California law illustrates several strategies small businesses can use to protect themselves and their customers from cybersecurity breaches. With digital threats constantly on the rise, it’s important for business owners to be aware of their legal protections and the requirements applicable to them.
Understanding the California Consumer Privacy Act (CCPA)
The California Consumer Privacy Act (CCPA) governs both data privacy and cybersecurity protocols. Small businesses that collect personal data are required to adhere to several practices, including:
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Disclosing data practices: Businesses must inform consumers about the collection, use, and sharing of personal information. Disclosures also cover what data is being collected and for what purpose.
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Offering data access and deletion: Consumers can request access to their data and ask for its deletion. Businesses must comply with these requests within a specific time frame.
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Providing an opt-out: Consumers have the right to opt out of having their personal information sold. As such, businesses have to provide a clear way for individuals to exercise this right.
Implementing reasonable security measures
Businesses are required to implement reasonable security procedures to protect sensitive information. Though the law does not define specific steps in this process, there are several practices which may be used to enhance data security. These include encrypting sensitive data, limiting data access to only authorized personnel, and keeping all software programs up to date. In addition, management should educate all staff members about these practices. This way, they can protect customer data and recognize attempted attacks.
Liability for data breaches
Under state law, businesses must notify their customers if a breach compromises their information. Failure to do so can result in fines and increased liability. To minimize risk, it’s important to have a response plan in place and regularly monitor activity to flag potential breach attempts.
Vigilance is key
Preventing data breaches calls for a proactive approach. With an in-depth understanding of legal requirements, though, California business owners can safeguard their data. Taking steps to address security concerns now can prevent costly issues from arising in the future.
