Person typing on laptop with digital icons of a lock and document checklist, symbolizing data privacy and compliance with the California Consumer Privacy Act (CCPA).

California Consumer Privacy Act Summary

Published On: June 23rd, 2025By Dillon Miller Ahuja & Boss, LLP

THE INFORMATION INCLUDED IN THIS BLOG POST IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE ADVERTISING, A SOLICITATION, OR LEGAL ADVICE, AND SHOULD NOT REPLACE YOUR CONSULTATION WITH A LAWYER CONCERNING YOUR PARTICULAR NEEDS.

Data privacy has become one of the most important legal and operational issues for businesses today. With increasing concerns around how personal information is collected, stored, and shared, states like California have taken the lead in setting new standards for consumer protection.

This summary is designed to give a clear overview of what the California Consumer Privacy Act (CCPA) is, why it matters, and what it could mean for your operations moving forward.

What Is the California Consumer Privacy Act (CCPA)?

The California Consumer Privacy Act (CCPA) is a state law that gives California residents more control over their personal information. It requires certain businesses to disclose what data they collect, how it’s used, and who it’s shared with. The law also gives consumers the right to access, delete, or opt out of the sale of their data.

The CCPA applies to for-profit businesses that operate in California and meet at least one of the following criteria:

Have annual gross revenues over $25 million
Buy, sell, or share personal information of 100,000 or more consumers or households
Derive 50% or more of their annual revenue from selling personal information

This law applies even if a business is based outside of California, as long as it collects data from California residents. It’s part of a broader push for consumer rights and business accountability in the digital age.

Working with a qualified attorney can help businesses determine if the CCPA applies to them and how to prepare for compliance. Many companies choose to consult with an attorney to review their policies, update their data practices, and minimize legal risks.

Key Provisions of the CCPA

The California Consumer Privacy Act outlines several rights for consumers and responsibilities for businesses. Understanding these key provisions is critical for any company that handles personal data.

Consumer Rights Under the CCPA

1. Right to Know
Consumers can request that a business disclose the categories and specific pieces of personal information it collects, uses, or sells.

2. Right to Delete
Consumers can request that a business delete their personal information, with some exceptions.

3. Right to Opt Out
Consumers have the right to direct a business not to sell their personal information.

4. Right to Non-Discrimination
Businesses cannot discriminate against consumers who exercise their privacy rights, such as by denying services or charging different prices.

California Consumer Privacy Act (CCPA) overview with key provisions, emphasizing consumer rights and business responsibilities, set against a red and white background.

Business Obligations

Provide clear and accessible privacy notices at the time of data collection
Set up processes for verifying and responding to consumer requests
Offer a “Do Not Sell My Personal Information” link on their website if applicable
Ensure contracts with third-party service providers include specific privacy provisions

These requirements apply to businesses across industries. If you’re unsure whether your company is in compliance, it’s best to consult with an attorney or law firm experienced in data privacy.

CCPA vs. CPRA: What Changed?

In 2020, California voters approved the California Privacy Rights Act (CPRA), which expanded and amended the California Consumer Privacy Act (CCPA). Often referred to as “CCPA 2.0,” the CPRA introduced new consumer rights, clarified existing obligations, and created a dedicated enforcement agency.

Key Updates Under the CPRA

New Category of Sensitive Personal Information
Businesses must give consumers additional options for limiting the use of sensitive data, such as Social Security numbers, precise geolocation, racial or ethnic origin, and health information.
Expanded Consumer Rights
The CPRA adds the right to correct inaccurate personal information and to limit the use of sensitive personal data.
Stronger Enforcement
The law created the California Privacy Protection Agency (CPPA) to oversee enforcement, conduct audits, and issue penalties.
Tighter Restrictions on Data Sharing
The CPRA introduces more detailed requirements for contracts with service providers, contractors, and third parties.
Longer Data Retention Rules
Businesses must disclose how long they retain data and cannot keep personal information longer than necessary.

Woman smiling while using a laptop in a modern office setting, representing business compliance and data privacy discussions related to the California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA).

Compliance Tips for Businesses

Whether you’re a small business or a growing tech company, here are key steps to help you comply with the law.

1. Conduct a Data Inventory

Start by mapping out what personal information your business collects, where it comes from, how it’s used, where it’s stored, and who it’s shared with. This inventory is critical to responding to consumer data requests and ensuring your privacy notices are accurate.

2. Update Privacy Policies

Ensure your privacy policy clearly explains:

The categories of personal information you collect
How you use that information
Consumers’ rights under the CCPA and CPRA
How users can submit data access or deletion requests
Whether you sell or share data with third parties

Your policy should be easy to find, easy to read, and updated at least once every 12 months.

3. Build a Process for Handling Consumer Requests

Create systems that allow consumers to:

Access their data
Request deletion
Opt out of data sales or sharing
Correct inaccurate information

These processes should include identity verification steps to prevent fraud or unauthorized access.

4. Train Employees

Anyone responsible for handling consumer data or responding to requests must be trained on CCPA/CPRA requirements. This includes customer service, marketing, IT, and legal teams.

5. Review Third-Party Agreements

Update contracts with vendors, service providers, and contractors to include required CCPA/CPRA language. Make sure these parties handle data in ways that comply with California law.

6. Limit Data Collection and Retention

Only collect data that’s necessary for your business operations and retain it only for as long as you need it. The CPRA now requires businesses to disclose retention periods and avoid indefinite storage.

7. Add “Do Not Sell or Share” Links (If Applicable)

If your business sells or shares personal information, you must provide a clear and accessible way for consumers to opt out. This typically includes a link titled “Do Not Sell or Share My Personal Information” on your homepage.

Privacy policy guidelines on data collection, use, consumer rights under CCPA and CPRA, and third-party data sharing, set against a red background with circular design elements.

Why Compliance Matters

Whether you’re collecting emails for a newsletter or managing complex user data across platforms, the risk of non-compliance is real. Fines, lawsuits, and reputational damage can be avoided by taking the right steps early. That means understanding your obligations, building strong internal systems, and seeking legal guidance when needed.

If you’ve been searching for a trusted business law attorneys with experience in data privacy, DMABis here to help. Our team can assess your current practices, help you build a compliant data policy, and guide you through the evolving legal landscape. Contact us today.