In California, business practices in the collection of personal information are governed primarily by the California Consumer Privacy Act (CCPA) and its successor, the California Privacy Rights Act (CPRA), which provide extensive rights to consumers regarding their personal data. Here are the key aspects of these laws and best practices for businesses collecting personal information in California:
Key Provisions of CCPA and CPRA
Definition of Personal Information
Personal information includes any information that identifies, relates to, describes, or is capable of being associated with, a particular individual. This includes names, addresses, email addresses, social security numbers, driver’s license numbers, purchasing history, browsing history, geolocation data, biometric data, and more.
Consumer Rights
Right to Know: Consumers have the right to know what personal information is being collected, how it is being used, and with whom it is being shared.
Right to Delete: Consumers can request the deletion of their personal information, with some exceptions.
Right to Opt-Out: Consumers can opt-out of the sale of their personal information.
Right to Non-Discrimination: Consumers should not be discriminated against for exercising their privacy rights.
Right to Correct: Under CPRA, consumers have the right to correct inaccurate personal information.
Right to Limit Use of Sensitive Personal Information: CPRA introduces the right to limit the use and disclosure of sensitive personal information.
Business Obligations
Disclosure and Transparency: Businesses must provide clear and conspicuous privacy notices at or before the point of collection of personal information. They must disclose the categories of personal information collected, the purposes for which it is used, and the categories of third parties with whom the information is shared.
Data Security: Businesses must implement and maintain reasonable security procedures and practices to protect personal information from unauthorized access, destruction, use, modification, or disclosure.
Response to Consumer Requests: Businesses must respond to consumer requests regarding their personal information within specified time frames (typically 45 days).
Data Minimization: Businesses should collect only the personal information necessary for the purposes disclosed to the consumer and should not retain personal information longer than necessary.
Best Practices for Businesses
Develop and Communicate a Clear Privacy Policy
Ensure your privacy policy is easily accessible and clearly outlines what personal information is collected, how it is used, and the rights of consumers.
Implement Data Security Measures
Use encryption, access controls, and other security measures to protect personal information.
- Regularly audit and update security practices to address new threats.
- Limit Data Collection
Only collect personal information that is necessary for your business purposes.
- Avoid collecting sensitive personal information unless absolutely required.
- Train Employees
Educate employees about privacy laws and best practices for handling personal information.
- Ensure employees understand how to respond to consumer requests regarding their data.
- Establish Procedures for Consumer Requests
- Create efficient processes for handling consumer requests to know, delete, correct, and opt-out of the sale of their personal information.
- Ensure you have mechanisms in place to verify the identity of individuals making requests.
- Monitor Third-Party Vendors
- Conduct due diligence and ensure that third-party vendors with whom you share personal information comply with CCPA and CPRA requirements.
- Include privacy and security obligations in contracts with third-party vendors.
- Keep Records: Maintain records of consumer requests and how they were handled.
- Document your data collection, usage, and sharing practices to demonstrate compliance with CCPA and CPRA.
- Stay Informed and Update Practices
Regularly review and update your privacy practices to comply with changes in the law and emerging best practices.
- Stay informed about new regulations and guidance from the California Privacy Protection Agency (CPPA).
- By adhering to these practices, businesses can ensure compliance with California privacy laws and build trust with consumers regarding the handling of their personal information.