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What is the California Consumer Privacy Act (CCPA)?

Glossary definition

What is the California Consumer Privacy Act (CCPA)?

Similar to the General Data Protection Act (GDPR) in Europe, the California Consumer Privacy Act (CCPA) is intended to give California consumers and households control over their personal information that’s used and sold by businesses.

What is the CCPA?

In broad terms the CCPA is a continuation of the California Constitution that says the right to privacy is inalienable. It forms part of California privacy legislation, which includes other legislation such as the Online Privacy Protection Act (CalOPPA), the Privacy Rights for California Minors in the Digital World Act, and—in particular—Shine the Light, which gives Californians the right to know how businesses handle their personal information.

The CCPA specifically gives California consumers the right to know the following from businesses that conduct commercial activities in the state:

  • What personal information is being collected about them
  • Whether their personal information is sold or disclosed—and to whom

It gives them the right to:

  • Say no to the sale of personal information, and request it is deleted
  • Request a copy of their personal information held by a business
  • Not be discriminated against in price or product/services offered should they exercise their rights under the CCPA

Affected businesses need to put in place measures to ensure the above is possible.

When does it take effect?

The CCPA becomes law on January 1, 2020.

What kinds of businesses or organizations does the CCPA affect?

The CCPA applies to any business that can be described in any or all of the following ways:

  • Has annual gross revenues in excess of $25,000,000
  • That alone or in combination with another business, buys or sells the personal information of 50,000 or more consumers, households, or devices
  • Derives 50% or more of its annual revenues from selling consumers’ personal information

Additionally, the CCPA applies to any entity controlled by any of the types of business described above, and that shares common branding with the business.

Learn more about the CCPA

Sage’s dedicated CCPA home page contains additional useful resources that can help your business adapt and become compliant in time for the new legislation:

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