Key Compliance Requirements Under the California Privacy Rights Act (CPRA)
The California Privacy Rights Act (CPRA) did not replace the original CCPA. Instead, it made the rules much stronger. Starting on January 1, 2023, it added new requirements for businesses handling the personal details of California residents.
It is important to understand these changes for any group managing data in the U.S. today. It requires significant changes to how data is stored.
What The CPRA Added To The CCPA
The CPRA introduced several big changes to the law. It created a category called “sensitive personal information” with extra protections. This category includes very personal details that require special handling to stay legal.
It also gave people the new “Right to Correct” mistakes. The law forces companies to minimize what they collect and establishes the California Privacy Protection Agency (CPPA) to enforce these rules.
Which Businesses Are Required To Follow The CPRA?
This law applies to for-profit businesses serving Californians that meet one of three specific rules. This includes having over $25 million in yearly revenue, handling data for 100,000 or more people, or getting half their money from selling data.
Understanding Sensitive Personal Information Under The CPRA
The CPRA created the “sensitive personal information” (SPI) category. This data needs higher protection and includes Social Security numbers, exact GPS locations, race, and religious beliefs. This right must be clearly labeled for everyone.
Consumers can now tell a business to limit the use of SPI to only what is necessary for a specific service. This is done via an opt-out mechanism separate from the “Do Not Sell” link.
How The CPRA Limits Data Collection And Storage
These rules require the most significant operational changes for modern businesses.
Why Businesses Must Limit the Data They Collect
Under data minimization, companies can only collect information that is truly needed for a specific, disclosed purpose. They cannot collect extra data just in case for future use without telling the consumer. Over 60% of privacy professionals reported that these minimization rules were the hardest to implement.
Why Companies Must Be Transparent About Data Retention
Under the storage limitation rule, businesses must disclose exactly how long they intend to keep each category of data. Keeping data longer than necessary for the disclosed purpose is now a violation of the law.
The Privacy Rights Consumers Have Under The CPRA
The CPRA keeps all CCPA rights and adds several more:
- Right to Know: See what data is collected and how it is used.
- Right to Delete: Ask a company to erase your personal info forever.
- Right to Correct: Ask a company to fix the wrong info they have about you.
- Right to Opt-Out: Stop the sale or sharing of your private data.
- Right to Limit SPI: Control how your sensitive info is used by companies.
- Right to Non-Discrimination: No retaliation for using these legal privacy rights.
Businesses must finish these requests within 45 days.
Why Businesses Must Hold Their Partners Accountable For Data Protection
The CPRA looks at business partners. Companies must ensure contractors follow these privacy rules. Contracts must be written down and include strict limits on data use.
They must also notify the business if they hire other workers. Businesses relying on informal handshakes must redo their contracts to stay legal and avoid fines.
How The CPRA Regulates Automated Decisions And Data Profiling
The CPRA gave the CPPA the power to regulate how computers and AI make decisions. Rules require businesses to tell people when they use automated systems for major choices. This includes decisions about jobs, housing, or loans.
You may have the right to opt out of profiling. Companies must perform risk assessments for high-risk data processing to ensure safety for consumers.
The CPRA raised the bar for privacy. It is here to verify the difference and protect your digital life. If you need guidance, consult with an expert today.
