With the European Union's General Data Protection Regulation (GDPR) implementation on May 25, 2018, a somewhat similar type of regulation will shortly be introduced in the United States, as well. Known as the California Consumer Privacy Act (CCPA) is expected to come into effect on January 1st, 2020, adding several new regulations regarding consumers' data.
Among these regulations, we can expect things like the rights of consumers to know what data about themselves is being collected, the right to deny the sale of that information, as well as the right to delete that data. They are also entitled to know the commercial purpose of their information, to know which third-parties will have access to it, as well as the private right of action when companies breach that data.
For companies to prepare themselves for the upcoming implementation of the CCPA, they need to be aware of the regulations and assess the business risks that may come attached. Below are several ways for your company to prepare for the California Consumer Privacy Act.
One of the many new requirements of the CCPA is for every business having to deal with California residents is to update their privacy policies so that they include the residents' rights. You will need to have this ready before the act goes into effect on January 1st, 2020.
With many similarities between the GDPR and CCPA like subject data rights of access, portability, or erasure, companies can leverage their GDPR program now to prepare themselves for the upcoming CCPA better. To do this, you can use a Compliance Manager to ensure that you are up to code for both the GDPR and CCPA.
One critical aspect that needs special consideration is your data inventories. You will need to map every piece of personal information about your customers, gathered by either your marketing or sales teams. Once this is complete, you will have to make sure that it's prepared for access, portability, and deletion requests from your clients. You will also need to make sure that your marketing software vendors are also able to fulfill these obligations. If not, it would be wise to switch to more privacy-oriented vendors.
The CCPA will impose penalties for data breaches of consumers personal information. When it comes to the GDPR and CCPA, encryption is seen as a useful and effective method of protecting such personal information from unauthorized parties in the event of a data breach.
Companies will also need to reevaluate those from who they buy customer data. These third parties need to be legitimate; otherwise, you may be subject to hefty fines since this is considered as operating on breached or stolen data.
To comply with the California Consumer Privacy Act, it's best that you find a partner that will help you navigate the path forward. Managed Solution will help ensure that you are in compliance with all the requirements of CCPA. Contact us today!
[vc_row][vc_column][vc_empty_space][vc_column_text]San Diego, CA, February 6, 2019. Athena San Diego hosted a panel of data privacy experts to discuss how changes in privacy, General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA) affect businesses in the US.
Data privacy experts that shared their knowledge and experience with the audience:
The field of privacy is changing. Consumers are now demanding privacy and noticing how their data is being used, and as a result they are taking back the control over their own data. In addition, the laws are holding companies more accountable to respect the privacy of their consumers.
The reality is, data privacy laws are going to apply to your business sooner or later, no matter where you are in the world. Therefore, being informed and ready to comply with the laws is crucial for your business to thrive in the future and establish trust with your consumers.
Robert Meyers, Director of Systems Architecture at Managed Solution explained that the number one challenge that companies face is knowing what data they are collecting in the first place: “The challenges arise when you are keeping data that you do not need anymore. Do not be a data pack rat, know what you have and delete what you do not need.”
The debate was very lively as the audience had a lot of questions and examples for the panel, demonstrating that new data privacy laws bring uncertainty. Therefore, every business should make sure they know in what way the privacy laws affect them and the data they collect and store.[/vc_column_text][grve_callout button_text="Apply here" button_link="url:https%3A%2F%2Fmanagedsolut.wpengine.com%2Fcontact-us%2F||target:%20_blank|"]To help you make first steps towards the CCPA, we offer a free 30 min consultation with our data privacy guru Robert Meyers, CISM, CIPP/E.[/grve_callout][/vc_column][/vc_row]
Despite their importance, not everyone knows what data privacy laws are. In short, data privacy laws are all about prohibiting the disclosure or misuse of information of private individuals, and being compliant with data privacy laws is extremely important.
To date, there are over 80 countries that have varying degrees of data security laws in place. Most noteworthy is the European Union's recent enactment of the General Data Protection Regulation (GDPR). The United States, on the other hand, is somewhat notorious for not having a similar, comprehensive set of data privacy laws, but instead, some limited sectoral laws in some areas, based on the Fair Information Practice.
Despite the differences that may occur, some basic principles apply everywhere in the US.
SMEs are concerned whether they are, in fact protecting their client's data and whether they are in compliance with Data Privacy Laws. Here are several other conditions/reasons why SMEs are concerned.
What's more, many of these businesses may not even be aware that they use cloud-based services - in which case they need to comply with these regulations. If you are using Gmail or Outlook.com, you are using the cloud.
All of the requirements presented above will only become more binding and rigorous with time, right alongside the seriousness of the data breaches, themselves.
It is also important to remember that a data breach can also cause more damage to a business than the direct value of the loss. First, there are the personnel costs related to the recovery. Then, we have others such as post-incident costs used for improving customer relations, the brand image, the investigation, plus the many years needed to protect your customer's credit.
The legal costs involved, such as fines, fees, and civil suits should also be mentioned here. Also, let's not forget about the value of lost customers which can quickly send an SME out of business.
ConclusionGoing forward, SMEs need to remember that there are many clearly defined requirements, both legal and financial, for providing adequate protection for your clients' data. As times goes on and digital threats become more and more prevalent, security measures will become more stringent, while providing data security will become another cost of doing business.
If you want to keep yourself up-to-date, please feel free to check out our website. Our IT professionals and engineers have 23 years of combined experience and are more than qualified to find solutions to all of your security concerns. Contact us today to schedule an assessment.
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