Businesses Outside California

Will CCPA Affect Me? For Businesses Outside California

The California Consumer Privacy Act (CCPA) is set to be indoctrinated on the first day of 2020, and this law has such expansive regulations that even businesses outside of California will be affected. Organizations all across the United States should be wary of the part CCPA will play in their business ventures, as the law will indirectly impact the everyday processes of many organizations not in-state.

Just because CCPA is governed only in Californian borders, does not mean it will not change the national market. Already we have seen laws appear in the news from Nevada, Pennsylvania, and Maryland to name a few. It is clear that the Californian Legislation has sparked many laws across the states, so businesses will either find themselves directly affected by one of these CCPA-inspired laws or operating in a marketplace with players who are.

If you are a business with headquarters/operations mainly outside of California, complete the following checklist to understand if your business will be impacted by CCPA

If you are a business with headquarters/operations mainly inside of California, click here to see if you will be affected by the law.

Businesses Outside California: CCPA Checklist

Am I affected?

  • Do I store the information of 50,000 or more Californian residencies, consumers or individual devices?
  • CCPA requires businesses to identify consumers in a very strict timeframe at every level.  Different consumers may live in different places using different devices. Remember, your customers may interact with your business through multiple different platforms, and each will be considered and individual device – regardless if it is the same customer. 
  • Am I “doing business” in California, with yearly gross revenues of $25m+, or revenue in excess of 50% generated from selling customers information?
  • The term “doing business” is very loosely defined by CCPA, and as such, is a very easy threshold for most businesses to meet. By looking at similar legislation
  • Do I own/operate any subsidiaries/entities in California?
  • If so, do they share any data with my business?

If you answered yes to any of these questions, you will be under CCPA’s rule of law.

Will those around me be affected?

Due to the large scope of CCPA, many of a business’s competitors will be directly affected by this law – so business owners must think about who they share the playing field with.

  • Would any of my competitors answer yes to the above questions?
  • Are any of my competitors subject to CCPA? If so, will this change their international strategy? Will they view this as an opportunity and enter the Californian market – or will they view this as a threat and leave the Californian market, giving my business room to develop new competitive edges?
  • Are any organizations in my business’ supply chain subject to CCPA?
  • Are any of my upstream/downstream partners subject to CCPA? if so, how will processes at my business change as a new standard is set? If not, are we missing out on any new economizing benefits the law may provide?
  • Do my customers interact with any businesses that may be subject to CCPA?
  • Will my customers be treated differently elsewhere in the marketplace? If so, will they begin to expect this treatment from my business? Are we able to give our customers this same treatment? If not, will they leave us for a competitor who treats them better?

The first step to understanding how your business may successfully navigate the CCPA landscape is to truly understand if your business will be affected.

Here’s the thing about CCPA; regardless if the law directly affects your business, it will transform the marketplace around you.

Click here to learn more.