California Consumer Privacy Act is Now in Effect and It Impacts How We Do Business in Florida
As of January 1, 2020, the California Consumer Privacy Act became effective creating data privacy requirements for businesses who interact with California consumers or sell data collected about California consumers. The law applies to any Florida companies that “do business” in California and meet these criteria:
- has a gross annual revenue of $25 million, or
- annually deals in the personal information of 50,000 or more California consumers, households or devices, or
- derives more than 50% of their annual revenue from selling California personal information or
- shares common branding with a company that meets criteria 1, 2, or 3.
Doing business in California is broadly defined as engaging in any transaction in person or over the internet with a California resident for economic gain. For example, sales of goods shipped to California, or paying a remote employee wages if that employee is a resident of California.
The law gives consumers the right to request disclosure of the following:
- the categories and specific pieces of personal information the company has collected;
- the categories of sources from which the personal information is collected;
- the business or commercial purpose for collecting or selling the personal information; and
- which types of third parties with whom the business shares the individual’s personal information.
Consumers can also request that the business delete their personal information subject to certain exceptions and also direct that the company not sell their personal information.
The law requires in most instances that businesses typically act on consumer requests within 45 days of receipt. Consumers must be able to make these requests easily and for no cost.
Additionally, the privacy notices of companies subject to the law must include additional disclosures, including linking to a web-based information opt-out provision. The California law is the first such law adopted in the United States, but similar legislation is pending in several other states.
If you think your company may be subject to the California law, or if you want to discuss how other pending legislation may impact your company, please contact us to discuss your business’s unique situation.