[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.the-future-of-commerce.com\/2020\/12\/21\/california-privacy-rights-act-what-companies-need-to-know\/#BlogPosting","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2020\/12\/21\/california-privacy-rights-act-what-companies-need-to-know\/","headline":"California Privacy Rights Act: What companies need to know","name":"California Privacy Rights Act: What companies need to know","description":"The California Privacy Rights Act gives consumers more control over their data. Here's what businesses need to know and what they can do to win consumer trust.","datePublished":"2020-12-21","dateModified":"2024-04-12","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/ratul-shah\/#Person","name":"Ratul Shah","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/ratul-shah\/","identifier":305,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/18781ab115e32031df4d1cbc3baffb8fb9bc77288c20e05eb447f4e9739062f4?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/18781ab115e32031df4d1cbc3baffb8fb9bc77288c20e05eb447f4e9739062f4?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"The Future of Commerce","logo":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","width":172,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2020\/12\/FCEE079_PrivacyTrust_HB.jpg","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2020\/12\/FCEE079_PrivacyTrust_HB.jpg","height":375,"width":1200},"url":"https:\/\/www.the-future-of-commerce.com\/2020\/12\/21\/california-privacy-rights-act-what-companies-need-to-know\/","about":[{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/customer-experience\/customer-data\/","name":"Customer Data","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_data","http:\/\/www.wikidata.org\/entity\/Q56278300"]},"Customer Engagement \/ Marketing",{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/customer-experience\/","name":"Customer Experience","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_experience","http:\/\/www.wikidata.org\/entity\/Q984142"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/customer-experience\/customer-experience-general\/","name":"Customer Experience","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_experience","http:\/\/www.wikidata.org\/entity\/Q984142"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/cdp-customer-data-platform-solution\/data-privacy\/","name":"Data Privacy: Laws, Consumer Expectations","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Consumer_privacy"]},"Government + Public Sector",{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/marketing\/marketing-general\/","name":"Marketing","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Marketing","http:\/\/www.wikidata.org\/entity\/Q39809"]}],"wordCount":971,"keywords":["CCPA | California Consumer Privacy Act","CIAM | Customer Identity and Access Management","Consumer Privacy","Data Protection"],"articleBody":"The recent passage of the California Privacy Rights Act poses a big question to global enterprises: Can you see the forest through the trees?Yes, the individual tree that\u2019s dominating the current data privacy landscape demands attention. The CPRA mandates tough customer data collection and processing rules businesses will need to address, or they\u2019ll face tough consequences.But business leaders also need a wider perspective to see the whole forest. This legislation proves just how important data privacy is to consumers. And for consumers, how well a company protects their data privacy heavily impacts their perception of a brand.So, let\u2019s analyze the details of the new California privacy law, but also take a step back to assess the wider impact of data privacy on customer experience.What is the California Privacy Rights Act? Listed on the ballot as California Proposition 24, the legislation expanded the coverage and penalties originally laid out in the California Consumer Protection Act of 2018. When all the votes came in, it passed by a wide margin \u2013 56.2% to 43.8%. The new rules \u2013 sometimes referred to as CCPA 2.0 — take effect January 1, 2023.One big change: The new act expands the access rights of data subjects (individuals) residing in California to more closely mirror the rights of EU residents under the General Data Protection Regulation (GDPR).In addition to the\u00a0rights granted by the CCPA, consumers will be able to:Prevent businesses from sharing their personal informationCorrect inaccurate personal informationRestrict businesses\u2019 use of a new category of personal data called \u201csensitive personal information.\u201d which includes race, ethnicity, religion, genetic information, sexual orientation, precise geolocation, and financial information.The data-sharing restrictions are significant. Many companies used the CCPA\u2019s \u201cservice provider exception\u201d\u00a0to share customer data with publishers and ad tech vendors. This practice effectively sidestepped the purpose of the old legislation\u2019s \u201copt out of the sale of personal data\u201d requirement. Now, thanks to the CPRA, consumers can better protect themselves.In addition, the CPRA expands the state\u2019s ability to enforce its data privacy rules. It triples penalties for violating the rights of minors and establishes the California Privacy Protection Agency, which will enforce the laws and protect consumers\u2019 privacy rights.      What is CPRA? California Privacy Rights Act: Basics and Overview                As CPRA and the privacy-first web continue to gain traction, organizations need to adapt. Customers demand transparency about the collection and use of their personal information. Planning now saves you fines and headaches in the future.      Data privacy today: Consumers are in the driver\u2019s seatIn his 2019 research paper, \u201cData Privacy Goes Mainstream,\u201d privacy expert Tim Walters says:\u201cOf course you need to comply with myriad data regulations… But as the formerly \u2018nebulous concerns\u2019 about predatory data practices become a very real consumer backlash, firms risk far greater financial damage by failing to understand these evolving demands of the experience economy.\u201dThe California Privacy Rights Act proves Tim\u2019s point. Beyond expanding the impact of the CCPA, it demonstrates consumer demand for data privacy protections. Regional governments continue to pick up on this consumer-driven trend, and several more are issuing their own data privacy laws in the near future.Here\u2019s the inescapable truth for businesses today: Consumer privacy and data protection are key to the overall customer experience. Consumers may enjoy the timesaving and convenience benefits of personalized engagements, but they\u2019re still not willing to give brands permission to use their personal data.In fact, the CPRA addresses the sentiments expressed in a U.S. survey that\u00a0found that over 80% of the respondents\u00a0wanted the right to tell an organization not to share or sell their personal information.Give customers what they want: transparency and data control More than ever before, a piecemeal strategy of addressing individual regulatory matters as they emerge is a recipe for disaster for bottom-line revenue and brand reputation. There are simply too many regulations to track and address. At the same time, customers are neither stationary nor static.Some businesses are realizing their homegrown solutions are too difficult to scale, too slow to implement, and too resource intensive to sustain. Others are realizing their plan for stitching together existing identity and access management systems to address consent and preference data management is too limiting and expensive.Here\u2019s where enterprise consent and preference management (ECPM) solutions come into play. An ECPM solution helps provide customers with the transparency they demand by:Presenting terms, data privacy policies, and requests for permission to receive marketing communications or to take part in custom marketing activitiesCreating records of captured preferences and consent and maintaining version control of these records throughout the customer lifecycle, in order to satisfy audit requestsEnsuring that consumer preferences are enforced accurately across every downstream service and application involved in permission-based processing of consumer dataAlong with transparency, ECPM solutions put customers in control of their personal data visa self-service preference centers. These portals provide consumers with an intuitive, always-on ability to exercise their data subject access rights, change their marketing preferences, and manage their profile data.Advanced solutions also enable businesses to maintain all customer information in one place, while addressing data privacy requirements to keep granular records on consumers\u2019 consent and preferences.Bottom line: It\u2019s all about trustWhen it comes to delivering winning customer experiences, \u201cseeing the forest through the trees\u201d is easier said than done. In today\u2019s digital-first environment, success requires a shift from a reactive, compliance-centric posture to a proactive approach that acknowledges consumer concerns and responds with genuinely privacy-centric relationships.The question is not if you must comply with the regulatory requirements, but how doing so can earn the long-term trust and loyalty of your customers while setting you apart in a crowded market.  Identify, convert, retain.Learn how a great data strategy can drive BIG results HERE."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2020","item":"https:\/\/www.the-future-of-commerce.com\/2020\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"12","item":"https:\/\/www.the-future-of-commerce.com\/2020\/\/12\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"21","item":"https:\/\/www.the-future-of-commerce.com\/2020\/\/12\/\/21\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"California Privacy Rights Act: What companies need to know","item":"https:\/\/www.the-future-of-commerce.com\/2020\/12\/21\/california-privacy-rights-act-what-companies-need-to-know\/#breadcrumbitem"}]}]