Arizona resident Jonathan Koop is founder and CEO of Bankrupt Debt Acquisitions, based in Scottsdale. As a part of managing his business, Jonathan Koop is currently working toward his Receivables Management Association International certification (RMAI), which included taking a course on the new California Consumer Privacy Act (CPAA). The CPAA could potentially be the model on which the rest of the states base their laws as they relate to data collection and consumer rights.
The CPAA took effect in January 2020, and it outlines a number of consumer protections. First, it grants consumers in California the right to access personal data that businesses have gathered on them (identifying information, personal records, geo-location, biometric, etc.). Consumers also have the right to request that information be removed or deleted.
This law also requires that businesses inform their employees regarding the information that is being collected on them. Information that is covered includes online activity and mobile-tracking data. Employers also have to explain to their employees how this information is going to be used.
Parents also have some privacy protections as they relate to how information is collected about their children. Companies must obtain parental consent before selling or sharing the child’s information.
Finally, consumers also can take the initiative in determining whether their information is stored or collected. The law allows for consumers to request information collected about them be deleted, and consumers have the right to opt-out of providing businesses data.
Moreover, there are penalties for businesses that do not comply. If violations are intentional, companies can be fined $7,500, and for unintentional lapses, the fine is $2,500. The law also makes allowances for class action lawsuits to be brought against violators.
This law provides California residents with more autonomy in deciding whether they want to share their information. The rest of the country is expected to follow soon with their own versions of the consumer privacy act. Maine and Nevada have already enacted similar (albeit narrower) versions of the law.
Jonathan Koop 