Understanding CPRA Compliance: Differences from GDPR and What it Means for Your Business

Understanding CPRA Compliance: Differences from GDPR and What it Means for Businesses in 2023 as we enter a world of new data privacy laws this year.

CPRA vs. CCPA

The California Privacy Rights Act (CPRA) is a privacy regulation that expands upon the California Consumer Privacy Act (CCPA) and enhances the protection of consumer data privacy rights in California. The CPRA introduces new requirements and changes to existing regulations that businesses must comply with. The purpose of this article is to provide an in-depth understanding of CPRA compliance, its differences from GDPR, and what it means for businesses.

CPRA vs GDPR: What are the Differences?

The General Data Protection Regulation (GDPR) is a privacy regulation that was introduced by the European Union (EU) in 2018. The GDPR and CPRA have similarities, such as providing data subjects with the right to access, rectify, and erase their personal data. However, there are also significant differences between the two regulations.

One of the key differences between the GDPR and CPRA is their scope. The GDPR applies to all businesses that process personal data of EU residents, while the CPRA applies to businesses that collect, share, or sell the personal information of California residents. Additionally, the CPRA introduces new requirements, such as the right to correct inaccurate personal information, the right to restrict the use of sensitive personal information, and the right to opt-out of the sale of personal information.

Another difference between the GDPR and CPRA is the definition of “sharing.” Under the GDPR, sharing refers to any form of disclosure of personal data to a third party, while under the CPRA, sharing is defined as the disclosure of personal information for cross-context behavioral advertising. This means that businesses may need to update their data sharing policies to comply with CPRA requirements.

What Does CPRA Compliance Mean for Businesses?

The CPRA imposes new requirements and changes to existing regulations that businesses must comply with. Failure to comply with CPRA requirements can result in fines and legal action. Therefore, it is crucial for businesses to understand the new requirements and changes to existing regulations to ensure CPRA compliance.

One of the significant changes introduced by the CPRA is the creation of a new category of personal information called “sensitive personal information.” The CPRA defines sensitive personal information as personal information that reveals racial or ethnic origin, religious or philosophical beliefs, or health, genetic, or biometric data. Businesses that collect, use, or share sensitive personal information must obtain explicit consent from consumers before processing this information.

Another important change introduced by the CPRA is the right to correct inaccurate personal information. This means that businesses must establish processes to enable consumers to correct inaccurate personal information that the business has collected about them.

Who Enforces CPRA?

The CPRA will be enforced by the California Privacy Protection Agency (CPPA). The CPPA is an independent regulatory body that will have the authority to enforce CPRA compliance, impose fines, and take legal action against non-compliant businesses. The CPPA will also be responsible for issuing guidelines, conducting investigations, and educating consumers and businesses about CPRA requirements.

What are the Penalties for Non-Compliance?

The CPRA imposes significant fines for non-compliance. Businesses that fail to comply with CPRA requirements can face fines of up to $7,500 per violation. Additionally, businesses that fail to provide consumers with the right to opt-out of the sale of personal information can face fines of up to $20,000 per violation.

How to Ensure CPRA Compliance

To ensure CPRA compliance, businesses must understand the new requirements and changes to existing regulations introduced by the CPRA. Some of the steps that businesses can take to ensure CPRA compliance include:

1. Conduct a Data Inventory: Businesses must first understand the types of data they collect, how it’s processed, and where it’s stored. Conducting a data inventory helps businesses identify areas where they may be collecting sensitive data, such as financial or health information, and ensure that they have appropriate controls in place to protect this data.
2. Implement a Data Privacy Program: Businesses should implement a comprehensive data privacy program that includes policies and procedures for managing consumer data. The program should include measures to ensure that consumer data is only collected for legitimate purposes and that it’s protected from unauthorized access, disclosure, or use.
3. Appoint a Data Protection Officer (DPO): The CPRA requires that businesses appoint a DPO who is responsible for overseeing data privacy compliance efforts. The DPO should be knowledgeable about data privacy regulations and work closely with other stakeholders within the organization to ensure that the business is fully compliant.
4. Obtain Consumer Consent: The CPRA requires businesses to obtain explicit consent from consumers before collecting or processing their personal data. Businesses should obtain consent in a clear and transparent manner and provide consumers with an easy way to withdraw their consent at any time.
5. Honor Consumer Rights: The CPRA grants consumers a number of rights regarding their personal data, including the right to access, delete, and correct their data. Businesses must provide consumers with a simple and easy-to-use process for exercising these rights and must respond to consumer requests in a timely and efficient manner.
6. Conduct Regular Audits: Businesses should conduct regular audits to ensure that their data privacy program is up to date and fully compliant with the CPRA. Audits should include a review of policies and procedures, as well as an assessment of data security measures and data breach response plans.
7. Train Employees: Employees are often the first line of defense against data breaches and other privacy violations. Businesses should provide regular training to employees to ensure that they understand their responsibilities under the CPRA and know how to identify and report potential privacy risks.