CCPA vs. CPRA: Navigating California’s Privacy Law Landscape

In recent years, the realm of privacy law has undergone significant transformation, with California leading the charge in the United States. Two key pieces of legislation, the California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA), have been at the forefront of this movement. 

These laws aim to protect consumers’ privacy rights and regulate how businesses handle personal information. But what are the differences between CCPA and CPRA? And how do these laws shape the privacy landscape in California? 

In this comprehensive guide, we’ll dive deep into the CCPA vs. CPRA, exploring their nuances, and understanding the implications for both businesses and consumers.

Understanding CCPA: A milestone in data privacy law

The California Consumer Privacy Act (CCPA), which went into effect on January 1, 2020, was the first comprehensive consumer privacy law in the United States. It marked a significant step towards enhancing data privacy and gave California residents the right to know what personal information is being collected about them, the right to request deletion of their data, and the right to opt out of the sale of their personal information.

Under the CCPA, businesses that operate in California and meet certain thresholds—such as having gross revenues exceeding $25 million, handling personal data of 50,000 or more consumers, or earning 50% or more of their revenue from selling personal data—must comply with the law. The CCPA applies to businesses not only based in California but also those that target California residents.

The CCPA regulations set the groundwork for data privacy in the state, making it mandatory for businesses to inform consumers about their privacy practices and provide a clear path for them to exercise their rights. However, as robust as it was, the CCPA faced criticism for its limitations, which eventually led to the introduction of the California Privacy Rights Act (CPRA).

What is CPRA? An evolution in California privacy law

The California Privacy Rights Act (CPRA), which was passed by California voters in November 2020 and fully took effect on January 1, 2023, is essentially an amendment and expansion of the CCPA. The CPRA builds on the foundation laid by the CCPA but introduces new definitions, rights, and obligations aimed at further enhancing consumer data privacy.

One of the most significant changes under the CPRA is the establishment of the California Privacy Protection Agency (CPPA), a dedicated agency responsible for enforcing privacy laws in California. This agency, created by the CPRA, takes over the enforcement role of the California Attorney General, ensuring that businesses comply with the law and consumers’ privacy rights are protected.

Does CPRA replace the CCPA?

A common question is whether the CPRA replaces the CCPA. The answer is both yes and no. Technically, the CPRA amends the CCPA, meaning that while the CPRA introduces significant changes, the CCPA remains the foundation of California’s data privacy law. The CPRA amendments to the CCPA enhance and expand the original law, providing stronger protections for consumers and placing more stringent requirements on businesses.

Businesses that were previously subject to the CCPA must now comply with the CPRA, as the new law has taken over as the governing privacy legislation in California. However, the CCPA’s core principles—such as the right to know, delete, and opt out—remain intact, albeit with enhancements under the CPRA.

CCPA vs. CPRA: What’s the difference?

When comparing CCPA vs. CPRA, it’s essential to understand that the CPRA amends and expands the CCPA rather than completely replacing it. The differences between the CCPA and CPRA are numerous, with the CPRA introducing several new provisions that enhance consumer protections and impose stricter requirements on businesses.

New definitions included in CPRA

One of the key differences between CCPA and CPRA is the introduction of new definitions. The CPRA introduces the concept of sensitive personal information, which includes data such as Social Security numbers, precise geolocation, racial or ethnic origin, religious beliefs, and more. Businesses must provide consumers with the right to limit the use of their sensitive personal information, ensuring that it is only used for necessary purposes.

The CPRA also defines a “business purpose” more explicitly, making it clear what constitutes legitimate use of consumer data. Additionally, the CPRA broadens the definition of a “sale” to include sharing personal data for targeted advertising, a significant shift from the CCPA’s original provisions.

New rights for consumers under CPRA

The CPRA introduces new rights for consumers that further empower them to control their data. For instance, consumers now have the right to correct inaccurate personal information held by businesses, adding to the CCPA’s existing rights to know, delete, and opt out.

Moreover, the CPRA requires businesses to inform consumers if they plan to retain their data longer than reasonably necessary and provide a clear explanation for the retention period. This transparency is a crucial element in enhancing consumer privacy rights.

Other significant CPRA changes

Apart from new definitions and rights, the CPRA expands the scope of compliance and enforcement. The creation of the California Privacy Protection Agency (CPPA) is a critical development. This agency is not just an enforcement body but also plays a role in educating consumers and businesses about their privacy rights and responsibilities.

Another notable change is the extension of the right to know. Under the CCPA, consumers have the right to know what personal information has been collected about them in the past 12 months. The CPRA expands this right, allowing consumers to request information beyond the 12-month period, provided it is technologically feasible for businesses to provide it.

The CPRA also introduces stricter requirements for businesses regarding data minimization and retention. Businesses are now required to minimize the data they collect, ensuring it is only used for the purposes stated at the time of collection. Additionally, they must establish a clear data retention policy, limiting the retention of personal information to the time necessary to fulfill the stated purpose.

CPRA compliance: What businesses must do

With the CPRA in full effect, businesses operating in California or dealing with California residents need to ensure they are compliant with the new law. CPRA compliance involves several steps, including updating privacy policies, revising data processing agreements, and implementing procedures to handle new consumer rights.

Businesses must also review their data handling practices, especially concerning sensitive personal information, to ensure they are aligned with the CPRA’s requirements. This may involve updating systems to allow consumers to exercise their rights to limit the use of their sensitive personal information or to correct inaccuracies in their personal data.

Moreover, businesses must be prepared for enforcement actions by the California Privacy Protection Agency. The CPPA, empowered by the CPRA, will actively monitor compliance and impose penalties on businesses that fail to adhere to the law. Therefore, businesses need to take privacy and data protection seriously and implement robust measures to safeguard consumers’ personal information.

The future of privacy and data protection: CCPA and CPRA

The CCPA and CPRA represent a significant shift in how privacy and data protection are approached in the United States. With California leading the way, other states are likely to follow suit, introducing their own data privacy laws that could mirror or even exceed the protections offered by the CCPA and CPRA.

For businesses, this means that compliance is no longer just a matter of meeting minimum requirements. Instead, it requires a proactive approach to privacy and data protection, with a focus on transparency, consumer rights, and accountability.

In the broader context of privacy legislation, the CCPA and CPRA set a new standard for consumer data privacy in the U.S. As more states consider their own privacy laws and as federal privacy legislation becomes a topic of discussion, the impact of California’s privacy laws will be felt across the nation.

Conclusion: CPRA and CCPA

The introduction of the CPRA marks a new era in data privacy for businesses and consumers in California. While the CCPA laid the groundwork, the CPRA builds on it, introducing new definitions, rights, and obligations that significantly enhance consumer privacy protections.

For businesses, the message is clear: compliance with the CCPA and CPRA is not optional. With the creation of the California Privacy Protection Agency and the stringent requirements imposed by the CPRA, businesses must take privacy seriously or face the consequences.

As the privacy landscape continues to evolve, understanding the differences between CCPA vs. CPRA is crucial for navigating this complex environment. Whether you’re a business in California or one that deals with California residents, staying informed and proactive in your approach to data privacy will be key to ensuring you remain compliant and build trust with your consumers.

Protect sensitive personal information

Are you struggling to navigate the complexities of CCPA vs. CPRA? Understanding how CCPA and CPRA are two of the most important privacy laws affecting your business is crucial. 

At Citadel Blue, we specialize in helping businesses like yours protect their data subjects and address data privacy issues with confidence. 

Contact Citadel Blue today at 203-633-4000 or email us at info@citadelblue.com to ensure your business stays compliant and ahead of the curve.

FAQ

What is the California Privacy Protection Agency (CPPA)?

The California Privacy Protection Agency (CPPA) is a regulatory body established by the California Privacy Rights Act (CPRA) to enforce privacy laws in California. The CPPA is responsible for overseeing the implementation of the CCPA and the CPRA, ensuring businesses comply with the new requirements. 

This agency also addresses privacy issues related to how businesses share personal information and manage consumer data privacy for California residents. With the CPPA's involvement, privacy for California residents has become more robust, offering enhanced data privacy rights.

What is considered sensitive personal information under the CPRA?

The CPRA defines sensitive personal information as a specific category of personal information that includes data such as Social Security numbers, precise geolocation, racial or ethnic origin, religious beliefs, and more. 

This new category of personal information must be handled with extra care, and businesses must allow consumers to limit the use and disclosure of their sensitive personal information. Since the CCPA went into effect, the concept of sensitive personal information has become critical in addressing privacy issues and ensuring consumer data privacy.

Who must comply with the CCPA?

Businesses that operate in California and meet specific thresholds must comply with the CCPA. These thresholds include having gross revenues exceeding $25 million, handling the personal data of 50,000 or more consumers, or earning 50% or more of their revenue from selling personal data. 

Additionally, businesses that sell the personal information of California residents or share personal information for advertising purposes are required to adhere to the CCPA and the CPRA. Compliance with these laws is essential for protecting consumer data privacy and managing privacy issues effectively.

How does the California Privacy Rights Act differ from the CCPA?

The differences between the CCPA and CPRA are significant, as the California Privacy Rights Act (CPRA) builds upon the foundation laid by the CCPA. The CPRA defines new concepts like sensitive personal information and introduces additional data privacy rights for consumers. 

It also establishes the California Privacy Protection Agency, which takes over enforcement responsibilities from the California Attorney General. The CPRA has introduced new privacy measures and more stringent regulations to ensure better protection of consumers' personal information.

What are the key points in CPRA vs. CCPA?

When comparing CPRA vs. CCPA, it's important to note that the CPRA enhances and expands the protections initially provided by the CCPA. The CPRA defines new categories, such as sensitive personal information, and introduces stricter rules around how businesses can share personal information. 

The CPRA also requires businesses to comply with new requirements related to data minimization and retention, ensuring that consumers’ data is only kept for as long as necessary. These changes highlight the differences between CCPA and CPRA and their impact on consumer data privacy.

What are the new requirements to comply with the CPRA?

To comply with the CPRA, businesses must adhere to several new requirements. These include providing consumers with the right to correct inaccurate information, limiting the use and disclosure of sensitive personal information, and ensuring transparency in data retention policies. 

Additionally, businesses must comply with the General Data Protection Regulation (GDPR) standards if they handle data for European consumers, as the CPRA aligns with some of the GDPR's stringent data privacy rights. These new privacy measures enhance the protection of consumer’s personal information.

What are the differences between CCPA and CPRA in terms of consumer data privacy?

The differences between CCPA and CPRA are crucial for understanding the evolving landscape of consumer data privacy. While the CCPA laid the groundwork for consumer rights, the CPRA introduced more comprehensive protections, particularly for sensitive personal information. 

The CPRA defines new rights, such as the right to correct personal data and the right to limit the use of sensitive data. It also strengthens enforcement mechanisms through the creation of the California Privacy Protection Agency. These enhancements reflect a growing emphasis on privacy for California residents and ensure that businesses meet the new privacy standards.

Why do businesses need to comply with the CPRA?

Businesses need to comply with the CPRA because it is a legally binding extension of the CCPA, with enhanced regulations and new requirements. Non-compliance can result in significant penalties and damage to a business's reputation. The CPRA defines stricter rules around the handling of sensitive personal information and requires businesses to provide greater transparency to consumers regarding how their data is used. 

By complying with the CPRA, businesses not only protect themselves from legal risks but also foster trust with consumers by safeguarding consumer’s personal information and addressing privacy issues proactively.