What Digital Marketers Need to Know About CCPA Compliance
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What Does CCPA Mean for Advertisers?
Online privacy and security are a growing concern for many American consumers. The internet continues to evolve as do the potential security issues that come with it. Governments are attempting to balance the consumers' privacy rights and businesses' access to user information.
As such, one of the biggest changes in data privacy law is the California Consumer Privacy Act. It adds many new requirements that greatly impact digital marketing and the rules advertisers must follow.
Marketers and advertisers need to understand what the CCPA means for their business practices. It's crucial that you follow these rules and create data protection for your consumers.
Enzuzo helps growing eCommerce brands launch, scale, and manage personalized privacy experiences to engender customer trust. Everything you need to power data privacy is now in one simple platform.
What Does CCPA Mean for Advertising?
The California Consumer Privacy Act (CCPA) is a California law that can affect businesses throughout the country and even internationally. It's the state's effort to safeguard online privacy for California residents. The law is meant to increase transparency with regards to when personal data is collected and used by a business. Under this law, California residents are legally entitled to:
- Know if their data is sold to others
- Know who is buying that data
- Opt-out of having their data sold
- Know what personal data is or may be collected
- Access their personal data
- Require a business to delete any personal data
- Not suffer discrimination if they exercise any of these rights
- Additional protection from information collection if the individual is a minor
This law was signed in 2018 but was given a two-year grace period to let businesses get up to date with the new privacy rules. The new law took effect at the end of June 2020. Advertisers must comply with this law or face significant repercussions for violating consumer rights. To make sure your business is compliant, allow Enzuzo to work with you and create a customized data policy for your business.
What Does it Mean to be CCPA Compliant?
Your business is CCPA compliant when it follows all of the rules set forth in the law. CCPA compliance examples include, but are not limited to:
- Processes to obtain data sharing consent for minors under 13 from their parents or guardians and affirmative consent for minors aged 13 to 16
- Specified methods for consumers to submit data access requests
- A "Do Not Sell My Personal Information" hyperlink on the advertisers or businesses homepage
- Policies that limit requesting opt-in consent within 12 months after the initial opt-out
These are not the only requirements your business must meet. This can seem daunting on your own — especially for small eCommerce business owners or those with Shopify stores. Instead, you can trust Enzuzo to help you comply with the law with just a few clicks.
What Types of Businesses Need to Comply with the CCPA?
You may be wondering: do I have to comply with the CCPA? Not every business or advertiser is subject to the CCPA and its restrictions. The definition of a "business" to which the CCPA applies means it must meet at least one of the following:
- The business buys, sells, or receives the personal information of 50,000 or more households or consumers
- The business earns more than half of its annual revenue by selling consumer's personal data and information
- The business has an annual gross revenue of over $25 million
This means that many smaller businesses may not be required to comply with these guidelines. However, as soon as a business hits one of these criteria, they are automatically subject to the law. Many businesses fail to realize that they must comply and will receive major penalties as a result if they don't. You can be proactive and ensure you comply with this law.
What This Means for Marketers
Marketers are constantly looking for new ways to use new technologies to inform their thinking and use data-driven strategies to market to consumers. Targeted ads are one of the best ways to capture new business and consumer attention. However, the data needed to further these goals often implicates consumer privacy laws like the CCPA. Data privacy regulation continues to change and marketers need to be on top of these changes.
Businesses Outside of California
Many want to know: Does the CCPA apply to companies outside California? Even businesses outside of California may be subject to the CCPA protections. The law protects all California residents who access a website, app, or other technology that may collect their personal information. Considering the size of the Californian economy, your business will very likely see California shoppers. Marketers who want to reach these individuals need to be ready to comply with the CCPA protections.
Sales and Marketing to Customers and CCPA Compliance
If you're advertising to Californians, you may be subject to the CCPA. The internet can reach nearly every home, so it's quite likely that your marketing will reach into California. If you meet — or might meet — the criteria for the CCPA, you should ensure your privacy policies meet these strict requirements.
Understanding Business and CCPA Compliance
Digital marketing must always adapt to the constantly changing landscape of online business. The CCPA has a wide reach that very likely affects your business. Ensuring compliance can be difficult to do on your own. Instead of hiring a law firm or in-house counsel to deal with this complicated issue, your business can rely on the expertise and knowledge of Enzuzo.
Failure to follow the CCPA can result in significant sanctions, including:
- Intentional Violations: Fines as high as $7,500 per violation
- Unintentional Violations: Fines as high as $2,500 per violation
How Does the CCPA Affect Paid Advertising?
Advertisers continue to use personal data and other metrics to inform and target their ads. The CCPA restricts how this data may be used, to whom it may be sold, and requires businesses to provide an option to delete personal information. Compliance with these rules can be difficult to implement — especially for eCommerce businesses and advertisers who have little experience dealing with these legal complexities.
What You Can Do To Keep Your Marketing Business in Compliance
Companies can comply with the CCPA by establishing solutions that protect personal data and comply with California regulations. To do this, you can:
- Create customized privacy policies to protect your business
- Use mobile-friendly technology to comply with the CCPA
- Review your advertisements to determine if they meet the legal requirements
- Increase digital ad presence and collect data in accordance with the CCPA
- Follow data protection laws to avoid potential penalties and protect your bottom line
- Create cookie consent banners
- Set up data request workflows
How Can Enzuzo Help My Business Comply With the CCPA?
Enzuzo can help you comply with the CCPA by creating and managing personalized data privacies for your business and advertisements. These rules and laws are complicated, but we specialize in making sure you comply with the law. To do so, we can:
- Create customized legal policies
- Build and manage cookie consent banners
- Create opt-out links and language for your consumers
- Automatically update policies and sites to comply with current laws
- Use automatic country detection to determine what laws may apply to your advertising
- Provide GDPR and CCPA optimization
- Create compliance reporting systems
You can get easy privacy compliance in minutes. You can even get started for free to begin protecting your business and advertising. Let us help you comply with the CCPA.
Paige is the growth marketing lead at Enzuzo and host of The Living Lab podcast.