CCPA – How Will New Privacy Law Impact Trade With America?
You wait years for data privacy regulations to catch up with current data processing requirements and then, like buses, two arrive at the same time.
Many UK organisations may well feel like they have been hit by a bus, given the dramatic impact that the General Data Protection Regulation (GDPR) has had since its implementation in May. Following closely behind is the California Consumer Privacy Act (CCPA) 2018 (AB 375), passed in June, which will come into force in 2020.
In a nutshell, it’s California’s answer to the GDPR. But don’t be fooled. It may look similar to the GDPR but there are nuances organisations need to understand to comply and stay on the right side of the regulations. Especially as it’s widely accepted that CCPA will set the bar for privacy rules across other US states.
California holds a key role, especially when it comes to trade with the UK. For example, the California Chamber of Commerce notes that the UK is California’s 10th largest export destination, with over $5 billion in exports.
CCPA versus GDPR
What do UK businesses need to be aware of? Well, the overlap between several of the CCPA rights and the GDPR include the right to information and the right of access. But the obvious difference is that that the CCPA rights only apply to persons that reside in California, whereas the GDPR applies to processing of EU citizen data by organisations regardless of whether they are located within the EU or not.
To view an easily searchable text version of the CCPA, click here.
Understanding the Differences
Firstly, let’s take a step back and understand the organisations that each regulation will apply to. GDPR is relatively straight forward; it applied to any organisation holding personal data on EU citizens.
CCPA on the other hand will apply to for-profit organisations that process personal data of Californian residents and either take $24 million in annual revenue, hold the personal data of 50,000 people, households, or devices or take at least half of their revenue in the sale of personal data.
Another of the key differences between GDPR and CCPA is that obtaining consent under California’s law differs from the methods required under the GDPR. In Europe, consumers must opt in and give consent for their data to be stored and used. With CCPA, consumers can opt out of the sale of their personal information.
What does CCPA mean for the rights of the individual?
One of the main aims of the GDPR is to give individuals better visibility and control over their data, and as such it offers better access to data, right to erasure, correction and objection to automated processing. It also includes the right to notification in the event of a data breach.
The CCPA aims to improve the right of access to data being held, and the right to know how personal data is being used and who data has been provided to. It enforces the right to disclosure and objection relating to who data is being sold to and guarantees no discrimination if an individual objects to their data being sold.
The financial penalties also differ between the GDPR and CCPA. Under GDPR, organisations can be fined 4% of global turnover or €20m, whichever is greater. The CCPA imposes penalties of $750 per consumer per incident or actual damages, whichever is greater. As for penalties assessed against businesses, the highest amount is $7,500 per violation, notwithstanding penalties under California’s Unfair Business Practices Act.
For a breakdown of the similarities and differences between the GDPR and CCPA, click here.
Becoming and remaining CCPA compliant
Preparation for CCPA will share many characteristics with actions undertaken for GDPR compliance. Coordination is vital, including executive sponsors and stakeholders from legal, compliance and data privacy teams, people with oversight of technology and its security and representatives from the key personal data owners in an organisation (e.g. HR, sales, marketing, customer service).
The key is starting with data inventory. Prioritise information stores likely to contain personal data and those with poor governance. Be practical and don’t rely on your corporation’s answers to questionnaires for your data inventory, or you will get an idealistic view of your risk (a head of marketing is likely to say the personal data they process is in the marketing system, forgetting that it got there via email and has been exported into spreadsheets, for example).
The aim is to find all relevant data within your organisation. In fact, “identifying what data you hold” was listed as a key step by the UK’s ICO as well as other national authorities in the run up to GDPR. Given how rapidly data is collected, created and stored by organisations, it would be very difficult to find this out manually.
What is correct at the beginning of this year could be wildly different in 6 months’ time, and attempting to complete tasks manually will result in a catalogue of where people think data is held and processed (usually the systems designed to hold the data, like a CRM system) rather than where data is actually held (such as in a spreadsheet extracted from the CRM system to run a regular report).
But the task of creating a data inventory does not need to be arduous, there are tools available that use Big Data and Machine Learning principles as part of an eDiscovery and data mapping process, giving you the ability to rapidly find and categorise data and continue to do so on an on-going basis – ensuring continual compliance for your business rather than just at a single point in time.
Technology to simplify compliance
It’s clear that the tasks above are the first steps in what will be an on-going process. But these steps are crucial for any organisation that wants to get it right first time.
To simplify the compliance process, Exonar’s Privacy Dashboard can provide an easily digestible top-down view of the of all of the information a business holds in relation to the GDPR and the CCPA.
Exonar’s solution achieves this by indexing files in any format from sources like cloud, file shares and mail servers, and locating passwords, customer information, credit card numbers, salaries and company confidential records.
This means all of your data, from databases to documents, is mapped and classified and able to be searched instantly – even with advanced queries. This allows users to find any information held in seconds or create visualisations to help understand data. When you understand your data, it’s easy to make decisions about what data to keep or delete and what needs to be done in order to stay compliant with regulations relevant to your business.
To find out more about the CCPA and Exonar’s solutions, visit https://www.exonar.com/ccpa/