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Published on May 3, 2021 AUTHOR - PRIVACY RESEARCH TEAM
Privacy regulations drive organizations to be responsible custodians of their consumers' data. California Consumer Privacy Act (CCPA), recently amended by the California Privacy Rights Act (CPRA) 2020 - requires organizations to follow CCPA guidelines when dealing with California residents’ data. In this blog, we will discuss data collection techniques compliant with CCPA.
Before the CCPA was drafted, the GDPR was already in effect, and big organizations such as Facebook and Google faced billions in fines due to non-compliance. Experts believe that the adoption of the GDPR by multinational corporations was, therefore, easier than the CCPA as organizations had already spent a lot of money and effort in building privacy programs geared towards GDPR compliance and then tried to adapt those to also comply with the CCPA.
The CCPA was also the first legislation in the US that gave consumers more control over how companies collected and used their personal data. Due to the economic landscape of the State of California and the presence of most of the internet industry in Silicon Valley, the CCPA was catapulted into prominence since it not only affected the entire US economy but had an almost global effect.
Mr. Reece Hirsch, co-head of Morgan Lewis’ privacy and cybersecurity practice, says “If you thought the GDPR was bumpy, the CCPA is going to be a real roller coaster”.
Xavier Becerra, California Attorney General, says, ”Even though widespread enforcement of the CCPA isn’t likely until July, companies should not view the first six months of the year as a grace period. We’re going to try to help folks understand our interpretation of the law”.
Following are some of the aspects that impacted businesses under the CCPA:
The CCPA has sent shockwaves across the entire data privacy landscape and in order to stay in compliance, organizations are going to need a specific tool which can help them perform all CCPA requirements swiftly and with ease. We will talk about this solution further in the article, but let's first see what the CCPA entails.
About 40 million consumers who are provided rights under the CCPA. These rights include:
1. Right to awareness:
Covered entities are required to disclose the personal data collected, sold, shared, or disclosed about consumers for a business or commercial purpose and inform all consumers about their rights under the CCPA and the method to exercise those rights in their privacy policy.
2, Right to be provided notice at the point of collection:
It is also essential for organizations to inform consumers of the categories of data collected and the purpose of processing at or before the time of collection.
3. Right to access:
Organizations are required to provide individuals with access to their information upon receipt of a verified request.
4. Right to deletion:
Organizations are obligated to delete an individual's personal data upon request. In case this data is shared with third-party vendors, the data held in those systems needs to be deleted as well.
5. Right to Opt-out:
Organizations need to provide consumers with the ability to opt-out of the sale of their personal data by providing easy-to-use and prominent links titled "Do Not Sell My Information" on their website. An organization cannot ask a consumer to opt back into the sale of their personal data for at least a 12 month period from the exercise of opt-out and a third party which bought the personal data of the consumer must provide an opportunity for the consumer to opt-out before further selling that personal data to another party.
6. Right to not be discriminated:
A company covered under the CCPA cannot discriminate against an individual who exercises their CCPA rights.
7. Right to Sell:
Organizations are allowed to offer financial incentives to consumers, for the sale/collection of their personal information. Consumers should at all times be able to revoke this permission and request deletion of all previously collected or sold confidential information.
8. Right to Opt-in:
Personal Data containing minors' personal information cannot be sold by a business unless the minor (age of 13 to 16 years) or the Parent/Guardian (if the minor is aged below 13 years) opt-in to allow this sale. Organizations can be held responsible for the sale of minors' personal information if they either knew or willfully disregarded the consumer's status as a minor and the minor or Parent/Guardian had not willingly opted in.
9. Right to multiple request mechanisms:
Businesses must provide consumers with a minimum of two designated methods/channels for submission of consumer requests for personal information disclosure, including a toll-free number. Companies that exclusively operate online and have a direct relationship with their consumers may provide an email.
One very important requirement under the CCPA is the notice that has to be provided to consumers at the point of CCPA collection of their personal data - Organizations cannot collect personal data unless they provide consumers this notice. If the business intends to collect additional categories of personal information, the business shall provide a new notice at the point of collection.
Described in detail in the CCPA the notice should must be conspicuous and easy to understand and it must be made available at or before the point of collection of personal data:
Manual methods make it virtually impossible for organizations to offer a notice at the point of data collection and then keep track of all the notices sent out. It is advised that organizations should have a single solution that can manage all these data collection requirements to make the process smoother.
The notice at or before the point of collection should have the following information:
The CCPA requires organizations to have a clear privacy policy to ensure compliance. Organizations are required to update their Privacy Policy at least every 12 months to ensure that it is current. In case a material change has been made, the organization is required to provide an update notice of these changes to the consumer.
Following are the key requirements of a CCPA compliant privacy policy:
Organizations complying with the CCPA data collection must allow consumers to opt-out of the sale of their personal data by adding a “Do Not Sell My Personal Information,” link on their website. This should enable users to opt-out of the sale of their data. This link should be simple to read and understandable for consumers.
Once a customer has opted out, organizations need to make sure the following steps are met:
Keeping track of consent can be a tedious process that is tedious and time-consuming if done via manual methods. Organizations need a solution that can keep track of all this data and catalog them as per their category and nature, in order to streamline their processes.
The CCPA is a difficult law to comply with if your organization does not have the right tools to fulfill its requirements. In order to comply with ease, organizations need a data discovery tool that can help them keep track of all the data they collect and then act according to the regulation.
There are several functionalities that every solution should have if it aims to offer efficiency and compliance with global privacy regulations such as the CCPA. The evolving paradigm of data translates to better security practices and improved privacy for the consumer and organizations. Following are the functionalities that a CCPA Compliance tool needs to have.
The core of any smart data linking automation solution is artificial intelligence and machine learning. What this means is that machine learning and automation is paired with artificial intelligence to stitch ‘people data graphs’ to give a complete and holistic picture of when, where, why, and how personal information of customers were collected, stored, shared, and used. This helicopter-level visibility, so to speak, translates to time-saved sorting and linking personal data of consumers which can then be utilized for other operational processes.
Personal data linking with the help of artificial intelligence and robotics is already helping enterprises scale their DSR response times multiple folds with minimal cost increases. DSR fulfillment automation will mean that the steps taken and the man-hours put into fulfilling each data subject request are significantly cut down.
Privacy assessment can be simplified but it would require a system of record, a system of knowledge, a system of engagement, and a system of automation. These systems, when used effectively, can make it easier for stakeholders to collaborate and complete assessments, as well as share the reports with external parties under one secure platform.
Assessing vendors before partnering up is empirical to thrive in an era of strict data privacy regulations as even the smallest let up in controls, be it by a vendor, can severely dent an organization’s credibility. In order to alleviate the risk, a system of vendor assessment based on artificial intelligence and automation is necessary.
An effective consent management platform should offer the following:
Automatically link personal data with their owners in all structured and unstructured data systems. In complex unstructured data systems, data discovery tools can identify documents or files that contain an individual’s personal information.
A good data mapping solution supports the organization’s privacy compliance requirements by allowing it to collaboratively gain full visibility into the flow and control of personal data—not just within the organization but also outside its boundaries.
Securiti has designed a solution that offers organizations all the functionalities mentioned above. Securiti developed this solution to create the perfect data discovery tool. The Sensitive Data Intelligence solution by Securiti will enable organizations to deal with all requirements set by privacy regulations, stay compliant, and avoid fines and penalties. These solutions help towards compliance and customer trust with the security controls set in place for their data.
Organizations need to have a reliable and efficient data discovery framework if they hope to keep track of all their data stored while remaining compliant with privacy regulations. Stay compliant with CCPA collection requirements.
Visit Securiti to learn more about our solution and request a free demo today!
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View all solutionsThe California Consumer Privacy Act (CCPA) was signed into law on June 28, 2018 and is scheduled to come into effect on January 01, 2020. Often compared to GDPR, CCPA protects consumers from mismanagement of their personal data and gives the consumer control over what data is collected, processed, shared or sold.
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The California Privacy Rights Act (CPRA) will take effect from January 1, 2023, and will apply to personal information collected on or after January 1, 2022. Enforcement of the CPRA will start six months later (July 1, 2023). The CPRA builds upon the CCPA, strengthening user privacy for California residents.
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The EU General Data Protection Regulation (GDPR) came into effect on May 25, 2018 and changed the global privacy landscape. It has broadened the definition of processing activities and personal data, impacting companies worldwide, and has tightened the rules to obtain consent before processing information.
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The Lei Geral de Proteção de Dados (LGPD) is modeled with similarities to the General European Data Protection Regulation (GDPR) and contains sixty-five articles. It was approved on August 14, 2018 and its validity has undergone several changes, the last relevant fact being MPV 959. LGPD is in effect since September 18, 2020. The sanctions by the ANPD (Brazilian Data Protection Authority) were postponed to August 2021. The LGPD allows people have more rights over their data and expects organizations to comply with their regulations or face heavy penalties or fines.
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UAE have number of laws in place that govern privacy as well as data security in the UAE. Some of those includes:
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The government of New Zealand has recently replaced its long-existing Privacy Act of 1993 with a modernized version, the Privacy Act 2020. The New Zealand Privacy Act 2020 (NZPA) will take effect from December 1, 2020.
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The Personal Data Protection Act, B.E. 2562 (2019) ('PDPA') is Thailand's first consolidated data protection law, which was published in the Thai Government Gazette on 27 May 2019. This law was said to go into effect on 27 May 2020. However, in May 2020, the Thai Cabinet through a Royal Decree has deferred the enforcement of certain data protection provisions of the PDPA until 31 May 2021.
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In order to protect the data of individuals in South Africa, Parliament assented to the Protection of Personal Information Act (POPIA) on 19th November 2013. The commencement date of section 1, Part A of Chapter 5, section 112 and section 113 was 11 April 2014. The commencement date of the remaining sections (excluding section 110 and 114(4)) was 1st July 2020. As per the Regulator’s Operational Readiness Plan the Regulator will be able to take enforcement actions for the violation of POPIA by July 1st 2021.
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Singapore’s Personal Data Protection Act (PDPA) comprises various provisions governing the collection, disclosure, use, and care of personal data. It recognizes the rights of individuals to have more control over their personal data and the needs of organizations to collect, use, or disclose personal data for legitimate and reasonable purposes.
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The Canadian data laws aim to give consumers control over their data and promote greater transparency about how organizations use data containing personal identifiers.
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The Australian data laws aim to give consumers control over their data and promote greater transparency about how organizations use data containing personal identifiers.
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After the invalidation of Privacy Shield, many companies are relying on the SCCs in order to continue transferring data of EU citizens to companies based in countries who are not deemed adequate for data transfer.
After the CJEU judgement, it is clear that these companies have to conduct Risk Assessments with the data recipients in these countries in order to ensure they have enough controls to mitigate any potential data or regulatory risk.
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On January 31, 2020, the government of Saudi Arabia issued the Executive Regulations to the Saudi E-Commerce Law 2019 (“ECL”) that was in effect since October 2019. The Executive Regulations together with the ECL (“Law”) aim to protect consumers’ personal data by requiring organizations to take appropriate technical and administrative measures.
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Turkey was one of the first countries to start the trend of legislating data protection. Turkey published “Law on the Protection of Personal Data No. 6698 (LPPD) covering personal data protection on April 07, 2016.” The LPPD is based on the European Union Data Protection Directive 95/46/EC and has several similarities with the GDPR. It aims to give data subjects’ control over their personal data and outlines obligations that organizations and individuals dealing with personal data must comply with. The LPPD has also provided comprehensive guidelines for the transfer of personal data to the third parties.
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In December 2019, India, following several other countries' footsteps on the privacy laws' developments, introduced the Personal Data Protection Bill (PDPB) to regulate the processing, collection, and storage of personal data. However, in November 2021, the bill’s name was amended to now be called the Data Protection Bill 2021 (DPB).
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The Irish Data Protection Act, 2018 (Irish DPA) implements the General Data Protection Regulation (GDPR) and transposes the European Union Law Enforcement Directive in Ireland. Since it incorporates most of the provisions from the GDPR and the Law Enforcement Directive with limited additions and deletions as per the national law, it is considered to be the principal data protection legislation in Ireland.
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The Personal Data (Privacy) Ordinance (Cap. 486) as amended in 2012 (the “PDPO) is the primary legislation in Hong Kong which was enacted to protect the privacy of individuals’ personal data, and regulate the collection, holding, processing, disclosure, or use of personal data by the organizations.. The Data Protection Principles ( the “DPPs or DPP ''), which are contained in Schedule 1 to the PDPO, outline how entities should collect, handle, disclose, and use personal data.
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In 2012, the Philippines passed the comprehensive privacy law, Data Privacy Act 2012 Republic Act. No, 10173 (the "DPA"). The DPA recognizes the rights of individuals to have more control over their personal data while ensuring a free flow of information to promote innovation and growth.
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South Korea has a general law and several special laws that cover data protection and individuals' privacy. South Korea's data protection regime is considered one of the strictest data protection regimes owing to its notification requirements, opt-in consent, extensive data subject rights, mandatory data breach notifications, and heavy sanctions in case of non-compliance.
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The Act on the Protection of Personal Information (the "APPI'') regulates personal related information and applies to any Personal Information Controller (the “PIC''), that is a person or entity providing personal related information for use in business in Japan. The APPI also applies to the foreign PICs which handle personal information of data subjects (“principals”) in Japan for the purpose of supplying goods or services to those persons.
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Qatar is the first gulf country that has passed a national data privacy law and has paved the way for all other gulf countries to follow suit. In 2016, Qatar enacted Law no. 13 Concerning Personal Data Protection (the “DPL”). Qatar became the first Gulf Cooperation Council (GCC) member state to issue an “European Style” applicable data protection law. The DPL establishes a certain degree of personal data protection, provides data subject rights, and prescribes the guidelines for organizations for the processing of personal data within Qatar.
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Bahrain has become a part of the countries that have enacted a data privacy regulation to protect the rights of their residents. On 12 July 2018, Bahrain drafted its law on data protection regulation, Law No. 30. This then went on to go into effect on the 1st of August 2019 as the Bahrain Personal Data Protection Law (PDPL) and supersedes all other laws. The PDPL recognizes the rights of individuals to have more control over their personal data and the needs of organizations to collect, use, or disclose personal data for legitimate purposes.
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After the Success of the California Consumer Privacy Act (CCPA) in California, Virginia is now following the same path. The Virginia Consumer Data Protection Act (VCDPA) has been passed and will go into effect on 1st of January 2023. This law is closely designed after the newer California Privacy Rights Act (CPRA) but with a few significant and important differences.
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After the VCDPA in Virginia, Colorado has closely followed suit and has passed their own comprehensive data privacy law to protect the personal data of the residents of Colorado.The Colorado Privacy Act (CPA) was signed into law on the 8th of July, 2021 and has been modelled closely after the VCDPA.
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Saudi Arabia has drafted a data privacy regulation to protect the personal data of individuals in Saudi Arabia. This law was approved by the Council of Ministers in Saudi Arabia and is named the Personal Data Protection Law (the “PDPL”).
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Uganda’s Data Protection and Privacy Act 2019 seeks to protect Uganda’s citizens and their personal data by outlining and implementing rules for processing personal data and sensitive personal data by entities within or outside the country.
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Ghana Data Protection Act 2012 establishes a comprehensive set of provisions governing the collection, processing, use, and protection of personal data by the data controller or data processor.
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Kenya’s Data Protection Act, 2019 (DPA) is based on the framework of the EU’s General Data Protection Regulation (GDPR), making it the third region in East Africa to have enacted and enforced data protection regulations.
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Malaysia’s Personal Data Protection Act (PDPA) was passed by the Parliament of Malaysia on 2 June 2010. The PDPA sets out a complete cross-sectoral framework to protect the personal data of individuals with respect to commercial transactions.
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Although there is no comprehensive data protection law in Indonesia, however, there are several regulations that regulate the Indonesia's draft Personal Data Protection Bill (PDPB) & Personal Data Protection Regulations (PDP Regulations)
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Oman’s Personal Data Protection Law (Oman’s PDPL) has been published in the country’s official gazette, and it will come into force by February 9, 2023, one year after its issuance which was February 9, 2022. The law applies to any natural person’s personal data including but not limited to their name, location data, identification number, and health-related information.
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Kuwait’s Data Privacy Protection Regulations (DPPR) applies to all public and private Telecommunication Services Providers and related industry sectors who collect, process, and store personal data and user-related content in whole or in part of a data storage system, whether processed inside or outside the State of Kuwait.
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The Personal Data Protection Act (PDPA) protects Sri Lankan residents’ data while regulating how organizations collect, process, store, and maintain this data. The PDPA also grants users a wide range of data subject rights, meant to give them more control over their data.
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Issued on 27 July 2006, the Russian Federal Law on Personal Data (No. 152-FZ) remains one of the oldest data protection laws in effect today. Moreover, it is one of the few laws enacted before the EU's landmark General Data Protection Regulation (GDPR).
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Germany’s Bundesdatenschutzgesetz (BDSG) in German, or the Federal Data Protection Act in English, was enacted in May 2018 to implement the GDPR in Germany.
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The Data Protection Act (DPA) of 2018 was passed in April 2016 and came into effect on May 25, 2018. This was the same day the General Data Protection Regulation (GDPR) came into effect.
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Directive 2002/58/EC on Privacy and Electronic Communications, known more prominently as the ePrivacy Directive, is a key set of instructions released to ensure the privacy and confidentiality of all electronic communications within the European Union (EU).
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The New York State Department of Financial Service Cybersecurity Regulations or 23 NYCRR 500 is a set of 23 cybersecurity requirements mandatory for all financial institutions registered in New York working under its Banking Law, Insurance Law, or Financial Services Law.
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