The California Consumer Privacy Act of 2018
—The toughest privacy bill in the nation is here.

Despite lobbying effort by special interest groups, the California Consumer Privacy Act of 2018 has been signed by Governor Jerry Brown and the bill will take effect at the end of next year.

You can read the full text of the bill here, but this is the gist of it based on the consumer and the business’ perspectives.

 

Have you met the compliance standard?

—01 Consumer’s Perspective
  • Right of Access: A consumer has the right to request businesses that collect personal information disclosed to the consumer, the categories and specific pieces of personal information the business has collected.
  • Right of Deletion: A consumer has the right to request that the business delete any personal information that was collected.
  • Right to know where your personal information was sold: A business must release information about how the consumer’s personal information was sold or disclosed, and to whom (or which third parties) it was disclosed. 
  • Financial incentives from businesses: A consumer can accept incentives from businesses for the collection, sale, and deletion of personal information. This consent can be revoked at any time. 
  • Ultimately, there is more control in hands of the consumer to control how their data is collected, used and sold in California (and beyond).
—02 Business’ Perspective
  • Businesses will be required to comply with the bill. The bill applies to “any business  that collects a consumer’s personal information.”
  • Businesses will have to implement new infrastructure to accommodate consumers’ requests. Businesses will have to alter, for instance, their online appearance to reflect its status of compliance as the bill requires “[…] a clear and conspicuous link on the business’ internet homepage, titled “Do Not Sell My Personal Information.”
  • Businesses will have to work through the bill’s confusion. Businesses will have to do research and consult experts on ways to be compliant, as the bill is confusingly drafted. For now, the biggest question remains whether a business can charge a different price for services if the consumer exercises their right.
  • Businesses can offer consumers certain financial incentives for the collection, sale, and deletion of personal information. This would mean additional resources to implement, maintain and update these incentives for the businesses.

The law still won’t take effect until January 1, 2020, giving companies time to prepare for it. Talk to an MDS expert today to take the first step!

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