What is CPRA?

The California Privacy Rights Act (CPRA) represents an extension and intensification of the California Consumer Privacy Act (CCPA), effective from January 1, 2023. The main results and impacts observed following the CPRA’s implementation are summarized below:

• Expansion of Consumer Rights:
  CPRA introduces four new consumer rights:

  1. Right to Correct Inaccurate Personal Information
  2. Right to Limit Use and Disclosure of Sensitive Personal Information
  3. Right to Opt-Out of Automated Decision-Making Technology
  4. Right to Access Information About Automated Decision-Making
     These rights align California’s privacy regime closer to the EU’s GDPR, enhancing individuals’ control over their data.

• Broadened Scope of Regulated Businesses:
  The CPRA reduces the threshold for businesses subject to compliance by:

  • Lowering annual consumer data processing minimums
  • Including businesses that generate revenue from sharing (not just selling) personal information
  • Expanding the definition of “business” to include certain joint ventures and partnerships
    This broadening increases the number of entities required to implement robust privacy controls.

• Enhanced Accountability for Use of Third Parties:
  The law imposes new contract requirements and due diligence obligations on businesses sharing personal data with third parties, service providers, and contractors. Businesses must ensure these parties uphold equivalent privacy protections, creating a cascading compliance effect.

• Sensitive Personal Information Category:
  A new category for “sensitive personal information” (SPI) is introduced, including data such as Social Security numbers, precise geolocation, health, and biometrics. Consumers have explicit rights to limit SPI use and disclosure, marking a significant shift toward more granular privacy controls.

• GDPR-like Consent and Transparency Requirements:
  CPRA mandates clearer consent mechanisms, improved transparency in privacy notices, and heightened obligations for processing sensitive data. These requirements reflect converging standards between California law and GDPR principles.

Overall, the CPRA compels businesses operating in California to implement stricter privacy management practices, adopt enhanced consumer controls, and prepare for increased regulatory scrutiny. The law’s GDPR-like elements signal a trend toward harmonization of US and European privacy frameworks.