Startups and the CCPA – Four Key Considerations
CCPA enforcement has begun in earnest, survey found that a shockingly large percentage of companies were not prepared for the California Consumer Privacy Act (“CCPA”) and its July 1, 2020 enforcement date. Startups often mistakenly believe they’re not subject to CCPA because they don’t meet the $25 million annual revenue threshold, however they may be in scope based on other metrics. If your startup hasn’t completed its CCPA compliance, you should:
- Review your data security and privacy protocols to ensure they’re reasonable per CCPA requirements.
- Provide a mechanism for consumers to make data subject access requests and opt out of the sale of their personal information.
- Prepare for privacy rules in other jurisdictions where you are or plan to do business (e.g., New York, Europe, Brazil, or other region).
Getting out in front of data privacy early in a startup’s lifecycle will enable the company’s ability to manage compliance in a scalable and effective way as the company grows. If you’re using Microsoft Office documents (or worse) to manage compliance, you’ll quickly find that these tools aren’t up to the task. And your investors (or potential investors) won’t be happy with this kind of approach. Due diligence reviews now typically include an evaluation of a company’s data privacy and protection protocols. This makes sense given the potential risk of noncompliance and the associated financial penalties that could cripple even the most revered of startups.
If your employees (or contractors) are working from home (and who isn’t nowadays?), the danger of an unintentional breach of data privacy by an employee or agent, theft of data or cyber-attack, has never been higher. Make sure you’re implementing appropriate protocols to manage this shift in workforce approach.
The financial penalties of noncompliance can be severe, and cripple a startup from both a penalty and financial resource perspective. Startups need to focus on growing their business, which is why Clym provides you with a cost-effective, scalable and flexible platform, that comes with plans starting at just $99/month (updated March 2023). Contact us today about how your startup can implement Clym to help manage your CCPA (and GDPR, and LGPD, and others) compliance from the start.