The California Privacy Rights Act (CPRA), an amendment to the California Consumer Privacy Act of 2018 (CCPA), went into effect on January 1, 2023—and businesses are already shuddering at the thought of a potential audit. Here’s what you need to know about CPRA compliance.
Complying with California’s new rules for storing, gathering, and processing consumer data is a real doozy. Even the big dogs are facing data privacy blunders that come with a hefty price tag. So it’s no wonder small businesses are still struggling to understand how the law applies to them, and how to ensure CPRA compliance.
How CPRA-compliant privacy documents protect your business
If you made over $25 million in revenue last year and have even one employee in California, the CPRA applies to you—and having CCPA/CPRA-compliant privacy documentation is absolutely essential. Here are a few reasons why:
- Prove compliance. If you’re audited, these documents help prove and time-stamp your compliance, which could save you from the potentially severe consequences of non-compliance.
- Avoid hefty fines. With fines starting at $2,500 for each violation or $7,500 for each intentional violation, CCPA/CPRA-compliant privacy documentation could literally save your business from devastation.
- Clarify processes. A CPRA-compliant data handling policy is important for controllers and processors to ensure that every department is on the same page when it comes to handling consumers’ personal information.
- Protect your reputation. By creating an airtight CPRA-compliant data handling policy, you’ll protect your business’s reputation and avoid negative press that comes as a result of CPRA violations.
CCPA vs. CPRA: what’s changed?
There’s no getting around it: the CPRA is complicated. The new law makes changes to covered businesses, clarifies the definition of Personal Information (PI), and transfers enforcement authority from the Attorney General to the California Privacy Protection Agency.
It requires businesses to take additional measures to protect consumer data, and gives consumers new rights—including the right to correct inaccurate PI, and the right to limit use and disclosure of sensitive PI.
According to the CPRA, sensitive PI is broadly defined and includes social security numbers, driver’s licenses, state ID cards, passport numbers, precise geolocation data, contents of certain emails and text messages, and more.
These changes have a significant impact on compliance. So even if you’re already CCPA compliant, you’ll still need to make changes to adapt to the CPRA.
What is a CPRA-compliant data handling policy?
A CPRA-compliant data handling policy is an internal document, meaning it should be made available to individuals within your company, rather than publishing it for your customers. The document is designed to inform your employees how your company will handle Personal Information.
The policy should include specific provisions related to data minimization, data retention, and privacy risk assessments:
- Data minimization: the CPRA requires businesses to take data minimization principles into account when establishing their privacy practices. This means businesses must limit their collection, use, and sharing of data to that which is relevant, adequate, and necessary.
- Data retention: in order to minimize consumer privacy risks, companies must create data retention policies to ensure that data is only stored for as long as necessary.
- Privacy risk assessments: businesses are required to conduct risk assessments anytime they process Personal Information in a manner that poses a significant risk to consumer privacy or security. Businesses must then send the completed assessment(s) to the California Privacy Protection Agency (CPPA).
Write your CPRA-compliant data handling policy in minutes with SixFifty
Don’t risk CCPA/CPRA non-compliance. Though the new regulations are difficult to understand, SixFifty will hold your hand through the process. Our CCPA/CPRA compliance tools support your company’s dealings with California residents and employees so you can steer clear of fines, penalties, and the reputation damage that comes from non-compliance.
SixFifty’s California Privacy toolset will act as a legal compass to help your business stay compliant with all the latest regulations. Just answer a series of simple questions to generate your custom CPRA data handling policy, then get back to business.
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