Data privacy is very important for California businesses. The California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA) set the rules for how businesses collect, use, and share people’s personal information. If companies don’t follow these laws, they could face legal trouble and lose customer trust. This guide breaks down the main differences between the CCPA and CPRA and shares simple steps to help businesses stay compliant.

What is CCPA?

California Consumer Privacy Act (CCPA) became effective on January 1st, 2020. It is the first big consumer privacy law in California that allows its residents to have more control over personal information. CCPA grants consumers the following rights:

• Right to Know: Companies must disclose what personal information they collect and how it is used.
• Right to Delete: Consumers can request that their personal information be deleted, with some exceptions.
• Right to Opt-Out: Consumers can refuse the sale of their personal information.
• Right to Non-Discrimination: Businesses cannot treat consumers unfairly for exercising their privacy rights.

Who Must Comply with CCPA?

The following businesses are covered under the CCPA:

• Companies with annual revenue over $25 million
• Organizations that collect, sell, or share the personal information of more than 50,000 people, households, or devices in a year
• Businesses that earn more than half of their yearly revenue from selling consumer personal data

Companies that don’t meet these criteria are not legally required to comply. However, adopting privacy best practices can still build trust and help avoid potential legal issues.

What is CPRA?

The California Privacy Rights Act (CPRA) took effect in January 2023, significantly expanding the CCPA. CPRA is adding new consumer rights and strengthening enforcement actions.

The main updates in CPRA are:

• Sensitive personal information: CPRA introduces new types like race, health data, sexual orientation, and precise location data.
• Right to correct: Consumers have the right to ask for the correction of wrong personal information.
• Expanded opt-out rights: The CPRA restricts the sale of personal information and its sharing. 
• Data retention limits: Companies can retain data necessary to support business processes and keep it within the required period of time.
• New enforcement agency: Establishes the California Privacy Protection Agency (CPPA) with stronger enforcement authority

Why CPRA is Important for Businesses

The CPRA increases business accountability and transparency around consumer data. Compliance helps companies avoid fines, strengthen customer trust, and prepare for future privacy regulations.

Key Differences Between CCPA and CPRA

Understanding the differences between these laws is essential for agreement:

This table highlights the expanded obligations facing companies under the CPRA. Companies must manage and protect their consumers’ sensitive data.

Why Compliance Matters

Violation of CCPA or CPRA may be simple:

• Financial penalties: The CPRA fines up to $ 7,500 for a violation.
• Reputational damage: Data leakage and privacy failures destroy the consumer trust.
• Legal risks: Non-compliant companies may face legal suits and regulations
• Customer loyalty: Respecting consumers' privacy fosters trust, which in turn can increase their loyalty.

Compliance is more than a legal requirement. It’s an investment in customer confidence and sustainable business growth.

Step-by-Step Guide to CCPA and CPRA Compliance

Businesses should take a structured approach to comply with privacy laws.

1. Conduct a Comprehensive Data Audit

Start by identifying all personal information collected, stored, and shared. Map data flows and classify information by sensitivity. This procedure enables you to know exactly what data you own and how to use it.

2. Update Privacy Policies

Clearly explain:

• What data is collected
• Why it is collected
• Consumer rights under CCPA and CPRA
• How consumers can request access, deletion, or corrections

3. Implement a Consumer Rights Request Process

Build a system that handles requests efficiently:

• Set up a request management team.
• Verify the client's identity.
• Track requests and response schedules.

You can reduce errors and ensure compliance with required schedules by automating this process.

4. Limit Data Retention

CPRA requires companies to store personal data only for the period necessary for business purposes. Define the storage period and securely delete unnecessary data.

5. Train Employees on Privacy Policies

Company employees that handle data must be familiar with privacy regulations. Provide the following training:

• Identifying personal and sensitive data
• Responding to consumer requests
• Recognizing potential breaches

Well-trained staff reduce compliance risks.

6. Review Vendor Contracts

If vendors handle consumer data, ensure contracts include privacy requirements that align with CCPA and CPRA.

7. Monitor Compliance Continuously

Compliance is an ongoing process. Conduct regular audits, risk assessments, and update practices as regulations evolve.

Tools and Solutions for Compliance

Businesses can leverage IT solutions to simplify compliance, including:

• Data management systems for secure storage and processing
• Platforms to track and respond to consumer rights requests
• Employee training programs on privacy rules
• Vendor management tools to monitor third-party compliance

Consilien provides these solutions to help companies manage CCPA and CPRA compliance efficiently.

How Consilien IT Company Supports Compliance

Consilien specializes in helping California companies meet privacy requirements, including CCPA and CPRA. We provide comprehensive solutions to safely collect, store, and manage personal and sensitive data. By partnering with Consilien, companies can reduce the risk of fines, protect customer trust, and simplify the continuous management of privacy obligations.

Our services include:

• Data Security Solutions: Protect sensitive information from unauthorized access and disclosure.
• Consumer Rights Request Management: Streamlines claims for access, deletion, and correction of personal data.
• Privacy Policy Support: Develop policies that comply with the CCPA and CPRA.
• Employee Training: All employees should be aware of their responsibility to ensure compliance.
• Vendor Management Assistance: Evaluate and update vendor contracts for compliance.

With Consilien IT Company, companies are able to minimize risks, keep up with agreements, and retain customer confidence.

Frequently Asked Questions (FAQs)

1. Who must comply with CCPA and CPRA?

Any company that meets the revenue threshold, collects data from more than 50,000 consumers, or earns more than half of its revenue from selling personal data.

2. What is considered sensitive personal information under CPRA?

Examples include Social Security numbers, health data, precise location, race, sexual orientation, and financial account details.

3. What are the penalties for non-compliance?

Violations may result in fines of up to $7,500 per incident and enforcement actions from the California Privacy Protection Agency.

4. Can businesses use software to simplify compliance?

Yes, companies can deploy IT solutions to manage requests, track data, and secure vendor compliance. The Consilien provides these tools and support.

Key Takeaways

California’s CCPA and CPRA emphasize careful data management, transparent policies, and prompt responses to consumer requests. The CPRA raises the bar with stronger requirements around sensitive data, retention limits, and enforcement.

Consilien helps companies meet these obligations with IT solutions, training, and privacy support. Partner with Concillien IT Company to reduce risk, protect customer trust, and simplify compliance management.