California Strengthens Consumer Rights in 2023
Consumers’ rights are protected both at the state and federal level, and California is known for having some of the strongest consumer rights in the country. However, as technology evolves and consumer information can be monetized in increasingly profitable ways, the laws must constantly change to keep up. In 2023, the state of California rolled out a new law to provide further protection to consumers.
Your private information is yours, and companies are obligated to follow strict laws and regulations when it comes to using or selling that information. If a company has overstepped, let’s talk about what comes next. Call the Law Offices of Robin D. Perry & Associates at 562-216-2944.
The CCPA
The California Consumer Privacy Act went into effect in 2020. This law affected businesses that brought in more than $25 million per year in gross revenue, processed personal information of 50,000 or more consumers or households, or earned 50% or more of its revenue from selling personal information. Under the CCPA, consumers gained the right to access, delete, and control private information when working with businesses that deal in the buying and selling of private information. Rights include the right to know, delete, opt out, opt in, limit the use and sharing of sensitive information, and not be discriminated against for asserting their rights under the CCPA.
Changes to the CCPA in 2023
The CCPA on its own was a monumental piece of legislation that elevated California’s consumer rights to a new level. The California Privacy Rights Act, the new piece of legislation in 2023, changes the reach and scope of the CCPA.
The CPRA changes one factor that determines which businesses are subject to the rules of the CCPA. Instead of applying to a business that processes personal information of 50,000 or more consumers, the law will apply to businesses processing the information of 100,000 or more consumers.
Under the CPRA, consumers can change their personal information as it is used by businesses. Businesses are also under stricter requirements regarding data minimization, data retention, and purpose of use.
The CCPA allowed consumers to opt out of having their personal information sold. The CPRA also allows consumers to opt out of having their information shared for cross-context behavioral advertising. This is true even when there is no money being paid by or to either party in the sharing of information. This type of protection is especially important now, when a consumer’s information is used across apps, websites, and social media platforms to personalize their advertising.
The CPRA also grants additional protections to information deemed to be sensitive personal information. This information includes account information, geolocation data, the contents of electronic messages, and biometric information.
In some ways, the CPRA also changes how businesses work with other businesses and contractors. As an example, when consumers request that their information be deleted, businesses must pass these requests onto any service providers or third parties to whom they have sold this information. They must also pass requests on if they have shared the information with a third party, even if no money changed hands. The CPRA requires that covered businesses enter into a contract with any parties with whom they share personal information.
Businesses Expected to Be Impacted Statewide
With the increase in threshold from 50,000 consumers to 100,000 consumers, some smaller businesses will no longer be bound by the terms of the CPRA. However, those that are bound by the CPRA will need to make significant changes to their business operations and procedures. Violating the CPRA is likely to lead to costly fines and other penalties. Since this is still relatively new, it remains to be seen exactly how the CPRA will affect the relationships between businesses and consumers.
Consumers Must Know and Assert Their Rights
As a consumer in California, you have the right to decide how and when your personal information is used. If a company violates the terms of the CPRA, it’s time to talk to an attorney and figure out what your next step is.
Have Your Rights Been Violated? Contact the Law Offices of Robin D. Perry & Associates
The attorneys at the Law Offices of Robin D. Perry & Associates are committed to protecting consumers from businesses that overstep the law and use consumers’ private information illegally. Let’s talk about your case and come up with a plan. Call us at 562-216-2944 or send us a message online to schedule a free case evaluation.
Attorney Robin D. Perry has been part of the Long Beach Community for over 25 years handling business litigation, employment litigation and advising, criminal defense, personal injury and code enforcement defense for businesses.
