SMALL BUSINESS NEWS

Nov 2018

 

Email this page    

 

CA New Privacy Laws

The State of California has enacted new privacy laws. The California Consumer Privacy Act of 2018 will go into effect beginning January 1, 2020.

 

The new law will require businesses that collect personal information on residents in California to meet new stringent requirements.  These requirements include:

 

-companies make certain disclosures to consumers via their privacy policies, or otherwise at the time the personal data is collected. For example, let consumers know their rights under the Act;  inform consumers of the categories of personal information they collect, the purposes for which that personal information is collected, and the categories of personal information that it sold or disclosed in the preceding 12 months.

 

-Inform consumers if you sell their personal information and give them the opportunity to opt out.

 

-Do not sell the personal information of consumers younger than 16 years of age without their consent.  For consumers younger than 13 years of age you must get their parent or guardian permission.

 

-Provide at least two means for consumers to submit requests for disclosure and provide the requested information free of charge and within 45 days. 

 

-Businesses can offer financial incentives to consumers for the collection, sale, or deletion of their personal information, under certain conditions and with appropriate notification.

 

This Act will affect businesses that meets any of these criteria:

 

-For-Profit businesses that collect and control California residents’ personal information.

 

-Do business in the State of California, and:

-(a) have annual gross revenues in excess of $25 million; or

-(b) receive or disclose the personal information of 50,000 or more California residents, households or devices on an annual basis; or

-(c) derive 50 percent or more of their annual revenues from selling California residents’ personal information.

 

 The Act also affects corporate affiliates of businesses that share their branding. 

 

The Act defines personal information as information that identifies, relates to, describes, is capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household.  This includes:

 

-Record of personal property

-Purchasing information

-Internet activity

-Education information

 

Penalties for violating the act includes the following:

 

-Civil penalty for intentional violations of the Act is up to $7,500 per violation.

 

-Individual or class lawsuits for statutory or actual damages ranging from $100 and $750 per California resident per incident, or actual damages, whichever is greater.

 

The bottom line is that businesses will incur significant compliance costs in order to update procedures, policies, web sites and hiring of staff to meet the requirements of  the new law.

Sources:
California Consumer Privacy Act of 2018 [Assembly Bill No. 375]

By Wency Stewart