New Year, New Privacy Rights — and Rules
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The penalties are strict, but there's a grace period
The law takes effect Jan. 1, but enforcement won't begin until July 1. After that, your business can be fined $2,500 - $7,500 for each violation. For the first time, individuals also have the right to bring costly lawsuits against businesses that don’t comply with disclosure or deletion requests, or are responsible for data breaches of their personal information.
Is your business ready?
If your company does business in California, there are several steps you’ll need to take to comply with the law:
Update your privacy policy to be clear and transparent.
Notify employees and contractors in California about the personal information you’re collecting and how it’s being used. Rippling can automate this privacy notice for you starting in mid-January.
Implement security best practices to avoid data breaches. Rippling customers have access to password management, app provisioning, device management, and more.
Additionally, companies that collect personal information from consumers should:
Conduct an inventory of all the personal data your business collects and who has access to it -- including vendors.
Give consumers at least two ways to submit requests to ask for their data and demand that it be deleted. One must be a toll-free phone number.
Establish protocols to make sure you can respond to these consumer requests within 45 days.
If your business sells customer data, you must notify them and provide a clear link on your website titled "Do Not Sell My Personal Information" to let them opt-out.
Train any employees who handle consumer data requests or are responsible for your company’s legal compliance on their responsibilities under CCPA.
California is the first state to enact comprehensive data privacy legislation, but it won’t be the last. In fact, nearly two dozen other states have already followed suit. Whether or not you're subject to the law on Jan. 1, CCPA will set a new standard for how businesses nationwide manage data. Don’t delay. Invest now in getting your house in order.
Disclaimer
Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.
Author
Vanessa Wu
Rippling General Counsel
Vanessa is based in San Francisco and serves as the General Counsel at Rippling, where she oversees the Legal, Compliance, Enterprise Risk, and Internal Audit teams. Before Rippling, she advised on high-stakes litigation in private practice, and served as the GC of publicly-traded technology company.
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