California Privacy Rights Act (CPRA)

What is the California Privacy Rights Act?

The California Privacy Rights Act (CPRA) is a comprehensive privacy law that expands and strengthens data privacy rights for California residents. Approved by California voters in 2020, the CPRA builds upon the foundation set by the California Consumer Privacy Act (CCPA) and introduces additional rights, stricter enforcement mechanisms, and more specific guidelines for businesses handling personal information. The CPRA covers various aspects of personal data protection, including sensitive data management, expanded consumer rights, and increased transparency from companies on data usage.

The CPRA provides California residents with rights similar to the General Data Protection Regulation (GDPR) in Europe, granting individuals more control over how their personal information is collected, shared, and used. Unlike the CCPA, the CPRA establishes a dedicated regulatory agency, the California Privacy Protection Agency (CPPA), responsible for enforcing the law, setting it apart as one of the strictest privacy laws in the United States.

California Privacy Rights Act Synonyms

While the CPRA is officially known as the California Privacy Rights Act, it is sometimes referred to by other names or acronyms. Here are some common synonyms or alternative terms:

• CPRA
• California Consumer Privacy Rights Act
• California Data Privacy Rights Law
• California Data Protection Act (although not its official name)

These synonyms are often used interchangeably in discussions about California’s privacy regulations, especially when distinguishing between CPRA and CCPA, which is the initial California privacy law.

How Did CPRA Become Law?

The CPRA became law through a ballot initiative, known as Proposition 24, which was presented to California voters during the 2020 general election. California’s history with privacy laws began with the passage of the California Consumer Privacy Act (CCPA) in 2018, which set new standards for consumer data privacy in the U.S. Although groundbreaking, the CCPA faced criticism from privacy advocates and businesses alike, who argued that it either did not go far enough to protect consumer rights or was too complex and burdensome for compliance.

Seeing the need for more robust privacy protections, Californians for Consumer Privacy, the organization behind the CCPA, led the effort to strengthen the law further through the CPRA. Proposition 24 received widespread public support, ultimately passing with a majority vote. The CPRA not only expanded the rights established by the CCPA but also introduced the California Privacy Protection Agency, tasked with overseeing and enforcing privacy law compliance.

What Does the CPRA Effect?

The passage of the CPRA brought about substantial changes to California’s privacy landscape. Key effects of the CPRA include:

• Expanded Consumer Rights: Under the CPRA, consumers can request the correction of inaccurate personal information and limit the use of sensitive personal data. The law also strengthens rights around opting out of data sharing for targeted advertising purposes.
• Creation of the California Privacy Protection Agency (CPPA): One of the most significant effects of the CPRA is the establishment of the CPPA, which operates independently to enforce privacy laws and ensure companies adhere to CPRA standards.
• Stricter Requirements on Sensitive Data: The CPRA introduces a new category of “sensitive personal information,” which includes data like Social Security numbers, health information, and geolocation data. Companies must implement measures to protect this information and give consumers the ability to limit its use.
• Extended Accountability: CPRA mandates more detailed contractual agreements between businesses and third-party vendors that process personal information, ensuring accountability and reducing the risk of data misuse.

These effects place California at the forefront of data privacy laws in the United States, with many companies viewing CPRA compliance as a standard for handling U.S. consumers’ data.

When Did CPRA Become Effective?

The CPRA officially took effect on January 1, 2023, with enforcement beginning on July 1, 2023. Although the CPRA was passed in 2020, it included a delayed enforcement period to allow businesses time to adjust their data management practices to align with the new requirements. This transition period was crucial for organizations to update their privacy policies, enhance data protection mechanisms, and establish protocols to manage sensitive data.

How is CPRA Different from the California Consumer Privacy Act (CCPA)?

The CPRA is an expansion of the CCPA but introduces several notable differences:

• Additional Consumer Rights: The CPRA expands consumer rights to include the correction of inaccurate data and limits on sensitive information use, going beyond the CCPA’s initial scope.
• Creation of the CPPA: Unlike the CCPA, which relied on the California Attorney General for enforcement, the CPRA establishes a dedicated regulatory body, the California Privacy Protection Agency, to oversee compliance and enforce the law.
• Stricter Requirements on Sensitive Information: While the CCPA required basic data protection measures, the CPRA introduces specific regulations for sensitive data, such as biometric information and Social Security numbers, adding further layers of protection.
• Extended Look-Back Period: Under the CPRA, businesses must now account for consumer data collection over a 12-month period prior to any data access requests, allowing consumers greater insight into how their data has been used historically.

These differences underscore the CPRA’s goal to close gaps in the CCPA and establish a more comprehensive privacy framework, aligning California’s standards closer to international privacy regulations like GDPR.

How Do You Comply with CPRA?

Complying with the CPRA involves several steps and considerations, particularly for businesses that collect, store, or process personal information of California residents. Here are the primary compliance requirements:

• Update Privacy Policies: Businesses must update their privacy policies to reflect CPRA requirements, including details on sensitive data handling and options for limiting the use of personal information.
• Implement Data Minimization and Retention Policies: Under the CPRA, companies are required to only collect and retain information necessary for specific purposes, with policies on how long data will be kept.
• Provide Consumer Rights Options: Companies must create user-friendly systems for consumers to exercise their rights, including data correction and limiting the sharing of sensitive information.
• Secure Data Agreements with Third-Party Processors: The CPRA mandates that businesses ensure third parties handling consumer data comply with data privacy standards through detailed contractual agreements.

Compliance is critical for avoiding penalties and ensuring trust with consumers in California who are increasingly concerned about their data privacy.

Test Data Management and CPRA

With the CPRA’s stringent data protection requirements, companies handling sensitive data, including test data, must ensure compliance with privacy standards. Test data management plays an essential role in protecting consumer data during software development and testing processes. By implementing best practices for test data management, such as data masking, data anonymization, and minimization, companies can maintain data privacy while conducting necessary testing.

The CPRA’s requirements for limiting data use and protecting sensitive information mean that test environments must align with production standards. Proper test data management helps avoid the risks of exposing consumer data in testing and ensures that even test data complies with privacy regulations.

CPRA Compliance Tips

Complying with the CPRA requires careful attention to detail and proactive privacy practices. Here are a few key tips to help businesses align with CPRA regulations:

• Regularly Audit Data Practices: Conduct periodic reviews of data handling practices to identify areas of non-compliance or improvement in how sensitive data is processed.
• Implement Privacy by Design: Embed data privacy into all business processes, ensuring that data protection is part of product development, marketing, and customer relations.
• Train Employees on Data Privacy Practices: Educate staff on the requirements of the CPRA, especially those who handle consumer data, to create a culture of privacy compliance within the organization.
• Update Data Protection Policies: Revisit data protection policies frequently to keep them in line with the latest CPRA guidelines and to adapt to any new requirements issued by the CPPA.

Following these tips can simplify the compliance process and reduce the risk of regulatory action against the business.

Steps for CPRA Compliance

Ensuring CPRA compliance involves a multi-step process that focuses on improving data privacy and transparency. Below are the essential steps for meeting CPRA requirements:

• Understand the Scope of CPRA in Your Organization: Determine whether your business meets the criteria for CPRA compliance, including the collection of personal information from California residents and the annual revenue threshold.
• Map Out Data Collection Practices: Identify all points at which personal data is collected, processed, or shared, creating a data inventory that includes details on sensitive data.
• Revise Privacy Policies and Notices: Ensure that your privacy policies are up-to-date and clearly communicate how personal data is collected, used, and shared, in compliance with CPRA.
• Establish Consumer Rights Processes: Set up protocols for handling consumer requests to access, delete, correct, or limit the sharing of their data.
• Create Security and Data Minimization Measures: Apply necessary security measures to protect sensitive information, and implement policies for minimizing data collection and storage according to CPRA guidelines.
• Conduct Employee Training on Privacy Compliance: Regular training for staff involved in data processing is critical for maintaining compliance, as they must understand the organization’s obligations under CPRA.
• Stay Informed on CPPA Guidance and Updates: The California Privacy Protection Agency may issue updates or guidelines on CPRA compliance; staying informed on these updates ensures continued alignment with regulations.

The California Privacy Rights Act sets a new standard for consumer data privacy within the U.S., providing California residents with expanded rights and enhanced control over their personal information. Compliance with the CPRA requires a robust commitment to data protection practices and an understanding of the law’s specific requirements. By implementing the steps and best practices outlined here, companies can not only avoid regulatory penalties but also build trust with consumers by demonstrating a proactive stance on data privacy. The CPRA’s focus on transparency, accountability, and consumer rights reflects a growing trend towards more stringent privacy laws worldwide, positioning California as a leader in data privacy protection.