An overview of the CCPA set to go into effect January 1 and the confusion surrounding it due to its technical complexity and rushed timeline. (Sam Dean / Los Angeles Times)

The California Consumer Privacy Act will become effective on January 1, 2020, and will bring about sweeping changes in how companies treat consumer data. The act requires companies that collect personal information from California residents to notify consumers about how their data is being used and allows them to choose whether to share their data with third parties. But due to the rushed timeline of the law, many consumers need clarification on the act’s complexity and have yet to grasp what it means.

What Is the CCPA?  

If you use a mobile phone or computer to do your banking, shop, or pay bills, you’re subject to the California Consumer Privacy Act (CCPA). The law applies if you reside in California and are at least 13 years old. Under the new law, consumers must consent to share their personal information with businesses. Companies are also prohibited from using their personal information without permission unless permitted by law. Additionally, under the CCPA, companies cannot contact a consumer via email or text with marketing messages without prior written consent.

How does CCPA set to go into effect on January 1? 

The California Consumer Privacy Act (CCPA) will go into effect on January 1, 2020, requiring companies to gain customers’ permission before collecting their data. Under the act, businesses must disclose what personal data they gather, how long they retain it, and whether they admit it to third parties. Companies cannot share private data unless customers agree to it. For example, if a business sells products online, customers must obtain express consent to collect their names, email addresses, phone numbers, and credit card numbers before selling the information to third parties. It applies to any California company with annual gross revenue of $25 million and collects personal information from California residents. Check out this infographic for more details on what this means for your business.

Why does CCPA  create confusion due to its technical complexity and rushed timeline?  

Although the California Consumer Privacy Act of 2018 (CCPA) was signed into law by Governor Jerry Brown on September 28, 2018, many people still don’t understand the new law and its scope. Many believe that the CCPA only applies to websites collecting data via user cookies and does not affect third-party apps consumers use on a smartphone, tablet, or computer. As a result, many business owners and entrepreneurs have no clue if their company must comply with the new law. The California Consumer Privacy Act of 2018 (CCPA) defines several terms that all companies must understand to make the right decisions and comply with the law. These terms include “data,” “personal information,”

Conclusion 

In conclusion, the consumer privacy community was right about many things. The general public is very concerned that they share too much personal information online and that the industry is making too much money off that sharing. However, it wasn’t right to assume that the existing laws were adequate. Many companies violate the CCPA because they don’t know they must obtain consent before sharing sensitive information. They are scrambling to determine how to comply while maintaining good customer service. They are doing their best to figure it out, and we will see many innovative new technologies created over the next few years as these companies develop ways to ensure compliance. The industry will also adapt quickly to this change in consumer expectations.

 FAQS 

1. What are the CCPA’s main goals? 

The main goals of the CCPA are to protect consumers from unfair credit practices and to ensure that credit card companies are transparent. 

2. How did the CCPA come about? 

The CCPA was created in 1974 after the Federal Trade Commission (FTC) issued a report called “Credit Practices That Cost Consumers Money.”

3. What does the CCPA do? 

The CCPA requires that credit card companies provide certain information to consumers. This includes • The amount of the credit limit on the account, • The finance charge, • The annual percentage rate (APR), • The date the account was opened • The address where payments are sent, and where the account is located.

4. How will the CCPA affect me? 

The CCPA will affect all consumers who have credit cards. The CCPA will also affect businesses that accept credit cards, such as restaurants and gas stations.