Title: Understanding the California Privacy Rights Act (CPRA)
Introduction:
In November 2020, Californians voted to pass Proposition 24, also known as the California Privacy Rights Act (CPRA). This groundbreaking legislation expands upon the California Consumer Privacy Act (CCPA), further strengthening consumer privacy rights and introducing new obligations for businesses. Understanding the CPRA is crucial for both consumers and businesses operating in California.
What is CPRA?
The California Privacy Rights Act (CPRA) is a comprehensive privacy law aimed at enhancing consumer privacy rights and increasing transparency and accountability for businesses that collect personal information. It builds upon the foundation established by the CCPA and introduces additional provisions to address evolving privacy concerns in the digital age.
Key Provisions of CPRA:
1. Expanded Definition of Personal Information:
CPRA expands the definition of personal information to include sensitive categories such as precise geolocation, race, ethnicity, religion, genetic data, and biometric information. This broader definition provides consumers with greater control over their sensitive data.
2. Establishment of the California Privacy Protection Agency (CPPA):
CPRA establishes the California Privacy Protection Agency, an independent regulatory body responsible for enforcing and implementing the provisions of the CPRA. The CPPA will have authority over investigations, rulemaking, and enforcement actions related to consumer privacy rights.
3. Enhanced Consumer Rights:
CPRA grants consumers new rights, including the right to correct inaccurate personal information, the right to limit the use of sensitive personal information, and the right to opt-out of the sharing of their personal information for targeted advertising and profiling purposes.
4. Stricter Requirements for Businesses:
CPRA imposes stricter requirements on businesses, including mandatory risk assessments and annual cybersecurity audits for high-risk processing activities. It also introduces a new category of “sharing” personal information, requiring businesses to disclose such practices and provide consumers with the option to opt-out.
5. Increased Penalties for Non-Compliance:
CPRA introduces significant penalties for non-compliance, including fines of up to $7,500 for each intentional violation of the law or for violations involving the personal information of minors.
Implications for Businesses:
Businesses operating in California must ensure compliance with the CPRA to avoid penalties and maintain consumer trust. This may require updating privacy policies, implementing new data protection measures, and providing mechanisms for consumers to exercise their rights under the CPRA.
Conclusion:
The California Privacy Rights Act (CPRA) represents a significant step forward in the protection of consumer privacy rights. By expanding upon the CCPA and introducing new provisions, CPRA aims to address emerging privacy challenges and empower consumers to have greater control over their personal information. Businesses must take proactive steps to ensure compliance with the CPRA and uphold the privacy rights of Californians in the digital age.