The California Consumer Privacy Act offers protections to consumers for how their data is collected and used online. The law, which is expected to go into effect in 2020, will have a significant impact for digital marketers on how they collect, store and sell data.
Much like the GDPR in Europe, online marketers will need to know the details of the law to ensure they are compliant. The California Consumer Privacy Act impacts any company who works with customers in California.
Still Under Review
There may still be changes to the law. Advocates on both sides of the issue are attempting to get changes made.
For example, privacy advocates are concerned that amendments to the law could lead to the sharing of personal data “when it comes to selling ad impressions using real-time bidding, a form of programmatic advertising that generated $20 billion in revenue in the U.S. alone last year,” according to Adweek.
On the other hand, those in the industry have advocated for a national law rather than dealing with a patchwork quilt of laws across the country, according to Adweek.
As things now stand, the California Consumer Privacy Act will impact digital marketing in a variety of ways if it goes into effect next year.
California Consumer Privacy Act Rules
These are some of the main provisions of the California Consumer Privacy Act.
Right to Privacy
The act gives people the right, once a year, to request a report on what information businesses are collecting about them and their devices and gives them the choice to tell them to stop collecting the information.
Businesses that collect and then sell information to a third party must tell consumers upon request what categories of personal information they are selling and to whom they sold the personal information.
If a consumer decides to not allow their personal data to be collected and sold, the law protects them from being discriminated against. In other words, a company cannot charge more, deny access to services or change the quality of the service because someone decides not to have information collected.
For those who do allow data to be collected, the act seeks to get businesses to enact better data security. The act would increase the fines and penalties for businesses who do not meet state standards on information security.
These are some of the major ways that the new act will impact digital advertisers who do business in California. While the provisions of the California Consumer Privacy Act may change, it is critical for digital marketers to keep track of what the act says to ensure their work meets the new standards.