How will the California Consumer Privacy Act affect businesses that use or re-sell customer data

The California Consumer Personal Information Disclosure and Sale Initiative may appear on the ballot in California in November 2018, inspired by the European measure called GDPR, which will come into effect next month.  The CA Privacy Act seems to be on the same page with the New Deal on Data, which would “rebalance the ownership of data in favor of the individual whose data is collected. People would have the same rights they now have over their physical bodies and their money.”

Although this regulation is intended to strengthen and unify data protection and privacy for individuals and is targeted at tech companies and the data ecosystem that most customers don’t even know about or understand, its implementation will have small companies bear a huge fiscal burden. As they all say, with Big Data come big responsibilities.

As such, customers would have the right to request a business to:

  • release information the business collected about the consumer to the consumer;
  • release information on how the consumer’s personal information was sold or disclosed and to whom; and
  • not sell or disclose the consumer’s personal information.

The measure would also allow consumers to sue businesses for security breaches of consumers’ personal information or for other violations of the initiative’s provisions.

Sooner than later, this initiative will be put in place. Understanding it might affect you and preparing for it now will help you diminish costs in the long run and protect your company from any legal infringement.

Call us today for an appointment and let’s plan together.

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