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The California Privacy Rights Act (CPRA) of 2020, also known as Proposition 24, is an amendment to the California Consumer Privacy Act (CCPA). Understanding this legislation is key for businesses hoping to achieve CPRA compliance and demonstrate a commitment to protecting consumer data.
The CPRA builds on the CCPA by expanding consumer privacy rights and establishing stricter regulations for businesses. While the CCPA introduced basic rights like opt-out of data sales, the CPRA added rights such as data correction, limiting the use of sensitive information, and stricter data retention rules.
CPRA applies to businesses that:
In other words, if you’re a large organization, you are most likely required to comply with CPRA.
CPRA requires California businesses to ensure consumer privacy protection by allowing individuals to access, delete, correct, or opt out of the sale or sharing of their personal information. Organizations must also limit data collection to necessary purposes and be transparent about the way they handle data.
CPRA is serious business, but how can you achieve compliance? Our handy checklist outlines everything you need to do to get on track with this new law.
First, make sure your company falls under the scope of CPRA. Compare your organization to the criteria listed above and determine whether you fall into any of those categories. This will help you gauge the extent to which you must implement CPRA compliance measures.
Now would be an excellent time to update your privacy policy to reflect transparent data handling processes, as mandated under CPRA. It should clearly inform consumers about their rights and explain how to exercise them. Honesty is key here––make sure your policy is easy to understand and accessible to consumers.
To achieve CPRA compliance, you need a thorough understanding of the personal information you handle. Identify what type of data you collect, where it is stored, and how/why it is used. That way, you can respond to consumer requests and inquiries and ensure your business is compliant with data retention requirements.
One of the guiding principles of CPRA is the idea that consumers have the right to know how their data is being used and opt out of sharing at any time. To comply with these requirements, organizations must establish procedures for processing and responding to consumer requests within the stipulated time frame.
For example, you might set up an online portal for submitting requests and train staff on how to handle them. You will also need to maintain records of these requests to demonstrate compliance if audited by the California Privacy Protection Agency (CPPA).
The CPRA imposes pretty stringent rules around relationships with third-party service providers who process personal information on organizations’ behalf. As such, your contracts with these entities must include specific provisions that require them to comply with CPRA regulations.
You also need to be sure third parties do not disclose personal information without the appropriate contractual assurances and that they only use the information for the purpose(s) specified in the contract.
Data minimization is a key element of CPRA compliance. It really emphasizes the importance of handling only as much data as is necessary. Businesses must establish policies and practices to limit the collection of personal information to what is relevant to their needs. They are also required to implement data retention policies to ensure that information is only kept for as long as it is needed for the disclosed purposes.
To demonstrate CPRA compliance, you also need to show a willingness and commitment to safeguarding consumer data. You can do this by conducting regular risk assessments to identify potential vulnerabilities, implementing encryption for sensitive data, and restricting access to personal information to authorized personnel.
Offer compliance training to all employees, focusing specifically on those who handle consumer data or are involved in processing consumer rights requests. A good training program should cover the key aspects of the CPRA. Employees should also be trained on how to identify and report potential data breaches or non-compliance issues.
If you want to really stay on top of CPRA compliance, you need to implement regular compliance monitoring and auditing. That way, you can (hopefully) catch issues before they spiral out of control.
Look for any gaps or weaknesses in your protocols and take corrective action as needed. This will also prepare you for external auditing by the CPPA and other regulatory bodies. While each organization’s needs are a little bit different, it is generally recommended that you audit and review data at least annually.
Accountability is everything when it comes to compliance. Establish clear lines of responsibility for data protection and privacy compliance within your organization. This may involve appointing a data protection officer (DPO) or a privacy compliance team that is solely responsible for overseeing CPRA compliance efforts.
Your governance structure should include regular reporting to senior management on compliance status, privacy risks, and any incidents or breaches. Maintain documentation of these processes and create detailed records of any decisions made regarding data processing activities. This is a great way to demonstrate accountability to regulators when the time comes.
California businesses should be mindful of CCPA updates, especially CPRA. Non-compliance can have major repercussions, which is why it’s important to tick every box on this CPRA compliance checklist. Compyl offers multiple solutions, including risk and policy management, to help organizations manage compliance. Get in touch with us to see how we can help streamline your CPRA compliance efforts.
