CCPA and How it Will Affect Your Business

With the new law in effect, many businesses around the world are wondering what parts of the CCPA will apply to them.

2020 Predictions for CCPA and How it Will Affect Your Business

First, what is the CCPA?

The California Consumer Privacy Act (CCPA) was designed to protect consumer privacy rights. This means that consumers will gain new rights in regard to the personal information that companies are able to gather about them online. Now consumers will be able to demand information on what personal data businesses have on them, including their name, address, location, browsing history, consumption behaviors, and more. 

With the new law in effect, many businesses around the world are wondering what parts of the CCPA will apply to them. The truth is that most companies in the U.S. have customers in the state of California, which means if you meet any of the criteria below you’re required to comply to avoid hefty penalties.

  • Exceed annual gross revenue of $25 million 
  • Obtain the personal information of 500,000 or more California residents, households, or devices each year 
  • Acquire half or more gross revenue from the sale of California residents’ personal information

2020 predictions for CCPA

Data mapping will deliver significant value

Mapping out data accurately can be a challenging task for many businesses but it’s the first step to take in order to comply with this privacy law. More and more companies are going to start implementing data mapping in 2020 because, when done correctly, it can promote organization hygiene, identify problems and security risks, and improve operational inefficiencies because it gets all company information in an organized manner, creating easy access to information.

Businesses will increase their cybersecurity 

Cybersecurity and risk management will be the main focus for many businesses in 2020. Companies have already started strengthening all written plans and policies to validate their commitment to strong information security programs. Those that ignore this process run the risk of facing federal class-action lawsuits from those whose information gets compromised.

More state privacy laws will pass

Since the CCPA went into place on January 1, it has created a domino effect across the country. So far, ten other states have followed in California’s footsteps by proposing or passing similar privacy laws that give consumers the right to control their personal information. If all of the state privacy laws pass, 34% of the people living in the U.S. will have at least some rights to control their data. As more laws are passing across the country, businesses may find it hard to keep up with regulations in their area

Companies will begin to audit how they collect data

As more and more privacy laws emerge, more companies are going to start closely auditing and monitoring their compliance measures before they find themselves facing questions about how they’re handling and processing personal data. Many businesses will start to evaluate their current process and implement new tactics, like automation tools, to effectively gather consumer data. 

How will this impact your hiring plans?

With the CCPA now in place, many organizations are working to make sure they comply to avoid legal ramifications. Many companies have started hiring consultants to make sure their data collection processes aren’t violating the law.

We have access to the talent that can help your organization. Contact our team today, we’d like to hear from you and help form a solution.