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The California Consumer Privacy Act (CCPA) has gone into effect, and organizations are looking for ways to comply with this regulation as efficiently and cost-effectively possible. Several frameworks can be used to help narrow down the route you should take when trying to comply with the CCPA. That being said, here are the key steps every organization needs to keep in mind when trying to comply with the CCPA.
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1. Know How the CCPA Affects Your Organization
The CCPA covers any normal individual who may be a California inhabitant. As restricted to a “legitimate individual,” which may include private businesses or open governments, a “common individual” is a human being. The law commands that California customers have a right to know what individual data companies are collecting on them and how they plan to utilize that information. Moreover, they must be able to opt-out of that data being sold and receive a duplicate of their data upon asking. If they are a casualty of a data breach, these customers can sue for damages.
Who must comply with these controls? The answer is any for-profit organization that meets the following criteria:
- Collects the individual data of consumers
- Conducts any type of commerce in California (including e-commerce)
In addition, the CCPA covers any organization that meets the following requirements:
- Gross income of $25 million or more
- Collects individual information for 50,000 or more shoppers, gadgets, or households
- Obtains half of its annual income by offering individual data
To begin, you need to understand if and how the law concerns you. An exemption is made for data subject to the Gramm-Leach-Bliley Act (GLBA). However, financial institutions should be clear that the CCPA is much broader than the GLBA.
2. Map Consumer Data
Once you confirm that the CCPA applies to your organization, the next step is to start mapping the client information you collect. Start by gathering answers to the following questions in writing:
- What individual information do you collect right now?
- What are your strategies for information collection?
- Where and how do you store this data?
- Do you share the information you collect? If so, with whom?
- Do you offer the information, give in trade for a benefit, or utilize for a diverse purpose?
As of January 1, California buyers may ask how a company collects and uses their data. You should be able to answer these types of questions as they emerge. Remember to get this same data from any third-party merchants that hold personal information for your company. They may perform this same data-mapping process and notify you of the outcome.
3. Fine-Tune Your Privacy Disclosures
- The categories of individual data your organization collects
- Any particular piece of data collected
- Where you accumulate that individual data from
- The sorts of third-parties you share the data with
- The purposes for which you may utilize the information
You must then post your results in a public forum, commit to upgrading your methods each year, and be prepared to supply more points of interest as needed upon the client’s request.
4. Allow Customers to Opt-Out
Along with posting your public privacy disclosure, you should also offer consumers the opportunity to, without a doubt, make sure your company doesn’t sell their data.
Do so by creating a secure link on your home page titled “Don’t Sell My Data.” Guests can click the link and be routed to a distinctive landing page, where they can ask to be exempted.
5. Decide How to Handle Client Requests
Your organization should be prepared to field and react to client demands around how it uses private information. To do so, you will need a step-by-step directive that outlines how your groups should handle these inquiries. Answers must be provided within 45 days, free of cost, as stated by the CCPA. Some things a consumer can request are:
- A copy of their personal information
- Deletion of their individual data
- Explanation of what categories of individual data your company sells
- Dropping of client data that is well over 16 years old
- Requirement of opt-in for clients between 13 and 16 years of age
- Obtaining guardian consent for any clients below 13 years of age
6. Upgrade Your Software and Systems
To implement these guidelines effectively, your company will have to make changes and upgrade your existing system software. Because such updates can take months, it would be wise to file the necessary IT change requests as soon as possible.
7. Train Your Teams
It’s vital to document these new steps, but it’s also integral that your company’s public-facing team be well versed in these new requirements and what they mean for your business. Conduct employee-training sessions focused on the following:
- What the CCPA scope involves and how your organization fits into it
- Whether the law applies to your whole structure or only California customers
- How the CCPA characterizes a customer (as an inhabitant of California)
- How to coordinate or handle client requests regarding their private data
8. Protect Against Data Breaches
Keep in mind that California consumers can take strict legal action as a result of your failure to preserve security procedures. This could not only create a dent in your finances but also tarnish your reputation with customers, which is why it’s imperative to reinforce your data security measures. Audit your existing procedures and actively conceive plans to keep the private information safe. Ask all employees to learn more about the use of VPN services, antivirus, anti-malware, or other encryption tools.
In the event that you don’t already have a vigorous security rights management plan, now is the time to put one in place.
In light of global privacy regulations springing up and organizations trying their best to protect consumers’ rights, it is best to have a roadmap rather than moving forward without a plan in place. All in all, these privacy regulations are a reality that global organizations will need to comply with or risk facing fines and penalties in the future.