What is the California Consumer Privacy Act?

The CCPA or California Consumer Privacy Act is a law recently enacted in California which extends privacy protections for residents.

While the act is big news for those living within California, many of us outside the state had not heard about the law until it recently went into effect. 

Specifically, the law requires businesses to disclose what personal information they collect and how that information will be used in relatively clear language. The CCPA also requires businesses to provide easily accessible ways to opt-out of having their information collected. 

Lastly, the law provides for Californian citizens to ask for the data which a company has collected on that person, what it has been used for, and have that information deleted upon request. 

Does The Law Apply To You?

The bad news about the law is that it does not only apply to businesses based in California. It can be applied to any businesses collecting or selling data of Californians. 

The good news is that the CCPA provides for exceptions for smaller businesses who do not primarily collect or sell data. To be affected by the law, your business must:

  • Earn more than $25 million per year.
  • Collect data on more than 50,000 persons.
  • Make more than half of its revenue from the sale of personal data.

What is unclear is how this will apply to the number of social networks based in California who sell targeted both inside and outside California. 

How Facebook and Instagram are Responding

Facebook (which owns Instagram and operates a large portion of Instagram’s advertising) has announced a new feature which automatically limits the data used to target ads – especially those targeted to Californians.

The Limited Data Use flag acts as a pixel to control how Californians’ personal information is collected and used. This means businesses can easily implement the flag for campaigns targeted in the state. 

To allow time for businesses to implement the flag, the company is automatically limiting data for a limited time on all events in California by default.

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