With the California Consumer Privacy Act (CCPA) set to be indoctrinated January 1st, 2020, businesses that are operating in California that fall under rule of law must take action. Asking the question “How Does CCPA Affect Me?” should be the first step Ecommerce businesses are taking to fully understand the new Californian marketplace they will be operating in.
While some businesses will not be required to operate under the strict parameters of the CCPA, many more will – and regardless, the Californian law will change how you compete in the online marketplace, as surely some of your competitors will be affected.
If you are a business with headquarters/operations mainly inside of California, complete the following checklist to gain insight into how your businesses will be affected by CCPA.
Businesses inside California: CCPA Checklist
Am I affected?
- Do I have annual gross revenue over $25 Million?
- Do I possess the information on 50k + Californian households, consumers, or devices?
- Do I earn 50% or more of revenue from selling customers’ information?
If you answered yes to any of these questions, you will be under CCPA’s rule of law. *The difficulty in this section is identifying the many portals in which customers interact with your business. To answer this to the extent required by law, businesses need to be able to identify individual people and the devices they use. Our Global Privacy Manager is a great solution.
Will those around me be affected?
Due to the massive scope of CCPA, many businesses will be directly affected, so business owners must think about who they share a table with.
- Do I compete with any firms who would answer yes to the above questions?
- Are many of my competitors subject to the CCPA? If so, will they adopt any practices that set a new standard in the industry? If not, is there room to take advantage and build new competitive edges?
- Do I partner with any firms who would answer yes to the above questions?
- Are any of the organizations I work with, upstream or downstream, subject to the CCPA? If so, how will processes change as new standards are set? If not, are we really operating in our most efficient capacity?
- Do my customers buy from any firms who would answer yes to the above questions?
- Relative to my competitors, will any of my customers be served differently elsewhere in the market? If so, will my business be hurt as customers leave for competitors who treat them better? If not, is there room to strengthen my position in consumers’ minds?
The first step to navigating the new competitive landscape CCPA will bring forth is truly understanding how the law will affect your business.
Here’s the thing about CCPA; regardless if the law directly affects you, it will change the marketplace around you. Click here to learn more.