
  • Earns half of their income or more from the sales of personal data annually

The CPRA will also mostly follow the above conditions, with the exception of data collection. The CPRA applies to businesses that collect data on at least 100,000 people.

Both consumer privacy laws are active in California. The CCPA took effect on January 1, 2020, while the CPRA went live on January 1, 2023.

It can be costly for companies that fail to comply with California’s privacy laws. To preserve a company’s bottom line, it is wise for business owners to understand their obligations to their consumers regarding the management and use of their personal data. And even when an error that was not deliberate happens, there will still be financial penalties.

For example, an unintentional violation of the CCPA or CPRA will result in a fine as high as $2,500. On the other hand, if there are violations that are deemed to be intentional, that fine can go up to a steep $7,500. Additionally, any violation with young consumers under the age of 16 also can come with a fine as costly as $7,500.

Speak to an Attorney at the Leiva Law Firm Today

It is imperative that your company abide by the privacy laws of the state of California to avoid costly fines and also, to garner the trust of your consumers. If you are unsure about what you must do to comply with the laws or if you are facing a lawsuit for potential violations of those laws, then you can benefit from speaking with an attorney. Marlene Leiva of the Leiva Law Firm can explain to you what needs to be done to adhere to the laws or, to provide you aggressive and effective legal representation. Call the Leiva Law Firm today to schedule a free consultation at (818) 519-4465, where you can learn more about how working with an LA business attorney can be beneficial for your situation.


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