What Is California’s New Data Privacy Law, And Do Small Businesses Need To Comply?

By Sarah Giometti | Business

Oct 15
What Is Californias New Data Privacy Law And Do Small Businesses

If you run a small business in California, you may be wondering about the effects of California’s new data privacy law, the California Consumer Privacy Act (CCPA). This law was passed in 2018 and took effect on January 1, 2020, but enforcement only began in June of 2020.

Not sure what the CCPA is, why it matters, and if you have to comply with it? In this blog from Provaro Marketing, we’ll discuss everything you should know about the subject. Let’s get into it.

What Is In The CCPA? Understanding California’s New Data Privacy Law

The CCPA is a very broad and complex piece of legislation, but the laws and regulations contained within it concern six basic categories of consumer protections. Under the CCPA, consumers have the right to:

  1. Know what personal data is being collected about them
  2. Know whether or not their personal data is being sold or disclosed, and to which parties it is sold or disclosed
  3. Have the option to say no to the sale of their personal data
  4. Access personal data collected by a business or website
  5. Request that a business delete any and all consumer personal information they have collected about them
  6. Not be discriminated against for exercising their privacy rights

Overall, this legislation is similar to GDPR, a privacy act that passed in the EU a few years ago, and provides similar protections.


Fines and penalties for violating these principles include a fine up to $7,500 for each intentional violation and up to $2,500 for unintentional violations, as well as liability for data breaches in class-action lawsuits.

Most Small Businesses Don’t Need To Worry About The CCPA

There’s good news if you run a small business in California. While the CCPA does apply to any for-profit entity that collects consumer data and does business in California, it only applies to your business if you meet one or more of the following requirements:

  • A gross revenue that exceeds $25 million
  • You buy, receive, or sell the personal information of 50,000 or more consumers or households
  • Your business earns more than half of its annual revenue by selling the personal information of consumers

Unless you have a very large business or your business directly involves buying and selling consumer data, you’re unlikely to be affected by the CCPA. This means you won’t need to make any changes to how you do business.

Small Business Owners Can Relax – CCPA Affects Only Larger Companies

Chances are that you don’t have to worry about the new restrictions of CCPA, since it applies to larger companies and companies that exclusively operate in the selling and buying of consumer data.

If you have a small business in California, this legislation likely won’t affect you. We hope this guide has been helpful. Want more information about running your small business and marketing your products and services effectively? Contact us online, or give us a call at 707-595-7002 to set up an appointment with the team at Provaro Marketing.

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