CCPA vs CPRA: Understanding the Key Differences in California’s Data Privacy Laws

California is a leader in data privacy legislation, with the California Consumer Privacy Act (CCPA) and its successor, the California Privacy Rights Act (CPRA), shaping how businesses handle consumer information. As businesses strive to comply, many ask, “What does CPRA stand for, and how does it differ from the CCPA?”

This article provides an in-depth look at CCPA vs CPRA, highlighting their differences, compliance thresholds, and impacts on businesses. We also explore what personal information under the CCPA and CPRA is, who these laws apply to, and how businesses can adapt to California’s evolving data privacy landscape.

What Does CCPA Mean?

The California Consumer Privacy Act (CCPA) is a groundbreaking data privacy law that went into effect on January 1, 2020. It grants California residents enhanced rights over their personal data, such as:

1. Access Rights: Consumers can request access to the personal information businesses collect about them.
2. Deletion Rights: Consumers can request that their personal data be deleted.
3. Opt-Out Rights: Consumers can opt out of the sale of their personal information.

The CCPA marked a significant shift in data privacy, requiring businesses to provide transparency about data collection and usage.

What Is CPRA?

The CPRA builds on the foundation of the CCPA, introducing stricter requirements and expanded rights for California residents. Often referred to as “CCPA 2.0,” it became enforceable on January 1, 2023. CPRA has added a new focus on sensitive personal information and introduced a dedicated enforcement agency, the California Privacy Protection Agency (CPPA).

The CPRA does not entirely replace the CCPA but rather builds upon it, refining and extending the existing framework. Below is a detailed CCPA/CPRA comparison chart highlighting the key differences:

Key enhancements under the CPRA include:

• New consumer rights, such as the ability to correct inaccurate personal data.
• Expanded opt-out options to include data sharing for behavioral advertising.
• Higher compliance thresholds for businesses handling sensitive personal information.

CCPA vs CPRA: Key Differences

The CPRA does not entirely replace the CCPA but rather builds upon it, refining and extending the existing framework. Below is a detailed CCPA/CPRA comparison chart highlighting the key differences:

Key Changes Under CPRA:

1. Sensitive Personal Information:

CPRA defines sensitive data to include race, religion, sexual orientation, and biometric data. Consumers can limit the use and disclosure of this data.

2. Expanded Scope of Opt-Outs:

Under CPRA, consumers can opt out of both data sales and sharing for cross-context behavioral advertising.

3. Enhanced Enforcement:

The CPPA is a dedicated enforcement agency with broader powers than the Attorney General under the CCPA.

4. Data Minimization Requirements:

Businesses must collect, use, and retain only the data necessary for specific purposes.

Does CPRA Replace CCPA?

The CPRA does not replace the CCPA; it amends and enhances it. Together, they create a more robust framework for consumer data privacy. Businesses must comply with both laws, considering CPRA as an extension of the rights and obligations established by the CCPA.

What Businesses Must Comply with CPRA?

CPRA applies to businesses meeting the following criteria:

• Annual gross revenue exceeding $25 million.
• Handling personal data of 100,000 or more consumers or households annually (increased from 50,000 under CCPA).
• Deriving 50% or more of annual revenue from selling or sharing consumer data.

Businesses that were exempt under CCPA may now fall under CPRA’s scope due to its expanded thresholds and definitions.

How CCPA and CPRA Impact Businesses

The introduction of CPRA has significantly increased compliance obligations for businesses. Key areas of impact include:

1. Data Inventory and Mapping: Businesses must have a detailed understanding of the personal data they collect, process, and share. This includes sensitive personal information and cross-context behavioral data.
2. Enhanced Consumer Rights: Companies must honor new rights, such as data correction and limiting sensitive data use. This requires updating internal processes to handle these requests efficiently.
3. Contractual Requirements: Contracts with third-party service providers must include explicit terms about data usage, retention, and deletion under CPRA guidelines.
4. Transparency: Privacy policies must clearly disclose:
   
   
   • Categories of sensitive personal information collected.
   • Data retention policies.
   • How consumers can exercise their rights under CPRA.

Conclusion

The CCPA vs CPRA comparison reveals a significant evolution in California’s data privacy landscape. By understanding the difference between CCPA and CPRA and implementing the necessary changes, businesses can navigate these regulations while building trust with consumers.

As privacy laws continue to evolve, staying informed and proactive will be key to maintaining compliance and protecting consumer data.