California Privacy Rights Act (CPRA)
The California Privacy Rights Act (CPRA) is a significant piece of privacy legislation in California, which builds upon and amends the earlier California Consumer Privacy Act (CCPA). Enacted to enhance privacy rights and consumer protection, the CPRA introduces several new provisions and strengthens existing ones.
Key Features of the CPRA:
Expanded Consumer Rights:
Right to Correct: Consumers have the right to correct inaccurate personal information.
Right to Limit Use of Sensitive Personal Information: Consumers can restrict businesses from using sensitive personal information for specific purposes.
Creation of the California Privacy Protection Agency (CPPA):
The CPRA establishes the CPPA, a dedicated agency responsible for enforcing privacy laws, conducting investigations, and ensuring compliance.
Data Minimization and Retention Limits:?”
Businesses are required to minimize the collection of personal data to what is necessary and relevant.
Personal data must not be retained longer than reasonably necessary for the disclosed purpose.
Expanded Scope and Definitions:
The definition of “sensitive personal information” is introduced, covering data such as social security numbers, financial information, and precise geolocation.
The scope of the law extends to businesses that handle the data of at least 100,000 consumers or households.
Increased Penalties for Violations:
Penalties are increased for violations involving the data of minors under the age of 16.Consumers have enhanced rights to opt-out of the sharing of their personal data for cross-context behavioral advertising.
Impact of the CPRA:
The CPRA significantly impacts how businesses handle consumer data, imposing stricter compliance requirements and increasing transparency in data processing activities. Organizations must adapt to these changes by updating their privacy policies, enhancing data protection measures, and ensuring clear communication with consumers regarding their privacy rights.
- New Privacy Rights: The CPRA grants consumers additional rights, such as the right to correct inaccurate personal information and the right to limit the use and disclosure of sensitive personal information, including data like Social Security numbers, precise geolocation, racial or ethnic origin, and biometric information.
- Sensitive Personal Information: The CPRA introduces a new category of “sensitive personal information,” which requires special handling and additional consumer controls.
- Data Minimization and Retention Limits: The CPRA requires businesses to collect and retain only the personal information necessary for the specified purpose and to inform consumers about the retention period for their data.
- Opt-Out Rights for Sharing Data: The CPRA expands the opt-out rights to include the sharing of personal information for cross-context behavioral advertising, in addition to the existing opt-out rights for the sale of personal information.
- Expanded Definition of Personal Information: The CPRA broadens the definition of personal information to include data such as geolocation data, employment information, and inferences drawn to create a profile about a consumer.
- Establishment of the California Privacy Protection Agency (CPPA): The CPRA establishes a new regulatory body, the California Privacy Protection Agency, to enforce the law and provide guidance to businesses and consumers.
- Enhanced Penalties for Violations: The CPRA increases penalties for violations involving the data of minors under the age of 16 and establishes more stringent requirements for businesses that process large amounts of personal information.
- Contractual Obligations for Service Providers and Third Parties: The CPRA imposes new contractual requirements on businesses when engaging service providers and third parties to ensure they comply with privacy obligations.