California Consumer Privacy Act

The CCPA covers “personal information,” or PI, which it defines as: information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household. The statute includes a long list of what counts as PI, including online identifiers and IP addresses. The inclusion of those two is particularly broad, bringing into scope information that one generally may not consider as PI.

Note: CCPA is applicable to B2B and employee information, this is unique among U.S. state consumer privacy laws.

California’s definition of sensitive PI includes the following information where that information is not publicly available information:

• Social Security, driver’s license, state identification card, or passport numbers;
• Account login credentials, financial account, debit card, or credit card number in combination with any required security or access code, or password;
• Racial or ethnic origin;
• Religious or philosophical beliefs;
• Union membership;
• Content of personal communications unless the business is the intended recipient of the communication;
• Mental or physical condition or diagnosis;
• Sex life or sexual orientation;
• Citizenship or immigration status;
• Precise geolocation data; and
• Genetic or biometric data processed for identification purposes.

De-identified data is exempt from CCPA requirements. Where a business processes de-identified data, the CCPA requires it to take reasonable measures to ensure the data cannot be associated with an individual; publicly commit to maintaining such data without an attempt to re-identify it; and contractually obligate any recipients of the data to comply with the CCPA rules on de-identification.

Notably, unlike other state privacy laws, Pseudonymization of data grants little benefit under the CCPA and outside of research scenarios, it does not impact compliance obligations.

Note: The CCPA uses the terms de-identification, pseudonymization and aggregation imprecisely. It also bestows on de-identification a higher level of anonymization than pseudonymization, and this imprecision has caused some confusion around when that level is achieved.

In a word: NO!

Parental consent is required to process PI about a known child (under 13) in accordance with COPPA, and individual consent is required to sell the PI of a person under 16.

Consent is also required for businesses to enter consumers into a financial incentive program.

Under the CCPA, a privacy notice must include:

• The categories of PI collected in the preceding 12 months;
• The categories of sources of PI;
• The business purpose for collection, selling, or sharing PI;
• Whether you sell or share the PI;
• The categories of PI disclosed in the preceding 12 months by category;
• The categories of PI sold or shared in the preceding 12 months by category;
• The categories of third parties with which PI is shared;
• The categories of PI that are shared with third parties;
• Privacy rights;
• Methods for a consumer to exercise their privacy rights (see below)
  • At least two methods including, at minimum, a toll-free phone number or if you operate exclusive online an active email address.
• Retention period or method for determining the retention period;

California defines “sale” as selling, renting, releasing, disclosing, disseminating, making available or transferring a consumer’s PI by the business to a third party for monetary or other valuable consideration.

California defines “sharing” as sharing, renting, releasing, disclosing, disseminating, making available or transferring a consumer’s PI by the business to a third party for cross-context behavioral advertising, whether or not for monetary or other valuable consideration.

Service providers or contractors collecting PI pursuant to a written contract with the business required by the CCPA and its regulations does not constitute selling or sharing PI.

Unique to California, the CCPA grants enforcement authority to both the Attorney General and a dedicated privacy body, the California Privacy Protection Agency. Additionally, there is a limited private right of action for certain data breaches due to a business’s failure to implement and maintain reasonable security procedures and practices. Consumers may be eligible to recover financial damages ranging from $107 to $799 per consumer per incident, or actual damages, whichever is greater.

Unintentional violations are subject to civil penalties of up to $2,663 per violation, while intentional violations can incur penalties of up to $7,988 per violation. CCPA’s right to cure sunsetted January 1, 2023.