In January 2020, the California Consumer Privacy Act (CCPA) went into effect. Under the CCPA, residents in the state of California get more control over their data-related rights that companies such as Facebook, Google, data brokers, and more collect from them.
While these rights are somewhat limited, their very existence is considered a win for consumers and their long-awaited privacy. The privacy act brings about some necessary changes in terms of how the data collection industry conducts its data mining moving forward.
In this article, we’re going to tell you everything you need to know about the CCPA, including what exactly its parameters are, how it’ll affect publishers, and which benefits come with it.
What is the CCPA?
As mentioned above, the CCPA is a state-wide data privacy law that enforces data privacy regulations for California residents. It’s also the first law of its kind in the United States.
The CCPA is very similar to the General Data Protection Regulation (GDPR) that was set into motion over a year ago regarding the regulations of data usage for European citizens. Under the CCPA, consumers gain more control over personal information businesses collect about them through their websites.
The new privacy rights that Californians now have under the CCPA include:
- The right to know about any personal information a business website collects about them, as well as how it is intended to be used and shared
- The right to delete any personal information collected from them, with several exceptions
- The right to opt out of the potential sale of their personal information by the business n question
- The right to non-discrimination for exercising their rights under the CCPA
Under the CCPA law, individuals must also be given an opt-out option for data collection from all business websites. These individuals are also responsible for requesting that a company refrains from selling their personal information to any third parties.
Additionally, individuals may also request to have their personal information deleted as well as to inquire about what information of theirs has been specifically collected, why it was collected, and with whom it’s intended to be shared or sold.
Lastly, any business that collects data from California residents needs to comply with the CCPA regulations. This includes websites that run any programmatic advertising served to Californians.
How does CCPA affect publishers?
On the publisher’s end, the CCPA stipulates three thresholds that apply and require them to adhere to the new law. Those thresholds include:
- Any for-profit businesses that sell the personal information of more than 50,000 Californians annually
- Any for-profit businesses that have an annual gross revenue that exceeds $25 million
- Any for-profit businesses that garner more than half of its annual revenue from selling the personal information of Californians
These threshold rules also apply to any companies that share common branding (i.e., a trademark, service mark, shared name, etc.) with another business that’s liable under the CCPA.
If your business meets any of the above criteria, here’s how it affects you and your website:
- Your website is required to inform its visitors before or at the time of data collection about the type of information it collects and for which purposes.
- Your website is required to display a “do not sell my personal information” link to allow your visitors to opt out of any third-party sales.
- For the minors under the age of 16 that visit your website, you’re required to get their opt-in consent before you can collect their personal information and use it. If they are under the age of 13, you need to get the consent of their parent or guardian.
- If your business receives a legitimate request from a customer or site visitor for the personal information you’ve collected, you’re obligated to provide them with the personal information that has been collected within the past 12 months — free of charge
What are the benefits of the CCPA?
The CCPA law may seem to only benefit consumers since it revolves around creating transparency and protecting private information. However, it also benefits businesses and publishers.
As of right now, these benefits tip the scales in favour of California-based business as the CCPA requires said business to comply with the rules and regulations. What this does is create a level playing field, since there isn’t an advantage to gain through collecting private consumer data.
Another significant benefit is that following the CCPA law as a global business creates trust among your audience. Eventually, the rest of the United States will catch on to the privacy act, but for now, boasting the added security can give you an advantage over the competition.
Since the CCPA intends to restrict the sale of personal consumer information between businesses, you’ll have to rely on first-party data. First-party data is unique in that it provides the most accurate consumer information which allows businesses to have more reliable data for their marketing strategies and more.
Get ready for more regulations
As mentioned above, these privacy regulations will eventually spread through the rest of the world, which is why it’s a good idea to begin setting up your website for compliance using the CCPA as your guide.
Fortunately, you can partner with an Ad Ops partner to help navigate privacy laws like GDPR and CCPA.