CCPA And CPRA Consent Requirements: A Comprehensive Guide To Staying Compliant

The California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA) are significant privacy laws that impose new data protection and privacy rights for California consumers. Businesses that collect, use, or disclose the personal information of California residents must comply with these laws. In this blog, we will discuss the CCPA and CPRA consent requirements and provide insights into what businesses need to know to ensure compliance with these laws. We will cover the key provisions of the laws, including the types of consent required, the process for obtaining consent, and the implications of non-compliance. By understanding the CCPA and CPRA consent requirements, businesses can take the necessary steps to safeguard the personal information of California consumers and avoid potential legal and reputational risks.

What are the California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA)?

The California Consumer Privacy Act (CCPA) is a privacy law in California, USA that went into effect on January 1, 2020. The CCPA gives California residents certain rights over their personal information, such as the right to know what personal information a business collects about them, the right to request deletion of their personal information, and the right to opt-out of the sale of their personal information. The CCPA applies to for-profit businesses that collect personal information of California residents, have annual gross revenues over $25 million, or buy, receive, or sell the personal information of 50,000 or more consumers, households, or devices.

The California Privacy Rights Act (CPRA) is a ballot initiative passed by California voters on November 3, 2020, that builds upon and expands the CCPA's privacy protections. The CPRA provides California residents with additional rights over their personal information, including the right to restrict the processing of sensitive personal information, the right to correct inaccuracies in their personal information, and the right to limit the use of certain technologies that profile individuals. The CPRA also establishes a new state agency, the California Privacy Protection Agency, to enforce privacy laws in California. The CPRA has gone into effect on January 1, 2023.

What Are the Consent Requirements for CCPA and CPRA?

The CCPA and the CPRA are privacy laws in California that regulate the collection, use, and sharing of personal information of California residents. These laws require businesses that collect, use, or disclose the personal information of California residents to take appropriate measures to protect the data. Identifiers such as a credit card number, social security number, or passport number, which can be used to identify a natural person, are considered sensitive personal information and require additional protection.

CCPA consent requirements:

• Businesses must provide clear and conspicuous notice at or before the point of data collection regarding the categories of personal information to be collected and the purposes for which it will be used.
• Consumers have the right to opt-out of the sale of their personal information. Businesses must provide a "Do Not Sell My Personal Information" link on their website.
• Businesses must obtain affirmative consent from consumers before collecting the personal information of minors under the age of 16.

CPRA consent requirements:

• The CPRA builds upon and expands the CCPA's requirements, adding new consumer rights and protections.
• Businesses must provide more detailed information to consumers about the categories of personal information collected, the purposes for which it will be used, and the rights of consumers to control their personal information.
• The CPRA also introduces a new category of "sensitive personal information," which requires additional protections and restrictions on its collection, use, and sharing.

In summary, the CCPA sets the foundation for consumer privacy rights in California, while the CPRA strengthens and expands these rights.

Do CCPA and CPRA Compare to GDPR Personal Data Processing Requirements?

The California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA) have similarities with the European Union's General Data Protection Regulation (GDPR) in terms of personal data processing requirements. Both laws place significant emphasis on giving consumers control over their personal information and require businesses to provide certain rights to consumers, such as the right to access, delete, and opt-out of the sale of their personal information.

However, there are also some differences between the CCPA/CPRA and the GDPR. For example, the CCPA/CPRA applies only to California residents, while the GDPR applies to all individuals in the EU. The CCPA/CPRA also have different definitions of personal information and differ in their enforcement mechanisms.

Overall, businesses operating in California or handling the personal information of California residents should familiarize themselves with both the CCPA/CPRA and the GDPR to ensure they are meeting the requirements of all relevant privacy laws. For more information on consent management best practices, check ou tour blog here.

CPRA and CCPA Compliant Data Collection

The CCPA and CPRA give consumers the right to know what personal information a business collects about them, the right to request that the business delete their personal information, and the right to opt-out of the sale of their personal information. Businesses that are subject to the CCPA and CPRA must provide consumers with certain disclosures and notices on their homepage and in response to consumer requests.

Under the CCPA and CPRA, businesses must obtain opt-in consent from minors who are at least 13 but less than 16 years of age and opt-in consent from minors who are at least 16 but less than 18 years of age before selling their personal information. Businesses must also provide a "Do Not Sell My Personal Information" link on their homepage, as well as a toll-free telephone number and an email address for consumers to submit requests. The CCPA and CPRA also require businesses to provide consumers with specific disclosures about the categories of personal information that the business collects, the categories of third parties with whom the business shares the information, and the business purpose for collecting, using and disclosing the information.

Businesses must also be mindful of the financial incentives they offer to consumers for the collection of their personal information. The CCPA and CPRA prohibit the use of financial incentives that are unjust, unreasonable, coercive or affect the consumer's ability to exercise their rights under the law. Additionally, businesses must not discriminate against consumers who exercise their rights under the CCPA or CPRA. The CCPA and CPRA also require businesses to provide a disclaimer on their website regarding the use of personal information for creating inferences, such as for marketing or advertising purposes.

In the event of a data breach, businesses must promptly notify the affected consumers and the attorney general, providing them with information about the nature of the breach and the types of personal information that were compromised. The CCPA and CPRA also require businesses to provide consumers with the right to access and portability of their personal information and to make it easy for consumers to exercise these rights by providing functionality on their website or through a service provider.

To ensure CCPA and CPRA compliance, businesses must have a functional consent management platform in place, including a cookie banner or other type of pop-up on their web page to obtain cookie consent. They should also obtain opt-in consent for the collection of sensitive information such as geolocation data and biometric information. It is recommended that businesses obtain legal advice to assess their data collection practices and implement necessary changes to ensure compliance with the CCPA and CPRA. This may include regular audits and assessments of their privacy policies, systems, and processes to ensure they are protecting the privacy rights of California residents.

Final Thoughts

In conclusion, businesses operating in California must take the necessary steps to ensure CCPA compliance and protect the privacy rights of California consumers. This includes providing clear and transparent information about the collection and sale of personal information, implementing robust data privacy measures, and responding to consumer requests in a timely manner. It is also recommended that businesses seek legal advice to understand the full scope of their CCPA obligations and ensure that they are in compliance with all CCPA requirements.