Data security and data privacy regulations are increasing in number, strictness and complexity year upon year. For many governing bodies, the necessity for data protection and the privacy of the individual is a major priority. Any organization that deals with sensitive information (Personally Identifiable Information or other confidential data) is likely to fall under one or more of these regulations. This article will summarize both the CCPA and the GDPR, and explain the key differences and similarities between them.
What is the California Consumer Privacy Act (CCPA)?
The California Consumer Privacy Act (CCPA), which came into effective on January 1, 2020, is a landmark data privacy legislation that applies to most businesses that collect and process personal data of California residents. The CCPA gives California residents a significant amount of control over their personal data, including the right to know what information is collected, how it is used, and how it is shared. The CCPA is similar to the European Union’s General Data Protection Regulation (GDPR), which grants EU residents enhanced transparency and control over their personal data and applies to businesses in and outside of the EU.
Under the CCPA, California residents have specific rights, including the right to know about personal information collected and how it is used and shared, the right to delete personal information (with some exceptions), the right to opt-out of the sale or sharing of personal information, and the right to non-discrimination for exercising CCPA rights. Additional rights, such as the right to correct inaccurate personal information and the right to limit the use and disclosure of sensitive personal information, were added shortly after the initial publication.
Businesses must take several steps to comply with the CCPA, including responding to consumer requests to exercise their rights and providing notices that explain their privacy practices. The CCPA applies to a wide range of businesses, including data brokers, and is considered a key component of data protection legislation in the United States.
What is the General Data Protection Regulation (GDPR)?
The EU General Data Protection Regulation (GDPR) is a widely recognized regulation that has revolutionized the way organizations handle personal data. The GDPR is applicable to any organization that processes or collects data related to individuals in the European Union, making it a global phenomenon. The regulation, which came into effect on May 25, 2018, is designed to ensure the protection of personal data and impose severe penalties on those who violate its standards, including fines of up to €20 million or 4% of global revenue, whichever is greater.
Similarities Between CCPA And GDPR
The CCPA and the GDPR share common goals, namely to safeguard individuals’ privacy and personal data, while promoting transparency and accountability in the use of personal information. This shared objective is evident in the similarities between the two regulations. CCPA’s development was influenced by GDPR, which was the first law to grant consumers rights to their personal information, resulting in similar protocols and regulations. Both the CCPA and GDPR aim to protect the personal data and privacy of real individuals, not just corporate entities.
Examples of personal data covered under both regulations include names, dates of birth, locational information, IP addresses, and cookie identifiers, among others. Both regulations also apply to organizations worldwide, regardless of their geographical location, as they collectively aim to protect the data of diverse populations. Common requirements under both regulations include maintaining a secure data inventory, responding to consumer requests, and disclosing a data privacy policy.
Both laws give individuals the right to know what personal data is being collected and used, and how it is processed. Below are key areas where consumer rights are protected under both laws:
- Right to access: Individuals have the right to access their personal data and request copies of their personal information.
- Right to opt out: Individuals have the right to opt out of having their personal data processed by an organization.
- Right to portability: Individuals have the right to request their personal data in a portable, easily usable format.
- Right to erasure: Individuals have the right to request the deletion of their personal data.
Both the CCPA and the GDPR demand transparency from organizations, requiring them to be open about their data collection and processing practices. Both laws regulate businesses that collect and process personal data, holding them accountable for their actions. Additionally, both laws require organizations to obtain explicit consent from individuals before processing their personal data. Finally, both laws provide for enforcement mechanisms, including fines and penalties, to ensure compliance.
Differences Between CCPA and GDPR
Anyone who is familiar with the ins and outs of GDPR will notice some stark similarities with that of the CCPA. The CCPA was modelled, to some extent, on the GDPR, but there are some important distinctions. It would be impossible to list them all here, but the most important points are summarized below:
- Type of law: CCPA is a statutory law, while GDPR is a regulatory law.
- Subjected entities: CCPA applies to for-profit organizations that collect personal data from California residents, while GDPR applies to organizations that collect data on individuals within the EU and EEA.
- Type of data covered: Both laws have similar definitions of personal data, but CCPA covers a broader range of data, including biometric data and inferences from other personal information.
- Disclosure to users: Both laws require organizations to disclose how they handle personal data, but GDPR requires more information, including the length of data retention and the right to withdraw consent.
- Rights of users: Both laws provide users with certain data rights, including the right to access, correct, and delete personal data. CCPA also provides the right to opt-out of the sale of personal information, while GDPR provides the right to opt-out of data processing.
- Right to opt-out: CCPA allows businesses to collect personal information from users as long as they provide an opt-out choice, while GDPR requires explicit consent before collecting data.
- Age of consent: CCPA requires parental consent for children under 13, while GDPR requires consent for children under 16.
- Cookie control: CCPA does not require explicit consent for storing cookies on devices, while GDPR requires explicit consent.
- Security requirements: CCPA does not have specific security requirements, while GDPR requires organizations to implement necessary technical and organizational measures to ensure data security.
- Fines and penalties for non-compliance: CCPA has fines of up to $2,500 per violation, while GDPR has fines of up to €20 million or 4% of annual global turnover, whichever is higher.
- Enforcing authority: CCPA is enforced by the California Attorney General, while GDPR is enforced by the EU Commission, EDPB, and data protection authorities of EU Member States.
How Lepide Helps Achieve Compliance
The Lepide Data Security Platform offers comprehensive support for both GDPR and CCPA compliance by providing a robust suite of features to help organizations effectively manage and protect sensitive data. This platform provides real-time monitoring of user behavior, detecting anomalies and alerting administrators to potential security threats. This includes spotting unauthorized access and reversing excessive permissions to prevent data breaches. Instant notifications are sent when users make changes to data, which allows organizations to quickly respond to potential security incidents. Furthermore, the platform offers hundreds of pre-set compliance reports that are specifically tailored to regulations such as the GDPR and CCPA. Finally, Lepide’s advanced event detection capabilities allow for automated response to events that meet a predefined threshold condition, such as repeated login attempts, or when multiple files are downloaded, renamed or encrypted, within a given timeframe.
If you’d like to see how the Lepide Data Security Platform can help you comply with both the CCPA and the GDPR, schedule a demo with one of our engineers.