The California Privacy Rights Act (CPRA) went into effect January 1, 2023, and enforcement will start on July 1, 2023. The CPRA represents both a clarification and enlargement of the original California Consumer Privacy Act (CCPA); together, they’ll constitute the strictest privacy laws in the country. New Data Privacy Legislation.
So what does that mean for your business? For one, if your marketing strategy is in danger of non-compliance and you do any business (including online sales) in the state of California, you ne to move privacy to the top of your priority list.
Before we go further, please note that content on this blog should be consider reporting and/or opinion, NOT legal advice. Consult your legal department on all decisions around compliance.
You’re probably aware of a flurry of chang deadlines and adjust schules around CPRA that were announc at the end of 2022, but they don’t change the previously establish calendar for enforcement. So let’s get down to business.
The CPRA was a ballot measure that came into being because there were grey areas in the original CCPA that left many questions unanswer, particularly around defining personally identifiable information (PII) and different types of data collection.
California privacy legislation timeline
Like CPRA, all of these state laws have provisions for consumer rights, as well as their own interpretations of what constitutes sensitive personal information. But it’s very important to know that they are all different. There is no one-size-fits-all solution to privacy compliance across states.
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That’s where your legal department comes in. You ne to set up regular communication with your legal team to stay ahead of new rules and regulations that may impact your business this year and in the future.
While CPRA is already in effect, the final rules bas on modifi regulations won’t be releas until sometime in April 2023 following a brief delay by the California Privacy Protection Agency (CPPA).
Soe of the changes under CPRA include strengthening limits on data sharing and providing clearer guidance on how marketers can use what the law defines as “potentially sensitive” personal information, including:
One of the biggest debates that l to
CPRA was the ambiguous language of CCPA’s “Do Not Sell” requirement. Under the new law, businesses now have to let consumers opt out of both selling and sharing their information with a mandatory “Do Not Sell or Share My Information” option on their websites.
If you are sharing data with a third party that wasn’t originally authoriz, you are requir by law to allow users to opt out. There are two parts to consider:
anything that is automatically tracking users
While the current regulations are being finaliz, you can expect additional regulations in the future. Section 1798.185 of the CPRA authorizes the CPPA to “solicit broad public participation and adopt regulations to further the purposes of this title (the CPRA).” That offers broad leeway for additional rules and restrictions, ranging from adding new categories of personal information relat to data privacy to establishing new procures relat to the sharing of personal information and opting out of the sale of personal data.
Compar to the laws going into effect in the other four states, California offers the most legal protections for consumer data privacy by far. But remember: compliance in California does not automatically mean compliance elsewhere.
what to expect from CPRA enforcement
Under CCPA, enforcement remain a big question mark, but expect California to turn up the heat with CPRA. The $1.2 million fine dealt to Sephora for violating CCPA in 2022 should serve as a warning shot for brands that thought they could skate by.
In case you weren’t sure if California advantages of combining seo and sem positioning was serious, the establishment of the CPPA should be a clear sign; they will be taking over from the California Attorney General (AG) to oversee compliance, future rules, and penalties for law violations.
It’s less certain how enforcement will play out in the four states where legislation is going into effect for the first time; what we do know is that both enforcement and penalties will be different in each state. Whether in California or elsewhere, there will be consequences for violations that can hurt your business financially and put your reputation with your customers at risk.
How to work with your legal team
What brands can do now is act as if final regulations and enforcement are already in place. If you are not sure what that means, get in touch with your legal team and look for ways you can work together to make sure your business is compliant.
There are a couple of ways you can get start on that work with your legal team. Map your data silos: Even organizations with refin data management and storage processes may find some data is silo within their organization. It’s critical to develop a comprehensive map defining what data is being stor, where it’s being stor, and the purpose of the silo. Ideally, you would look to break down these silos, but the first step is figuring out where the data is.
Provide comprehensive use case information
Legal teams will often look to completely block singapore number data flows if they could create risk for the organization. In the absence of context, for example, legal teams may advise their teams to enable Restrict Data Processing in a Google Ads account.
That would actually apply to all residents subject to regional data laws, not just those who have exercis their right to opt out. While this approach might provide absolute legal protection, it will also impact marketing efficacy (and this is something that brands will ne to understand in order to determine the right balance between these trade-offs.
It’s also critical for legal teams to maintain a complete line of sight so they are able to maintain a comprehensive and up-to-date privacy policy on your website reflecting the nature of how this data is us today (a lot can change in just a few months!)
Calculate the estimat impact of compliance measures
If you are blocking all tracking for consumers in a given region, calculate the estimat scope of coverage and provide various scenarios of efficiency loss. For example, if you have 100,000 customers annually and 12% of them are bas in California, you could use your existing cost-per-acquisition (CPA) data to showcase the impact of mia efficiency declining by 10% or 20% or more.
That might happen because CPAs increase or customer acquisition declines. You can use your work to help your teams understand the scale of fiscal impact when implementing universal opt-outs. Because it’s difficult to actually estimate that impact in advance, these scal examples will make other organization leaders more likely to pay attention and work with you and your legal team to find a viable solution that ensures consumers are able to exercise their rights while mitigating fiscal risk to the brand’s bottom line.
