In January 2020, the California Consumer Privacy Act (CCPA) became the first act of its kind to force substantial changes in how businesses handle consumers’ personal data. Estimates suggest that the CCPA will impact approximately 50,000 businesses throughout the country, ranging from small start-ups to major companies.
While the law is directed toward companies that do business in California, given today’s internet-based economy, there is a high probability that many companies besides those physically located in California will be impacted by CCPA, including many businesses right here in Michigan.
Other states are currently in the process of passing legislation that is similar to the CCPA. The following will review some critical details that all Michigan business owners should understand how these laws might impact business operations.
What Businesses are Impacted by the CCPA?
The CCPA impacts any for-profit entity or business that falls into any of the following categories:
- Businesses that collect personal information either directly or through the use of a third party and make decisions about how that data is used and processed.
- Businesses that operate in California and either have a gross yearly revenue of at least $25 million, which buy/sell/exchange the personal information of at least 50,000 consumers/households/devices, or
- Businesses that make at least half their annual revenue from the sale of consumer personal information
Some businesses, however, are entirely excluded from the CCPA. These include businesses that collect or sell personal information entirely outside of California, that do not hold onto any collected personal details, or that sell personal details as part of a merger.
What Personal Information is Covered by the CCPA?
The CCPA covers a wide range of information. If any data could potentially be viewed as personal in any way, it is protected by the CCPA. The most common examples of data covered under the CCPA includes browsing histories, credit card numbers, email addresses, and geolocation data.
What Rights are Granted by the CCPA?
The CCPA grants California residents various rights regarding their privacy and personal data. Michigan business owners should become acquainted with these rights, which include the ability to pursue damages for data breaches as well as the right to opt out of the sale of their personal data. Companies are also required by law to disclose whenever they are collecting personal data.
How Should Businesses Respond to the CCPA?
If your Michigan business has made any update following the EU’s most recent privacy regulation, you are likely still in compliance with the CCPA. If not, you should carefully review your business’s data collection methods as well as what type of data you collect. One of the reasons that you should promptly make these revisions is that businesses that fail to conform to the CCPA are at risk of facing civil penalties of up to $7,500 for each incident.
Contact an Experienced Michigan Corporate Law Attorney
If you have questions or concerns about how the CCPA might impact your business, it can help to speak with a knowledgeable corporate law attorney. Contact Resnick Law PC today to schedule a free case evaluation.