What is CCPA, and Who Needs to Comply?

Blog

What is CCPA, and Who Needs to Comply?

CCPA is California’s comprehensive data privacy law, giving residents greater control over their personal information. It applies to any for-profit business that meets one or more of the following criteria:

Annual gross revenue of $25 million or more
Buys, sells, or shares personal data of 100,000+ California residents
Derives 50% or more of revenue from selling or sharing personal data

If you meet these thresholds—even if you’re not based in California—CCPA applies to you.

What counts as “personal information” under CCPA?
CCPA defines personal information (PI) broadly. It includes:

  • Names, addresses, email addresses, phone numbers
  • IP addresses, browsing history, geolocation data
  • Purchase records, biometric data, employment information
  • Any data that can be linked to an individual or household

If your business collects or stores consumer data, you must follow strict rules on how you collect, use, and share that information.The Cost of CCPA Non-ComplianceThink CCPA enforcement isn’t serious? Think again.💰 Over $300 million in CCPA fines and settlements have already been issued.
⚠️ Businesses face penalties of up to $7,500 per intentional violation.
📉 Lawsuits are rising, with consumers suing companies for data misuse, breaches, and privacy violations.
🔴 California’s Attorney General and the CPPA (California Privacy Protection Agency) aggressively enforce CCPA, with big-name companies already facing lawsuits and penalties.The reality? Failing to comply with CCPA isn’t worth the risk.CCPA Compliance: What Your Business Must Do1. Give Consumers Clear Privacy RightsUnder CCPA, businesses must honor five core consumer rights:✅ Right to Know – Consumers can request what personal data you collect, where it’s stored, and how it’s used.
Right to Delete – Customers can ask you to delete their data, with few exceptions.
Right to Opt-Out – If you sell or share consumer data, you must provide a clear “Do Not Sell or Share My Data” link.
Right to Correct – Consumers can request corrections to inaccurate data.
Right to Limit Data Use – If you collect sensitive personal information, consumers can restrict how it’s used.Failing to honor these rights within 45 days can result in enforcement actions and fines.2. Update Your Privacy PolicyYour business must have a CCPA-compliant privacy policy that explains:

  • What data you collect
  • How it’s used and shared
  • How consumers can request data access, deletion, or opt-out

Your privacy policy must be easily accessible on your website and updated annually.3. Implement a “Do Not Sell or Share My Data” LinkIf your company sells or shares consumer data, CCPA requires you to:🔹 Add a “Do Not Sell or Share My Data” link on your homepage
🔹 Allow users to opt out of data sharing without any obstacles
🔹 Ensure third-party vendors honor opt-out requestsEven if you don’t directly sell data, using third-party trackers, ad networks, or analytics platforms could qualify as selling under CCPA.4. Strengthen Data SecurityCalifornia law now allows consumers to sue companies directly for data breaches if businesses fail to implement reasonable security measures.🚨 If you experience a breach, you can be sued for $100-$750 per affected consumer—even without proof of harm.To reduce risk, your business should:
Encrypt consumer data at rest and in transit.
Use multi-factor authentication to protect accounts.
Regularly audit vendors handling consumer data.
Implement access controls to limit data exposure.Failing to protect California consumer data can lead to class-action lawsuits and hefty settlements.5. Train Your TeamYour employees must be trained on CCPA rights, data requests, and security best practices.📌 Can your staff handle a consumer request within 45 days?
📌 Do employees know how to identify and report data breaches?
📌 Are third-party vendors following CCPA guidelines?Employee errors are a major cause of compliance violations—so training is critical.What About CPRA? (California Privacy Rights Act)The CPRA (California Privacy Rights Act) went into effect in 2023, strengthening CCPA rules.📢 Key CPRA updates:
✔️ Expands consumer rights (adds the Right to Correct & Right to Limit Use of Sensitive Data)
✔️ Applies stricter data security requirements
✔️ Creates the California Privacy Protection Agency (CPPA) for stronger enforcementIf your business was already CCPA-compliant, you must now update policies to meet CPRA standards.CCPA Compliance: Where to Start?If your business handles California consumer data, here’s how to get compliant fast:✅ Conduct a Data Audit – Identify what personal data you collect, store, and share.
Update Your Privacy Policy – Ensure your privacy notice meets CCPA and CPRA requirements.
Implement a Consumer Rights Request System – Set up a way for consumers to request, delete, and correct their data.
Add an Opt-Out Mechanism – Provide a “Do Not Sell or Share” option if needed.
Secure Your Data – Strengthen encryption, access controls, and cybersecurity policies.
Train Your Employees – Make sure your team understands CCPA requirements.At LMB Law Firm, we help businesses navigate CCPA compliance with customized legal strategies, risk assessments, and regulatory defense. Whether you need policy updates, security improvements, or breach response planning, our team is here to protect your business.Final Thoughts: Avoid Lawsuits, Fines & Reputational DamageCCPA isn’t going away—and enforcement is getting tougher every year.📉 Failing to comply means risking lawsuits, government fines, and customer distrust.
🚀 Companies that prioritize privacy build stronger customer relationships and avoid legal headaches.If you’re unsure about your CCPA compliance, don’t wait until regulators come knocking.👉 Need expert CCPA legal guidance? Contact LMB Law Firm today.

Blogs

Recent Blogs