With limited budgets and resources available to implement all the necessary requirements, small and medium-sized businesses may be challenged to comply with consumer data privacy regulations. If you fail to comply with CPRA regulations, you may face expensive financial penalties and possible damage to your reputation.
Consumer data allows businesses to deliver more unique, personalized customer experiences. By providing valuable insights, data can help business owners make better, more informed decisions about how to cater to customers and their needs. But with this power, comes responsibility: Owners and managers of small to medium-sized businesses (SMB) are responsible for ensuring the privacy and security of customer data.
To protect consumer privacy, California introduced legislation, the California Consumer Privacy Act (CCPA), that defines how companies can gather, use, store, and manage customer data. Starting on January 1, 2023, California will extend the CCPA with the California Privacy Rights Act (CPRA). The CPRA defines the rights that consumers, employees, and business contacts, also known as data subjects, have to review, access, delete, manage, and update their data.
Regardless of where your business is located, if your customers reside in California and you meet the criteria below, then the CPRA applies to your business:
With limited budgets and resources available to implement all the necessary requirements, small and medium-sized businesses may be challenged to comply with this privacy regulation. If you fail to comply with CPRA regulations, you may face expensive financial penalties and possible damage to your reputation.
CPRA requires companies to:
The state of California has estimated that compliance with CCPA would cost businesses $100,000 with an additional $127 needed to meet CPRA regulations. Gartner estimates that it costs a company an average of $1,400 to address a single consumer data access request. As part of GDPR compliance (the European privacy law), EU companies receive between 30 to 240 requests per month.
Large businesses, with more sizable budgets, legal teams, and security teams, are better positioned to implement compliance programs. But SMBs may have a more difficult time pulling together the budget and resources needed for compliance, while working to drive revenue and remain competitive in their markets. If an SMB fails to comply, the consequences could put them out of business.
California may penalize companies for unauthorized data access–through breach, exfiltration, theft, or disclosure–if the access is the result of the business' negligence to implement and maintain reasonable security procedures and practices. The law allows for penalties of $100 to $750 per consumer per incident, or actual damages, whichever is greater.
With CPRA in effect starting January 1, 2023, SMBs should review the sensitive personal information they collect, how they use it, and where they store it. Under CPRA, personal information includes race, ethnicity, sexual orientation, and health data. Even if a small business is exempt from privacy regulations, it should still prepare to secure its users’ data and privacy, as it may need to meet those qualifications in the future.
To cost-effectively ensure they are complying with CPRA, businesses will have to manage and track consumers’ requests to opt-out, review, access, delete, and obtain their data.
Business owners and leaders need a system for tracking consumer requests to opt-out, review, access, delete, and obtain their data. Without an accurate system for tracking the status of each request, business owners risk costly penalties and damage to their reputations.
To strengthen and enhance customer loyalty, PrivacyCare offers a system that features:
For help with your consumer data privacy compliance challenges, start with PrivacyCare for free.
PrivacyCare CEO and Co-Founder Brad Garsten joins Microsoft, Squire Patton Boggs and moderated by IAPP - International Association of Privacy Professionals, to discuss the business, legal, and technical implications of the new state privacy laws and how they will impact your business.
January 20, 2023
To ensure that you are complying with data privacy laws like GDPR and CPRA, business owners have to manage and track consumers’ requests to opt out, review, access, delete and obtain their data. Are you ready for these new consumer data privacy laws?
March 8, 2023
It doesn’t matter where your business is located-–the CPRA applies to your company if your customers reside in California. If you fail to comply with CPRA regulations, you may face expensive financial penalties and possible damage to your reputation. It’s important to note that CPRA defines sensitive personal information more broadly than CCPA. Under CPRA, personal information includes race, ethnicity, sexual orientation, and health data.
December 17, 2022
Avoid costly fines, protect your customers personal data and protect your brand value by building customer trust. Jumpstart your consumer data privacy program and get started for free today.Get Started
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