Companies have gone to great lengths to acquire consumer data for the purpose of unwanted marketing and sales efforts. The California Privacy Rights Act (CPRA) and the California Privacy Protection Agency (CCPA) are privacy laws that have given consumers more control over their personal data and how it is collected and used. The most recent change has been made on January 1, 2023, as CPRA has replaced the CCPA and is set to bring significant changes that will impact how advertisers and marketers target their efforts.
CPRA’s added layer of consumer protection regulations will limit the processing, deletion, and sharing of personal information of any California consumers. This includes employees, job applicants, contractors/freelancers, suppliers, and B2B prospects. With this legislation now in effect (full enforcement will start on July 1, 2023) companies and marketers are already taking steps to ensure compliance.
What are the changes?
Marketers are now paying close attention to how these changes are affecting companies. The recent $1.2 million fine issued to Sephora for CCPA violations in data collection and processing serves as a warning of the strict penalties for noncompliance.
Companies are now adhering to new notice content requirements and passing on deletion requests to third parties. Marketers are regulating personal information transferred to comply with data security requirements. Some of the changes include:
- Personal information, with same protections as consumer data
- Expanded consumer data rights
- Right to know, right to delete, and right to opt-out
- Passwords and security questions protection
- Prohibiting numerous attempts if someone declines
- Stricter penalties for violating the data rights of children under the age of 16
These changes impose new requirements when managing service providers and require contracts for the transfer of personal information to third parties.
How will this affect advertisers?
The CCPA has granted California residents the right to opt out of the sale of their personal information, but the CPRA has taken a step further by introducing a new specific language allowing residents to opt out of having their data “shared” with advertisers.
This means that California residents will have even more control over their personal information and the ability to protect it from being used in targeted advertising systems.
Privacy professionals believe that the new CPRA will set a new tone for digital advertising and publishing that will change the way advertisers choose to advertise.