It’s not the first time you hear about data breaches – you probably have listened to lots of them. For example, in 2018, Facebook went against the law of 50 million accounts. The largest social platform didn’t stop there. In 2019, they made a record of 540 million, which was exposed by Amazon servers.
And the worst is that data exploitation isn’t just affecting specific industries – it’s affecting tons of other industries. For example, over 106 million Capital One customers were affected when hackers gained access to their sensitive information in the United States and Canada. The same happened to Equifax when over 147 million American citizens were affected.
With this increasing rate of breaches, a study by the Pew Research Center has found out that close to 49 percent of American citizens now admit that their personal information is no longer safe as compared to the past five years.
Customers have now shown their disappointment, which has now forced many companies to revisit their privacy laws. California Consumer Privacy Act (CCPA) has now emerged. This law is believed to be the most comprehensive in the country, and it will take effect beginning the 1rst of July 2020. With this law, consumers can now have confidence in their personal information.
This Law Will Also Affect Non-California Businesses
Don’t let your guard down just yet if your SMB isn’t located around Golden State because you may still be forced to comply. For example, if you do business, have customers around California and meet one of the following, then you’ll have to abide by the CCPA laws:
- Your annual gross income exceeds $25 million
- Your institution benefits from shares, or you have individuals’ personal information exceeding 50,000.
- Fifty percent of your yearly revenue comes from the sales of consumers’ personal information.
And even if you don’t meet any of the above criteria, it’s just a matter of time, and you’ll find yourself trapped by the CCPA.
How this Law Gives Consumers Power Over Their Data
The CCPA will give individuals the freedom to monitor and protect their personal information. Below is how consumer rights have been grouped:
- Businesses must come out clear as to why they need your personal information – even if they want to use it to get a merchant business cash advance.
- Consumers will have the right to know what type of personal data was collected, where it originated, how it will be used, and how many people can access it.
- Consumers will have the right to deter organizations from selling their personal information to third parties.
- Consumers will now have the right to demand the removal of their personal information from businesses’ records.
- Businesses would be barred from charging consumers varying prices or refusing service even if a consumer practiced privacy rights.
AUTHOR BIO: As the FAM account executive, Michael Hollis has funded millions to get a merchant cash advance. His experience and extensive knowledge of the industry has made him finance expert at First American Merchant.