The Importance Of Privacy Policies
Why are privacy policies important?
Of course, even if you are not in one of the industries which mandate privacy policies, you may still benefit from creating one. By being open, honest, and transparent about your data policies, you are likely to build a reputation as a trustworthy organization among your customers. As you build trust with your customers, they are likely to continue returning to your business time after time.
Upcoming Changes to California Privacy Law
In an effort to better protect consumers from data misuse, the state of California recently passed the California Consumer Privacy Act (CCPA). This law goes into effect on January 1st, 2020 and will impact companies who conduct business in California or collect data on residents of the state and meet one of the following three criteria:
- Have annual gross revenues of more than $25 million.
- Derive more than 50 percent of their revenue from selling consumer data.
- Buy, sell, or share the personal information of more than 50,000 people each year.
The CCPA will require businesses which fit this description to provide consumers with information about the data they store, who they sell it to, the purpose of collecting it, and much more. Companies in violation of the law can be fined up to $2,500 per instance.
Semanchik Law Group
As a business attorney in San Diego, Nikki Semanchik has helped hundreds of local business draft privacy policies that are fully compliant with applicable regulations. If you need help creating a data handling policy for your organization or have questions about the upcoming changes to California law, please do not hesitate to get in touch. You can call (619) 535-1811 to set up a consultation.