Understanding the Differences Between CCPA and CPRA in Data Privacy

In recent years, data privacy has become a paramount concern for consumers and businesses alike. The California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA) are two significant legislations aimed at enhancing data privacy rights for California residents. While both laws share common goals, they have distinct differences that are important to understand. Here’s a comprehensive breakdown of the key differences between CCPA and CPRA regarding data privacy.

CCPA: A Foundation for Data Privacy

The CCPA, effective January 1, 2020, was one of the first comprehensive data privacy laws in the United States. It grants California residents specific rights regarding their personal information, aiming to increase transparency and control over how businesses collect and use data. Key provisions include:

1. Right to Know: Consumers can request information about the personal data a business collects, uses, and shares.
2. Right to Delete: Consumers can request the deletion of their personal information held by a business.
3. Right to Opt-Out: Consumers can opt-out of the sale of their personal information.
4. Right to Non-Discrimination: Consumers are protected from discrimination for exercising their privacy rights.

CPRA: Enhancing and Expanding Privacy Protections

The CPRA, which amends the CCPA and becomes fully effective on January 1, 2023, builds upon the foundation laid by the CCPA. It introduces several enhancements and new provisions to strengthen data privacy protections. Key differences and additions include:

Creation of the California Privacy Protection Agency (CPPA):

• ?The CPRA establishes a dedicated regulatory body to enforce and implement privacy laws in California, providing greater oversight and accountability.

New Category of Sensitive Personal Information:

• CPRA introduces a new category for "sensitive personal information," which includes data like Social Security numbers, driver's license numbers, precise geolocation, racial or ethnic origin, and more.
• Consumers have the right to limit the use and disclosure of their sensitive personal information.

Expanded Consumer Rights:

• Right to Correct: Consumers can request the correction of inaccurate personal information.
• Right to Access Information on Automated Decision-Making: Consumers can request information about and opt-out of automated decision-making processes, including profiling.
• Right to Data Portability: Enhances the right to access by allowing consumers to request the transfer of their data to another entity.

Extended Data Retention Requirements:

• Businesses must disclose their data retention periods and ensure personal information is not retained longer than necessary.

Stronger Protections for Minors:

• The CPRA increases protections for data collected from minors under 16, including higher fines for violations involving children's data.

Expansion of Data Breach Liability:

• The CPRA extends the liability for data breaches to include email addresses in combination with a password or security question and answer that would permit access to an account.

Contractual Requirements with Third Parties:

• Businesses must include specific provisions in contracts with third parties, service providers, and contractors to ensure they comply with CPRA requirements.

8. Annual Risk Assessments and Audits:

• The CPRA may require businesses to conduct annual risk assessments and cybersecurity audits, especially for processing activities posing significant risks to privacy or security.

Conclusion

While both the CCPA and CPRA aim to protect consumer data privacy, the CPRA significantly expands and enhances the original protections provided by the CCPA. By introducing new consumer rights, establishing a dedicated regulatory body, and imposing stricter requirements on businesses, the CPRA represents a substantial advancement in data privacy legislation. Understanding these differences is crucial for businesses to ensure compliance and for consumers to fully exercise their privacy rights.