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For more information about the California Privacy Rights Act (CPRA) and how to kickstart your CPRA compliance program, see our CPRA Compliance Checklist here and download our white paper on 7 Essential Tips to Prepare for the CPRA.
When the European Union passed the General Data Protection Regulation (GDPR), it heralded a new age for data protection and privacy. Legislators across the world knew it was only a matter of time before their citizens started demanding something similar in scope and effectiveness. That is primarily the sentiment that led to first the California Consumer Privacy Act (CCPA) and then the California Privacy Rights Act (CPRA).
With nearly a year having passed since CPRA and two since CCPA, most consumers still don’t understand what sets these two pieces of legislation apart from GDPR and what’s similar. There are some key differences between the three, while the core principles remain intact. For a clearer understanding, read below:
GDPRThe European Union (EU)'s General Data Protection Regulation (GDPR) is the most comprehensive regulation created dealing with consumer's data privacy. It is inevitable that all subsequent regulations on the subject in Europe and elsewhere would draw comparisons between the GDPR and CCPA/CPRA. |
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Rights of Customers |
To begin with, the GDPR has an incredibly expansive list of rights that all consumers have. These include the right to be informed, right to erasure, right to restrict data processing, right to data rectification, right to object to data portability, right to access, and the right to know if their information is being used for any sort of profiling among several other rights.
Perhaps the biggest difference between GDPR and CCPA/CPRA is the opt-in vs. opt-out consent requirements. In other words, as per the GDPR, businesses need to have a lawful basis for processing any sort of customer data - and if the lawful basis is consent then data subjects must opt-in to agree to the processing. On the other hand, in CCPA/CPRA, businesses are allowed to process consumer personal information for any purpose they want unless the consumer exercises their right to opt-out of having their personal information sold to or shared with third parties. |
Scope |
Firstly, entities covered under the GDPR include both for-profit and nonprofit entities - including government bodies - which process the personal data of data subjects within the EU. CCPA/CPRA only applies to for-profit businesses which conduct business in California and cater to at least 100,000 customers or households, have $25 million or more in gross revenues or make 50% or more of their gross revenue by sharing/selling consumers' personal information.
The GDPR covers almost all forms of personal data while the CCPA/CPRA is specific about the exclusion of certain personal information from its scope such as medical information, clinical trials information, financial information covered under the Gramm-Leach-Bliley Act, and personal information covered under the Driver's Privacy Protection Act. |
Enforcement Agency |
Since coming into effect across the EU in May 2018, the Information Commissioner's Office (ICO) has been the primary enforcement body. In 2019, it was announced that despite the United Kingdom's decision to leave the EU, ICO would continue to enforce GDPR laws across the UK. |
Penalties |
Under GDPR, non-compliance and data breaches can result in fines as high as 20 million euros or 4% of the violating company's annual global turnover - whichever amount is higher.
Under CCPA/CPRA unintentional violations can lead to administrative fines of $2500 per violation and intentional violations can lead to fines of $7500 per violation. |
CCPAThe CCPA legislation was a landmark for data privacy and protection when it was passed in 2018. For consumers in California, it was the first real piece of legislation that provided them the right to privacy they merited in the 21st century. However, in hindsight, a clear room for improvement can be seen. Especially after the CPRA was approved less than a year later. |
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Rights of Customers |
Under CCPA, all California residents have the right to opt-out of third-party data sales, the right to be informed of data collection and rights, the right to have collected data disclosed, the right to have collected data deleted, and the right to equal services and prices without discrimination. |
Scope |
The CCPA only affects for-profit entities. It went to the length of describing what qualifies as a business with further expansion on that definition by the CPRA.
Furthermore, while both the GDPR and CCPA regulations require businesses to inform users when their data is being collected, sold, or disclosed, the GDPR is significantly more thorough. The CCPA requires users to be informed how their data was used every 12-months, while the GDPR requires this to be done within one month. Additionally, the CCPA requires all third parties to inform users if they've obtained their information while the GDPR requires all of that plus the reason why their data was obtained in the first place. |
Enforcement Agency |
The CCPA is enforced by the California Office of the Attorney General (OAG). The Attorney General's office is responsible for prescribing appropriate fines and penalties for entities found in violation of CCPA rules. |
Penalties |
The CCPA only levies penalties after a breach occurs. Non-compliance does not result in any sort of fine at all. The penalties involved are as follows:
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CPRAThe best way to describe CPRA would be that it can be considered a more comprehensive version of the CCPA. There are several key areas where it expands on the CCPA's provisions. |
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Rights of Customers |
Under CPRA, all consumers in California have the right to limit a business's use and disclosure of sensitive information. Additionally, they maintain the right to direct the business to use such information when absolutely necessary. Other than that, all businesses have to provide a clearly visible banner on their website homepage titled “Limit the Use of My Sensitive Personal Information.” with a proper link to a page that would allow them to do so. |
Scope |
CPRA amended the criteria for what qualifies as a “Business”. While the CCPA described a business as an entity that buys, sells, or shares the personal information of 50,000 consumers, CPRA ups the threshold to 100,000.
Moreover, the CPRA added the term, “sharing” to the CCPA's criteria of a business deriving 50% or more of its annual revenue from selling consumers' personal information. Other than that, the CPRA introduced an entirely new category of protected data: sensitive personal information (SPI). This provision is fairly similar to the GDPR's Article 9. As a result, consumers have a right to ask a business' website to limit the use of their sensitive personal information if they fall under CPRA regulations. Other provisions the CPRA has adopted from the GDPR include data minimization, purpose limitation, and storage limitation. Unlike the CCPA, these provisions are codified parts of the official CPRA regulation. |
Enforcement Agency |
The CPRA created an entirely new authority responsible for enforcing it. The CPRA will be enforced by the California Privacy Protection Agency (CPPA), with absolute investigative and enforcement powers. |
Penalties |
Same penalties as prescribed by the CCPA. An additional $7,500 fine in case the consumer privacy rights of a minor are violated. Businesses can avoid the fines if they address and rectify the issues within a 30-day period after being notified by the Attorney General. |
There are still certain aspects of the CPRA that won't come into effect until January 1, 2023. Most companies will spend 2021 and 2022 laying their infrastructural groundwork for CPRA compliance.
Seeing how their counterparts in the EU have dealt with the GDPR could be key in ensuring a smooth transition. With CPRA requiring businesses to structure their data collection in accordance with the new regulation, this is where Securiti could be just what you need.
As a leader in global privacy compliance software, Securiti harnesses the power of artificial intelligence and machine learning to provide businesses the ability to automate a significant portion of their compliance tasks. Through its AI-driven data discovery, DSR automation, documented accountability, and automation you can become CPRA compliant with a simple click of a button.
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Break Silos of Sensitive Data & Risk Understanding across Multicloud and self managed systems. Common grammar, policies and reporting
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Snowflake is a cloud based data warehouse that allows organizations to run large scale data analytics projects to uncover business insights, run or train machine learning models, and modernize their data infrastructure.
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Microsoft O365 is the ubiquitous productivity suite for every business worker. Users rely on Office products such as OneDrive and SharePoint to collaborate with their co-workers.
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Organizations want to migrate their on-premises data to cloud data stores to take advantage of scale and flexibility while reducing operational cost of managing on-premises infrastructure. However, due to privacy regulations such as GDPR, CCPA administrators have to ensure that data is migrated in compliance with these laws.
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CDMC Framework
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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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China has complex data protection and data security regime, however, the following are three main laws that primarily cover China’s data protection and data security regulatory framework. These laws are:
Frameworks
UAE have number of laws in place that govern privacy as well as data security in the UAE. Some of those includes:
Frameworks
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.
Frameworks
The Australian data laws aim to give consumers control over their data and promote greater transparency about how organizations use data containing personal identifiers.
Frameworks
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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In November 2020, the European Commission released a draft of the new Data Governance Act. This came as a result of the 2020 European Data Strategy that aims to facilitate data sharing across sectors and member states.
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