Introduction
The California Consumer Privacy Act [CCPA] is a State Law that came into effect on Wed, 01-Jan-2020. The Law is aimed at protecting the privacy of California residents by regulating how businesses handle their Personal Information. The CCPA is considered one of the most comprehensive Privacy Laws in the United States & it has significant implications for businesses operating in California.
The General Data Protection Regulation [GDPR] is a Regulation implemented by the European Union [EU] in May 2018, which aims to protect the privacy & personal data of EU citizens. The GDPR was introduced in response to the increasing amount of personal data being collected & processed by Organisations. It provides a framework for protecting individuals’ personal data & ensuring that businesses handle it responsibly. GDPR Compliance is a legal requirement for businesses that process personal data of EU citizens, regardless of where the business is based.
The CCPA applies to businesses that collect Personal Information from California residents & meet certain thresholds. Non-compliance with the CCPA can result in significant financial & reputational harm to businesses, including statutory damages & potential legal action. Therefore, it is essential for businesses to take steps to ensure they are complying with the CCPA’s requirements. Failure to comply with GDPR can also result in significant financial penalties & reputational damage for businesses. It is crucial that Organisations understand the Regulations & take appropriate measures to comply.
Overview of CCPA vs GDPR
The California Consumer Privacy Act [CCPA] is a data privacy law that was enacted in 2018 in California, United States. It gives California residents the right to know what personal information businesses collect about them, the right to request the deletion of their personal information & the right to opt-out of the sale of their personal information.
The General Data Protection Regulation [GDPR] is a Data Privacy Law that was enacted in 2018 in the European Union [EU]. It aims to protect the privacy & personal data of EU citizens by regulating how their data is collected, processed & stored. It also gives EU citizens the right to access their personal data, the right to have their personal data erased & the right to object to the processing of their personal data.
The CCPA & GDPR are distinct from each other in their implementation. The CCPA is a law that automatically applies to all civil litigations taking place in California, whereas the GDPR is a framework that can be adopted by individual member states of the European Union & incorporated into their own national laws.
The CCPA & GDPR share similarities in terms of individual rights, transparency, data breach notifications & consent. Both give individuals the right to access, delete & object to the processing of their personal data & require businesses to be transparent about data practices. Additionally, both mandate that businesses notify individuals in case of a data breach & obtain explicit consent before processing personal data. These similarities reflect a common goal of protecting privacy & controlling personal data use.
Scope & Applicability
The CCPA applies to businesses that collect Personal Information from California residents & meet certain thresholds. The law defines a “business” as any legal entity that operates for profit & collects Personal Information from California residents. This includes corporations, partnerships, sole proprietorships & other forms of business entities. To determine whether a business needs to comply with the CCPA, there are three main criteria to consider: revenue threshold, data collection threshold & business type.
The GDPR applies to all organisations that collect, store & use personal data of EU citizens, irrespective of where the organisation is based. Hence, compliance with GDPR is mandatory for any organisation that processes personal data of EU citizens.
The California Consumer Privacy Act [CCPA] applies to businesses that collect personal information from California residents & meet specific thresholds. These thresholds include having an annual gross revenue of $25 million or more, buying, receiving or selling the personal information of 100,000 or more California residents, households or devices per year or deriving 50% or more of its annual revenue from selling the personal information of California residents. Compliance with CCPA is mandatory for businesses that meet any of the above criteria, regardless of their location, whether in California or another state.
The General Data Protection Regulation [GDPR] is a Regulation implemented by the European Union, which has a broad territorial scope. The GDPR applies to all Organisations that process personal data of EU citizens, regardless of where the Organisation is based or where the data is processed. This means that businesses based outside the EU are also subject to the GDPR if they process personal data of EU citizens.
Rights of Consumers
Under both the CCPA & GDPR, individuals are granted certain data rights that they can exercise.
The CCPA grants consumers the right to access & delete personal information, opt-out of sale & avoid discrimination. Businesses must respond within 45 days, which can be extended by another 45 days with notification. The CPRA expands on these rights, adding the right to correct & limit sensitive personal information & opt-out of sharing/selling sensitive data.
GDPR gives individuals the right to access, correct, delete, restrict & port personal data, object to processing & object to automated decision-making. Businesses have one month to respond, extendable by two months with a legitimate reason.
Although both CCPA & GDPR grant individuals certain data rights, there are some key differences between the two regulations.
CCPA provides non-discrimination rights to California residents, while GDPR allows individuals to restrict personal data processing. CPRA expands CCPA by providing new rights like the right to know about & opt-out of automated decision-making, correct personal info & limit the use of sensitive personal data. GDPR provides the right to access, correct, delete, restrict, port, object & object to automated data processing for decision-making & profiling.
Consent & Opt-Out
Consent
CCPA & GDPR require businesses to obtain valid consent from individuals before collecting or processing their personal data. However, there are differences in the requirements for obtaining consent under these regulations.
CCPA requires businesses to provide individuals with a notice at or before the point of data collection, while GDPR requires consent to be freely given, specific, informed & unambiguous. Additionally, GDPR requires businesses to maintain a record of when & how consent was obtained & what information was provided to individuals to demonstrate valid consent, which is not explicitly required under CCPA.
Regarding the age of consent, CCPA requires businesses to seek consent from individuals below 16 years of age or obtain parental consent for children under 13, while GDPR sets the minimum age of consent at 16, which can be lowered to 13 with parental consent in Member States.
Opt-Out
CCPA allows consumers to opt-out of their personal information’s sale to third parties, with a “Do Not Sell My Personal Information” link & instructions provided in the privacy policy. GDPR allows consumers to object to personal data processing for direct marketing & profiling by contacting the data controller. GDPR also requires businesses to include clear information on this right in their privacy policy.
Data Protection Requirements
CCPA & GDPR have specific requirements for data protection that businesses must adhere to.
CCPA & GDPR both require businesses to protect consumers’ personal information through reasonable security measures. CCPA mandates administrative, physical & technical safeguards, including access controls, encryption & vulnerability assessments, with the need to respond to consumer requests within set timeframes.
GDPR requires businesses to process personal data lawfully, fairly & transparently with a legitimate interest or explicit consent & implement technical & organisational measures such as encryption & pseudonymization. GDPR mandates data protection impact assessments for processing personal data with high risk to individuals’ rights.
Both regulations grant consumers data rights, such as the right to access, correct & delete personal information. Businesses must facilitate the exercise of these rights by consumers.
Both CCPA & GDPR have data protection requirements that businesses must comply with to ensure that individuals’ personal data is protected.
Similarities between the two regulations:
CCPA & GDPR both require businesses to provide notice & obtain valid consent before collecting or processing personal data & to provide individuals with the right to access & control their personal data. However, GDPR has more stringent requirements for obtaining valid consent & requires businesses to appoint a data protection officer. CCPA grants individuals the right to opt-out of the sale of their personal information & to request deletion of personal information, which are not explicitly stated under GDPR. CCPA applies to businesses in or conducting business in California, while GDPR applies to businesses processing personal data of individuals located in the European Union, regardless of the business’s location.
Enforcement & Penalties
Both CCPA & GDPR have provisions for enforcement & penalties for non-compliance.
The GDPR is enforced by the national data protection authorities in EU member states, who can issue monetary penalties that can go up to 4% of a company’s global annual turnover or €20 million, whichever is higher.
The CCPA, on the other hand, is enforced by the Attorney General of California through monetary penalties with a maximum of $2,500 per violation & up to $7,500 for international violations.
The fines for GDPR violations are determined by the nature, gravity & duration of the infringement, with the highest fine issued so far being €50 million by the French data protection authority CNIL. In contrast, the enforcement of CCPA violations is assessed & issued through civil actions by the Attorney General of California.
Conclusion
In conclusion, compliance with the California Consumer Privacy Act [CCPA] & General Data Protection Regulation [GDPR] is crucial for businesses that collect & process personal information. The CCPA is one of the most comprehensive privacy laws in the United States & non-compliance can result in significant financial & reputational harm, including statutory damages & legal action. Similarly, non-compliance with GDPR can result in significant financial penalties & reputational damage for businesses.
Both regulations share similarities in terms of individual rights, transparency, data breach notifications & consent. Compliance with CCPA is mandatory for businesses that meet specific thresholds, regardless of their location. Similarly, GDPR applies to all organisations that process personal data of EU citizens, irrespective of where the organisation is based. Therefore, businesses must take appropriate measures to comply with these regulations & protect individuals’ privacy & personal data.
FAQs
What are the important differences between CCPA & GDPR?
CCPA regulates personal data of California residents, while GDPR protects personal data of EU citizens. CCPA applies to California businesses, while GDPR applies to all organisations processing EU citizen data. Both give data rights to individuals, but have differences in implementation & scope.
Who needs to comply with the CCPA & GDPR?
The CCPA applies to for-profit businesses that collect & process the personal information of California residents, while the GDPR applies to businesses that process personal data of individuals located in the European Union, regardless of where the business is located. In general, both regulations apply to businesses that meet certain criteria for size & volume of data processing activities.
How are GDPR & CCPA similar?
GDPR & CCPA share similarities in protecting privacy rights, applying to companies collecting personal data, providing individuals with access to their data, disclosing data collection & purpose & imposing significant fines for non-compliance.
How CCPA & GDPR compliance can fuel your startup’s growth?
Compliance with CCPA & GDPR can benefit startups in multiple ways: building customer trust, avoiding legal penalties, staying ahead of competitors & expanding into new markets with similar laws.
