With each passing day, the California Consumer Privacy Act continues to shape up. California has more than 3,000 local businesses and this new privacy law has everyone talking, especially those in the digital sector.
Companies that use and collect consumer data as part of their business model will be the ones most affected. What will this law entail and how does it affect California businesses on their day-to-day? Let’s dive in and see.
What’s the A.B. 375 Bill All About?
The California Consumer Privacy Act is also known in court as A.B. 375. It’s a bill that passed in June 2018, making it mandatory for businesses to change their methods of collecting and using data from California consumers.
The bill came after privacy scandals surfaced over recent years. The law is for businesses with gross revenue of $25 million or more. A.B. 375 goes into effect on January 1, 2020, providing consumers with the power to control how their data is being used.
Types of Personal Information Collected
Businesses are collecting all different types of personal information. How the data is used will be in the hands of California consumers. Personal information is broad and includes the following types:
- Personal Identifiers (PIN, DOB, Accounts Numbers, Etc.)
- Biometric Data
- Consumer Sale Data
- Internet Browsing History
- Family Information and History
How Does the California Consumer Privacy Act Affect My Business?
Before the bill becomes California law, businesses will have to identify ways to restructure their business strategy. That’s if they rely on collecting and selling consumer information as part of their revenue stream.
The law mandates that companies allow consumers to have the ability to request that their data be deleted from company databases, opt-out of the sale of their digital information, and be able to transfer data to a third-party in a format that’s easy to comprehend.
Technology firms, such as Facebook and Google, who collect consumer information are the intended targets of the new California privacy law. Businesses that reap the benefits of online advertising may have to act fast to reform their business plan to comply by 2020.
Consider This When the Bill Goes into Effect
There are two ideas to consider when implementing the California Consumer Privacy Act into your established business model. The first is to reformulate your consumer data infrastructure to appease the California legislation and consumers. You’ll have to place a clear call-to-action button on your website landing pages titled “Do Not Sell My Personal Information.”
Another way to comply with the privacy protection act is to institute a data regime that’s unique to the California online market. Meaning, your California consumers are using a data infrastructure that’s different compared to the rest of your audience.
While the law is being lobbied by both sides, it’s not quite fleshed out yet and there’s still time for changes. It’s gained a lot of attention over the past year, and now nine other states are considering similar versions of their own. To get all of your California legal questions answered, please contact us today!