Virginia Consumer Data Protection Act Explained

two people standing outside a building with many security cameras.

What is the Virginia Consumer Data Protection Act?

In 2021, Virginia became the second U.S. state after California to enact a consumer data protection act, the Virginia Consumer Data Protection Act (VCDPA).

Like most modern privacy laws, the VCDPA is meant to provide consumers with comprehensive data privacy in a world where business models are becoming heavily reliant on data. To achieve this, it focuses on a few specific areas.

Here's a breakdown of what that means and how it impacts businesses.

Highlights

The Virginia Consumer Data Protection Act (VCDPA) is a law enacted to provide Virginians with rights over how their personal data is used by businesses. Enforced from 2023, it applies to entities conducting business in Virginia or processing substantial amounts of Virginians' data.
The act ensures state residents can access, control, correct, and delete their personal data, and opt out of data processing for targeted advertising, the sale of data, or significant profiling.
Companies are obliged to conduct data assessments, respect consumer rights, minimize data collection, protect sensitive data, prevent discrimination, maintain security measures, manage third-party relationships, and be transparent.
Businesses should implement systems and procedures, such as those offered by iDox.ai, to manage data responsibly and comply with the VCDPA, ensuring partnerships and third-party processes align with the regulations.

The Consumer Perspective

The VCDPA's consumer rights are designed to protect consumers from unfair or deceptive business practices. Consumers are clearly defined as state residents acting on behalf of themselves or their households – notably excluding individuals acting on behalf of companies, such as employees.

The law's provisions for consumers include the right to know what information is being collected about them, the right to have their personal information protected, the right to access their personal information, and the right to control how their personal information is used.

For instance, a shopper who frequents an online storefront can ask the site for a copy of the data it stores about them—or request that it be deleted entirely.

Consumers can also ask to opt out of having their data processed for targeted advertising, sale, or profiling. When covered users exercise their right to make requests under any of these provisions, covered businesses have to comply, which brings us to the next topic.

How the Law Impacts Businesses

According to the text of the VCDPA, its laws only apply to entities that:

Conduct business in the state, and
Control or process at least 100,000 consumers' personal data annually or at least 25,000 consumers' personal data if they make more than 50% of their gross revenue by selling such data.

Broadly speaking, businesses covered under the VCDPA are obligated to protect the consumer's personal data from misuse, unauthorized access, and disclosure. They're also responsible for providing accurate and complete information about their data collection and use practices, which includes supplying consumers with privacy policies.

We already mentioned that businesses have to comply with deletion requests and let consumers know what they're doing with their information.

As with most new laws, however, some edge cases might catch companies off-guard, even though the legislation itself is fairly succinct:

The VCDPA includes exemptions for private data already covered by other laws. For instance, if you're a medical device manufacturer that keeps patient information as per the Family Educational Rights and Privacy Act (FERPA) or Health Insurance Portability and Accountability Act (HIPAA), you'll need to comply with those laws' consumer protection tenets instead. Carve-outs also apply to nonprofits, educational institutions, state government agencies, certain regulated financial institutions, and those who collect data covered under the Children's Online Privacy Protection Act (COPPA).
Information that can identify personal devices without identifying the people who own or use them may be exempt. It's not clear, however, whether these rules were meant to cover common technologies like tracking cookies.
Companies that want to collect and use information don't get to have a free-for-all. They have to limit such activities to what's reasonably necessary for their use case and only collect data pertaining to it. Since this is somewhat imprecise, it's worth implementing safeguards – like tools that automatically alert you when you might need to ask a consumer for their consent.
The VCDPA makes security measures essential, requiring businesses to maintain such practices to stay compliant. In other words, you can't just say you're operating in a responsible, secure manner: You need to be able to prove it if challenged.

What Companies Need to Do to Comply With the Virginia Consumer Data Protection Act

Here are some of the key requirements for companies covered by the VCDPA:

Data Protection Assessment: Companies have to conduct data protection assessments of their processing activities, particularly for processing that presents a heightened risk of harm to consumers, such as processing personal data for targeted advertising, selling personal data, or processing sensitive data.
Consumer Rights: The VCDPA grants various rights to the consumer as a data subject, including the right to access their personal data, correct inaccuracies, delete personal data, obtain a copy of their data in a portable format, and opt out of the processing of personal data for targeted advertising, the sale of personal data, or profiling in furtherance of decisions that produce legal or similarly significant effects.
Data Minimization: Companies have to limit the collection of personal data to what is adequate, relevant, and necessary concerning the purposes for which the data is processed.
Consent for Sensitive Data: Express consent is required to process sensitive data, which includes data revealing racial or ethnic origin, religious beliefs, mental or physical health diagnosis, sexual orientation, citizenship or immigration status, biometric data for uniquely identifying a natural person, and personal data collected from a known child.
Non-Discrimination: Companies are not allowed to discriminate against consumers for exercising their rights under the VCDPA.
Security Practices: Organizations are required to establish and maintain reasonable administrative, technical, and physical data security practices to protect the confidentiality, integrity, and accessibility of personal data.
Third-Party Relationships: Companies need to ensure that their data processors are adhering to the VCDPA and have to enter into contracts that require processors to follow instructions, understand their duties and delete or return personal data upon the end of the service provided.
Transparency: The VCDPA requires that companies provide a clear and meaningful privacy notice that includes the categories of personal data processed, the purposes of processing, how consumers can exercise their rights, the categories of personal data that the company shares with third parties, and the categories of third parties that the company shares data with.
Data Protection Officer (DPO): Although not explicitly required by the VCDPA, appointing a DPO can help organizations monitor compliance, manage data protection strategies, and act as a point of contact for data subjects and regulators.
No Sell Provision: Companies are called upon to include a clear and conspicuous link on their homepage titled "Do Not Sell My Personal Data" if they sell personal data, allowing consumers to opt-out.

Frequently Asked Questions

Does the VCDPA Apply in a Commercial or Employment Context?

The VCDPA focuses on the rights of consumers regarding the processing of personal data by businesses, meaning that it applies to a commercial context. Employees notably aren’t covered by the VCDPA, and their rights are regulated by other personal data protection laws.

Does the Protection of Genetic or Biometric Data Fall Under the VCDPA?

Yes, the VCDPA classifies biometric data as a type of "sensitive data," which is afforded additional protection under the act.

How Does the VCDPA Discern Between a Processor and a Controller?

A controller is a legal or natural person who, alone or jointly with others, determines the purpose and means of processing personal data. The controller decides the extent to which the processor is allowed to process personal data relating to the organization’s purpose. Meanwhile, the processor is the person processing personal data on behalf of the controller.

The Final Takeaway for Covered Companies

Not knowing that your business practices might be covered under the VCDPA doesn't let you off the hook. If you operate in Virginia or serve consumers from the state, it's critical to have systems in place that help you toe the line. For instance, you might use software tools to find personally identifiable information in scanned documents and communications to make compliance easier.

One area where companies commonly trip up is when they work with third-party processors. Shifting the blame isn't a valid legal defense against a VCDPA claim. You're responsible for ensuring that your partners and business systems also comply with the rules.

iDox.ai makes it easier to protect your consumers and your enterprise. By using SOC 2-compliant, ISO 27001-certified AI technology to find personal information, redact documents, and keep you on top of your security stance, iDox.ai powers business practices that meet legal requirements with fewer operational burdens.

Reach out to iDox.ai today to learn how to keep your enterprise ready for the privacy-oriented legal landscape.

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At the same time, it’s worth noting that the very definition of PII itself is growing and changing. Most people would think it’s obvious, for example, that they should treat a Social Security number as being highly sensitive. Other data elements are not as clear-cut. Let’s take the California Consumer Privacy Act (CCPA). Its definition of personal information is broad. It includes any data that someone might be able to associate with an individual. It does this without explicitly stating which data points we should consider as being personal. How Can Enterprises Defend Themselves Against Lawsuits? Regulatory bodies worldwide don't share a common understanding of PII. Therefore, companies should establish their own definitions, which should relate to the norms of the geographical regions where they operate. Organizations need to carefully and consistently adhere to those definitions. That should be with the right levels of protection, monitoring, and training. This acts as evidence that an organization has been proactive. They’ll have been addressing data privacy issues with policies and procedures. This can make a big difference in court compared with a company or enterprise that has nothing in place at all. The Power of the Consumer Consumers are changing the way they make key decisions about which organizations they want to do business with. They can base these on factors that go a lot further than quality and price. Some prefer companies that reflect their own values around social or environmental issues, for example. Data privacy considerations are fast becoming a key consideration, too. At the same time, more businesses are realizing other benefits of data adherence. They recognize that it is essential for maintaining a good public presence and reputation. The Growth and Spread of Data Protection Laws Data privacy regulations are going to become more prevalent. They’re spreading state by state in the U.S. On top of that, they’re likely to be more far-reaching and yet be more punitive for anyone in violation of them. At least a dozen states, including New York and Washington, are developing new regulations. Some requirements are likely to overlap with the big guns like the GDPR and CCPA. Others will not. That’s going to create even more compliance headaches for the organizations affected. Nevada has already introduced its own data privacy rules. Its law is a little narrower compared to California's. It mainly expands on existing requirements and exempts businesses that already had to comply with the Health Insurance Portability and Accountability Act (HIPAA) or the financial industry's Gramm- Leach-Bliley Act (GLBA). California voters have now approved another privacy law, the California Privacy Rights Act (CPRA). The plan took effect in 2023 and considered aspects of data privacy from the previous year. It expanded and amended some of the requirements contained in the CCPA. That includes creating a new category of personal information. Sensitive Personal Information is the name for it. It also establishes a brand new privacy regulator known as the California Privacy Protection Agency. Companies need to proactively address their treatment and handling of consumer data globally. If not, they’re asking for trouble in the future. Being well-prepared includes: Understanding the location of sensitive data Establishing the value of that data to the business Putting policies in place to reflect organizational and regulatory priorities You might be holding out hope for new federal laws that could effectively suck up aspects of all the different state rules. Even if there was federal legislation that could preempt the multiple state laws, it could take years to create. It would not be likely to happen in the foreseeable future. The Verdict: A Greater Understanding of Data Compliance Having processes in place to deal with the wave of new data compliance regulations makes business sense. Part of the solution lies in the digital technology that has brought about the sea change in data protection laws. Using smart technology to scan your documents for PII is one concrete way to help ensure data compliance for you and your business. iDox.ai can do this for you and much, much more. Incorporate iDox.ai into your data compliance strategy today. Get in touch with us now to find out how we can help you with all your data compliance issues.

Jan 24, 2022

What Is the 2024 CCPA Compliance Checklist?

Understanding the 2024 CCPA Compliance Checklist: What You Need to Know The Californian Consumer Privacy Act (CCPA) was enacted in 2018 in response to growing concerns about privacy, data security, and consumer rights. It aims to enhance privacy protections for Californian residents by giving them more control over their personal information, including its collection, use, and deletion. Simultaneously, this puts website owners in a precarious position regarding compliance. So, while you may know these consumer rights, you may have no idea how to respect them. This article contains a comprehensive CCPA compliance checklist to help you stay ahead of data privacy laws. 2024 CCPA Compliance Checklist Honoring consumer rights should be easier with a comprehensive CCPA compliance checklist. Here are the items you must consider for effective CCPA compliance . 1. Determine Applicability of the CCPA to Your Business The CCPA applies to your business if it is a for-profit entity in California. Non-profit businesses aren’t covered. For your business to fall under the CCPA rules, it should meet the following criteria: It should have annual gross revenues of at least $25 million; It must hold the personal information of at least 50,000 people for commercial purposes. It should derive at least 50% of annual revenue from the sale of consumer personal data. 2. Identify and Classify Data If CCPA regulations apply to you, carry out data inventory and mapping to determine the types of data you collect, its sources, the purpose of collection, and the entities you share with. Details may include: Names IP addresses addresses Purchase history Browsing history, etc. 3. Prepare a Compliant Privacy Policy Prepare and publish a privacy policy that complies with the CCPA. In the policy, explain how you collect, share, and sell consumer information. Also, outline the CCPA consumer rights. Update the policy annually to stay current with the CCPA. 4. Establish Consumer Request Mechanisms CCPA rules allow consumers to request access to their personal information. Once a consumer requests it, you should provide the data within 45 days. You can make it easier by establishing mechanisms such as the following: ● Toll-free numbers ● Online portals ● A reliable email address You also need to establish a clear process for receiving consumer inquiries or for them to opt out of your program to sell their data. For example, you could have a checkbox or link titled: “ Do Not Sell My Personal Data .” 5. Establish a Reliable Data Security System The CCPA mandates businesses to protect consumer’s personal information and mitigate the risk of any potential data breach. But you can only do so by creating sufficient data protection and security systems. At the very top of the list, implement the following: Data encryption Multi-factor authentication Regular system audits A response plan to data breaches 6. Maintain a Data Inventory of Processing History While explaining to customers how you collect data and its purposes is important, you should have a clear record of the collected data and how you have used or processed it. Maintain a data inventory by identifying the sources and locations of storage for all personal data and document details like data type, retention period, and purpose. Review and update the inventory to comply with any changes in the CCPA regulations. 7. Create a Data Collection Notice Before collecting personal information, inform consumers of your intentions to collect it. Include details such as the types of information you need and the reasons for collecting it. If you intend to sell the information, provide a “ Do Not Sell ” checkbox or link for the customer to opt out easily. 8. Provide Easy Data Deletion Procedures At some point, your customers may want to delete their personal data. As part of your CCPA compliance checklist, you should make it easy for customers to request its deletion. If you do not do so, you could face serious legal challenges. Besides a mechanism allowing customers to request data deletion, implement measures to identify data for an individual customer and delete it as requested. 9. Ensure Third-Party Compliance Since you’ll share personal data with third parties, ensure they comply with the CCPA’s information protection policies. Implement a system to audit third-party businesses for ongoing compliance with CCPA rules. Understanding the California Consumer Privacy Act (CCPA)? The CCPA empowers California consumers with greater control over the personal data collected by businesses. Here are its key provisions: 1. Right to Know California residents can request businesses to disclose: The categories and specific pieces of personal information collected about them; The sources of that personal information; The purposes for which the business uses the information; The categories of third parties with whom the business shares the sensitive data; The categories of information the business sells or discloses to third parties. The right to access their personal information free of charge. The right to move their private data wherever they want. The right to know the financial incentives for collecting, selling, or deleting personal data. 2. Right to Delete Under the CCPA, Californian customers can request businesses delete their personal information. Businesses must verify their identity to prevent unauthorized requests and promptly delete the specified personal information when they receive a valid request. They also have to notify any service providers or third parties with whom they shared the data to delete it. Finally, they must maintain records of customer requests and their responses for at least 24 months. Exceptions apply in the following cases: Necessary for Transactions: Businesses aren’t required to delete personal information if it’s necessary to complete a transaction or provide a service requested by the consumer. For example, if you have an active account with an online retailer, they may retain your information to process orders. Legal Obligations: Businesses can retain personal information if it’s necessary to comply with legal obligations, such as tax records or fraud prevention. Research or Public Interest: Data used for research purposes or the public interest may be exempt from deletion. 3. Right to Opt-Out As a California resident, you have the right to request that businesses stop selling or sharing your personal information. Businesses must provide a clear link on their homepage that allows consumers to exercise this right, with anchors such as “ Do Not Sell or Share My Personal Information ” or “Limit the Use of My Sensitive Personal Information.” If you opt-out, you must re-authorize a business to sell or share your consumer data. However, the CCPA does not prevent businesses from using the data within their organization, even across different business units. It specifically addresses the sale or sharing of personal information with external parties. Note that the California Privacy Rights Act (CPRA), which amends the CCPA, now gives consumers the right to correct inaccurate information or limit the use of personal information. 4. Right to Non-Discrimination The CCPA explicitly prohibits businesses from treating consumers differently or discriminating against them based on their exercise of CCPA rights. In other words, they cannot penalize you by denying services, charging a higher price, or providing a lower quality of service. This doesn’t mean that businesses must always provide services for free; they can still charge reasonable fees related to the value of the service provided. In addition, if businesses offer loyalty programs or financial incentives, they must be clearly disclosed and not disadvantageous to consumers who exercise their rights. The California Attorney General’s Office investigates complaints related to non-discrimination. Consumers can file complaints if they believe a business discriminates against them. Easily Achieve CCPA Compliance with iDox.ai CCPA compliance can be challenging to achieve manually and on your own. The easiest way to comply with CCPA rules and regulations is through technology. Data discovery platforms like iDox.ai can help you better understand your data and manage it more effectively. Using our technology, you can easily discover, redact, and eliminate liable, sensitive information inside your data ecosystem. Thus, you can take control of and protect sensitive information in all files promptly. Contact us to get started today !

Nov 14, 2023

What Is SOX Reporting? Everything You Need to Know

What Is SOX Reporting: 6 SOX Report Best Practices When your company decides to go public, adherence to the Sarbanes-Oxley Act of 2002 (SOX) is mandatory. SOX came into force in the aftermath of high-profile corporate financial scandals, introducing rigorous standards to restore trust in financial markets. One of the key SOX requirements revolves around reporting. The goal of SOX reporting is to ensure accurate, transparent financial reporting, holding companies to a higher standard of transparency, integrity, and accountability. The challenge for many, however, lies in navigating the complexities of SOX reporting. How does a company ensure it's on the right track? The answer lies in understanding and implementing SOX report best practices. Keep reading to learn what is SOX reporting and discover these best practices to ensure your company has a roadmap for navigating this essential regulatory landscape. Highlights SOX reporting ensures compliance with the Sarbanes-Oxley Act’s requirements for accurate and transparent financial reporting after various corporate scandals shook investor confidence. The two most critical sections of SOX are Section 302 (corporate responsibility for financial reports) and Section 404 (management assessment of internal controls). A public company’s CEO and CFO are personally responsible for handling a SOX audit. What is SOX Reporting? SOX reporting refers to the compliance and reporting obligations of companies under the Sarbanes-Oxley Act of 2002 (often abbreviated as SOX). This U.S. federal law was enacted in response to a series of high-profile financial scandals, including those at Enron, WorldCom, and Tyco. These scandals highlighted systemic issues with financial transparency, corporate governance, and the accountability of companies and their executives. In a bid to restore investor confidence and protect shareholders from the repercussions of corporate malfeasance, Sarbanes and Oxley drafted the act with the primary goal of improving corporate governance and accountability. The Act introduced stringent reforms to enhance financial disclosures from corporations and to prevent accounting fraud. SOX reporting, therefore, involves a company's demonstration of its adherence to the various provisions of the Sarbanes-Oxley Act. Any violations can lead to an investigation by the PCAOB (Public Company Accounting Oversight Board). SOX reporting is centered around two key sections of the Act: Section 302 and Section 404. Section 302 This pertains to " corporate responsibility for financial reports ." Under this section, senior corporate officers (typically the CEO and CFO) have to personally certify that the quarterly and annual financial reports filed with the Securities and Exchange Commission (SEC) are both accurate and complete. CEOs and CFOs need to evaluate the effectiveness of internal controls within 90 days before issuing the report. This evaluation determines whether the internal controls are sufficient to ensure the accurate and complete reporting of financial data. Section 404 This section relates to the " management assessment of internal controls ." It requires publicly traded companies to include in their annual reports a statement from management that acknowledges the management's responsibility for establishing and maintaining an adequate internal control structure and procedures for financial reporting. These internal controls are processes designed to ensure the reliability of the company's financial reporting and the preparation of its financial statements. In addition to the statement from management, Section 404 mandates that companies include an assessment of the effectiveness of their internal controls at the end of their fiscal year. What Are the Other SOX Compliance Requirements? Key compliance requirements of SOX other than Section 302 and Section 404 include: Certification of Financial Reports: The CEO and CFO have to certify that financial reports are accurate and complete. Enhanced Financial Disclosures: Companies need to provide enhanced disclosures in their financial statements, including off-balance-sheet transactions and the use of pro forma figures. Audit Committee Independence: The audit committee has to be composed of independent directors and is responsible for the oversight of the company’s external auditor. Independence of External Auditors: External auditors are prohibited from providing certain non-audit services to their audit clients to ensure the auditor's independence. Protection for Whistleblowers: SOX protects whistleblowers, protecting them from retaliation by their employers for providing information about fraud or violations of SEC rules. Criminal and Civil Penalties for Violations: Executives can face criminal penalties for falsifying financial statements and other violations of SOX. Management and Auditor Reports on Internal Controls: Annual reports have to include a section that assesses the effectiveness of the internal controls and procedures for financial reporting. Enhanced Reporting Requirements for Insider Transactions: Insiders have to report transactions involving company stock more quickly and disclose changes in the ownership of company stock. SOX Report Best Practices Here are six essential SOX report best practices: 1. Implement Robust Internal Controls Implementing robust internal controls is a cornerstone of SOX report best practices. They comprise the policies, procedures, and mechanisms designed to ensure that financial reporting is accurate, reliable, and compliant with SOX reporting requirements. These controls can safeguard against potential financial discrepancies. When you continuously review and update these controls, you can ensure they are aligned with current business practices, reducing the risk of material misstatements in your financial reports. 2. Maintain Continuous Documentation To ensure that you're always prepared for audits and to validate your adherence to SOX requirements, continuously document all financial processes and controls. This includes any changes made to them. By maintaining a comprehensive and updated record, you'll simplify the SOX reporting process and demonstrate a proactive approach to compliance. 3. Implement Regular Training Make sure that your employees, especially those directly involved in financial operations and SOX reporting, receive regular training. Regular training sessions and workshops can help keep the team updated about any changes to the Act, ensuring that your company remains compliant. 4. Embrace Automation Consider investing in SOX compliance software or tools. These technologies streamline the documentation, testing, and monitoring processes, making it easier for you to manage and track your compliance activities. Automation can also reduce human error, one of the potential risks in financial reporting. 5. Foster a Culture of Open Communication Encourage a work environment where employees feel safe to voice concerns or report potential discrepancies. Whistleblower policies , as mandated by SOX, should be robustly implemented to protect employees who raise alarms about potential financial misconduct or inconsistencies. By ensuring that channels of communication are open, you can detect and address issues before they escalate. 6. Engage in Continuous Monitoring Instead of treating SOX compliance as an annual event, shift your mindset to view it as an ongoing process. Continuously monitoring your controls and processes will help you identify and rectify potential weaknesses promptly. This proactive approach can save you from last-minute scrambles during the reporting period. Frequently Asked Questions What Is the Difference Between SOC and SOX Reporting? In summary, SOC ( System and Organization Controls ) reports focus on ensuring compliance with data security and privacy controls within service organizations, while SOX reporting focuses on internal controls over financial reporting. What Are the Four SOX Controls? A SOX compliance audit requires four key areas of focus when filing an internal control report. These are: Access Control IT Security Data Backup Change Management Who Is Responsible for SOX Reporting? Under the Sarbanes-Oxley Act, the chief executive officer (CEO), chief financial officer (CFO), and other similar executive roles with authority over a company’s financial records are considered personally responsible for handling reports on SOX internal controls. Ensure SOX Reporting Compliance with iDox.ai Navigating the intricacies of SOX compliance can be daunting for any organization. Yet, accurate financial reporting and stringent internal controls are non-negotiable in today's business landscape. With tools like iDox.ai , the path to compliance becomes more straightforward. This advanced data discovery platform ensures your financial reporting aligns with SOX requirements. It also offers mechanisms to manage key controls like access, duties segregation, and authorization workflows to ensure financial integrity. Contact us today and learn how our solution ensures a seamless SOX reporting compliance experience.

Nov 17, 2023

CCPA vs CPRA - Top Features and Differences

California's evolution from the CCPA to the CPRA in a matter of years goes to show the unpredictable nature of data privacy regulation at large. If you're familiar with either one, give this article a read. It goes into detail explaining each law, how they relate to one another, the differences between them, and the implications for businesses and consumers alike. What Is the CCPA? The CCPA, or California Consumer Privacy Act, was a first-of-its-kind piece of legislation first introduced by California's state government in 2018. The final version established local residents' rights with respect to how their personal information is collected, handled, and managed by businesses online. Spelled out, these include: ● The right to know what data companies collect from them and how that data is used. ● The right to request the deletion of personal data companies collect from them, with some exceptions. ● The ability to opt out of the sale or sharing of personal data. ● Protection against discrimination for exercising CCPA rights. What Is the CPRA? The CPRA, or California Privacy Rights Act for short, is a newer law that was approved by a public vote in November 2020. Intended to extend the original CCPA's level of protection, the framework's provisions gave citizens additional rights to correct any inaccurate personal data companies hold on them and the right to limit companies' use and disclosure of their sensitive personal data - more on these later. Comparing CCPA v CPRA Rules While the CCPA was already quite comprehensive, state lawmakers saw a need to update it in the face of evolving risks. With every year bringing more sophisticated data collection and usage techniques, it would only be a matter of time before the original framework's protections would become outdated. This newer version effectively replaced the first to give it the name most people refer to it by today – CCPA 2.0 or CPRA. The biggest differences between the CCPA and its successor, the CPRA, are as follows. More Consumer Rights The CPRA gave California residents additional control over the accuracy and disclosure of their personal data while also making slight changes to existing rights to opt out of third-party sales, to know, and to delete. It further established consumers' right to access information about any forms of automated decision-making technology businesses use to handle their personal information. Qualifying Criteria for Businesses Lawmakers adapted the criteria organizations need to meet in order to qualify for the law, effectively doubling the CCPA's original earning threshold for consumer data purchase, sale, and sharing activities to $100,000 per year. That adds some breathing room for smaller organizations that would otherwise qualify at $50,000. Protections for Highly Protected Data The California Privacy Rights Act outlines special protections for Sensitive Personal Information (SPI), including new purpose limitation requirements and updated disclosure requirements. GDPR Influences California's data privacy laws are often compared to those of the European Union, which is well-known for its equally extensive General Data Protection Regulation (GDPR). The two started out completely unique, but have since influenced one another in several ways. The CPRA notably adopted three characteristic GPPR concepts - data minimization, purpose limitation, and storage limitation - in its amendments. Legally Actionable Types of Data The CPRA expands consumers' ability to take legal action against companies who fail to protect their personal information, adding login credentials to the sensitive types of data that consumers can sue over. Privacy Enforcement Authority The CPRA created the California Privacy Protection Agency (CPPA), an independent state agency responsible for enforcing consumer data privacy rights. The CPPA has broad authority to conduct investigations, issue orders, and impose fines on companies that violate CPRA regulations. Conclusion The California Privacy Rights Act surpasses the CCPA in terms of comprehensiveness, adding several key components to its predecessor's framework and strengthening consumer data privacy rights across the state. Despite having only been effective since January 1st, 2023, the CPRA has already had a major influence on other U.S jurisdictions as they look to update and improve their own data privacy regulations. Stay ahead of compliance with iDox.ai Data Discovery platform. iDox.ai’s c omprehensive data discovery platform streamlines your CPRA compliance journey, enabling you to protect consumer rights, enhance data privacy, and maintain customer trust.

Nov 27, 2023