If you are subject to the California Consumer Privacy Act (CCPA) as amended by the California Privacy Right Act (CPRA), you must publish a compliant privacy policy that meets specific requirements.
Below, I explained what a CCPA privacy policy needs to include and provide a CCPA privacy policy template for you to use.
- The CCPA Explained
- CCPA Privacy Policy Requirements
- CCPA Notice to Consumers Requirements
- Who Needs a CCPA-compliant Privacy Policy?
- CCPA Privacy Policy vs. Other Data Privacy Law Requirements
- CCPA Privacy Policy Checklist
- Examples of CCPA Privacy Policies
- CCPA Privacy Policy FAQ
- Sample CCPA-Compliant Privacy Policy Template [Free Download]
- Summary
The CCPA Explained
The CCPA is California’s data privacy law and has transformed how businesses collect their website users’ data since it took effect in January 2020.
In 2023, the California Privacy Rights Act (CPRA) officially amended aspects of the CCPA, including establishing new thresholds for businesses and additional consumer protections.
Businesses that service California residents must comply with the CCPA’s mandated data protection rules or face harsh penalties for noncompliance.
CCPA Privacy Policy Requirements
A general privacy policy describes to consumers how and why their personal information is collected, stored, and shared, but the CCPA has specific requirements that must be included.
In this next section, I summarize the main clauses you must include in your CCPA-compliant privacy policy.
1. Consumer Rights
The CCPA has conferred specific rights to consumers. These rights concern the control consumers maintain over their personal information and include the following:
Right To Know
A consumer has the right to request that the business discloses to them what personal data they collected, used, shared, or sold about them. Further, the reason why the business used personal information must also be given.
When asked, businesses must provide the consumer with this information for the prior 12-month period.
Right To Delete
A consumer has the right to request that a business delete any of the personal information (with a few exceptions) collected from the consumer. Once notified, the business has 45 days to respond. Response can be prolonged up to 90 days under certain conditions.
Right To Opt-Out
A consumer has the right to request that a business stops selling their personal data. This is also called the right to “opt-out.” After receiving this request, the business cannot sell the consumer’s personal data without receiving consent.
The opt-out request has a lifespan of 12 months. After that period, a business can ask the consumer to opt-in again.
How it pertains to minors
A business is not permitted to sell a consumer’s personal information if the business has “actual knowledge” that the consumer is under 16 years old. A business is only permitted to sell this information if the consumer “opted-in.”
Under the CCPA, consumers between the ages of 13 and 16 can opt-in to the selling of personal information, while parents or guardians must opt-in for a child under 13.
Right To Non-Discrimination
A business cannot discriminate against a consumer because the consumer exercised a right given to them under the CCPA.
For example, if a consumer exercises their right to opt-out of the selling of their personal information, the business cannot offer substandard service or substandard products to the consumer. Nor can a business charge different prices or deny service because a consumer exercised this right.
2. “Do Not Sell or Share My Personal Information” Link
The right to opt-out is conferred to consumers under the CCPA. A consumer can request that a business not sell their personal information to third parties.
The business must include a “Do Not Sell or Share My Personal Information” link to provide consumers with an opportunity to exercise this right on your website and as part of the CCPA privacy policy.
The link must meet the following guidelines:
- Be “clear and conspicuous”
- Be easily accessible on the business’s website or app
- Take the consumer to a webpage where they are allowed to opt out of the sale or sharing of their personal information
3. Personal Information Collection
You must must disclose what personal or sensitive personal information you collect in your privacy policy.
Under the CCPA, personal information is defined as information that identifies, relates to, describes, or could be linked or associated with a consumer or household, and can include the following:
- Name, address, and personal or online identifiers
- Employment information
- Education information
- IP address
- Browsing history
- Search history
Sensitive information is subject to stricter requirements under the CCPA and you must obtain active consent from consumers to collect and use it.
4. Sharing and Selling of Personal Information
In furtherance of consumers’ ability to take active steps to control their personal information, the CCPA notice requirements mandate that businesses disclose what categories of personal information they share or sell with third parties and why.
CCPA Notice to Consumers Requirements
The CCPA mandates you to provide a notice of collection to consumers, explaining what personal information you collected from them in the past 12 months.
Companies must disclose the following from the previous 12 months:
Categories of Personal Information
Companies must disclose the categories of personal information they collected about the consumer. The categories include the following:
Category | Examples |
Identifiers | Names, personal identifiers, online identifiers, government or state identification numbers, etc. |
Categories of personal information described in subdivision (e) of Section 1798.80 | Social security number, physical characteristics or description, passport number, driver’s license or state identification card number, insurance policy number, bank account number |
Characteristics of classifications protected under California state law or U.S. federal law | Race, color, national origin, religion, sex, age, disability, citizenship status, genetic information, marital status, medical conditions, or sexual orientation |
Any commercial information purchased, obtained, or considered | History of past transactions |
Biometric information | Individual’s physiological, biological, or behavioral characteristics, such as DNA, fingerprint, or retina scans |
Internet network activity information | Browsing history, search history, and information about user’s interaction with the website, app, or advertisement |
Geolocation Data | IP address |
Sensory Information | Audio, electronic, visual, thermal, and olfactory information |
Professional or employment information | Employment and job history |
Education information that is not publicly available | Attendance and exam information |
Inferences drawn from any of the information above to create a consumer profile | Preferences, characteristics, psychological trends, predispositions, behavior, attitudes, intelligence, abilities, and aptitudes |
If there is some personal information collected that does not seem to fit in any category, it must still be disclosed to be fully compliant.
Sources of Personal Information
Businesses must also disclose the sources from which personal information is collected. Examples of common sources include:
- Consumer
- Cookies
- Social media
- Advertisements
- Third parties
Business Purpose
Businesses must disclose the business purpose of collecting or selling personal information of California residents.
Categories of Third Parties
Lastly, businesses must disclose the categories of third parties with whom the personal information is shared. Some examples of third parties include:
- Educational institutions
- Consumer services
- Insurance services
- Business services
All of this information does not have to be given more than twice to a consumer in a 12-month period.
Policy Update
The CCPA requires that every 12 months, your privacy policy be updated.
Who Needs a CCPA-compliant Privacy Policy?
For-profit businesses that service California residents and and meet one of the following criteria need a CCPA-compliant privacy policy:
- Has a gross revenue of over $25 million annually
- Buys, receives, or sells the personal information of 100,000 or more California residents, households, or devices
- More than half of its yearly revenue is derived from selling or sharing the personal information of California residents
Do Businesses Outside of California Need a CCPA Privacy Policy?
Yes, businesses outside of California may still need to have a CCPA-compliant privacy policy.
The focus of the CCPA is not on California businesses; instead, the focus is on protecting California residents. Therefore, any business that collects and processes the personal information of California residents falls under the purview of the CCPA.
This means a business across the world in Asia or Europe could be subject to the CCPA if they collect the personal information of Californians.
CCPA Penalties for Noncompliance
The CCPA provides two mechanisms to penalize a violation: private and state.
Private Penalties
The CCPA (Section 1798.150) confers a private right of action to Californian residents and consumers.
This private right of action is the right to initiate civil action against a business that failed “to implement and maintain reasonable security procedures and practices” which caused the consumer to suffer damages.
Damages recovered are set in the amount of at least $100 and not more than $750 per consumer per incident or actual damages, whichever is higher.
State Penalties
A business can also be held liable by the state (Section 1798.155).
The California Attorney General can hold a business civilly liable for no more than $2,500 per violation or $7,500 for each intentional violation.
These penalties can accumulate quickly.
For example, if a business violated the CCPA rights of 10,000 consumers and the injured consumers bring a civil suit, they could be liable for $7,500,000. If the California AG brings the suit, the business could face penalties of $25,000,000 or $75,000,000.
CCPA Privacy Policy vs. Other Data Privacy Law Requirements
The CCPA is not alone in the data privacy legal sphere. Other countries have enacted similar laws to protect the personal information of their residents.
This section will cover the CCPA and other data privacy laws and highlight some major differences and similarities between them.
First, the other major data privacy laws include the following:
Data Privacy Law | Year | Region/Country | Consent | Sector |
General Data Protection Regulation (GDPR) | May 2018 | European Union | Yes | Public and Private |
Lei Geral de Proteção de Dados Pessoais (LGPD) | August 2020 | Brazil | Yes | Public and Private |
Protection of Personal Information Act (POPIA) | June 2021 | South Africa | Yes | Public and Private |
Personal Information Protection law (PIPL) | November 2021 | China | Yes | Private |
Personal Information Protection and Electronic Documents ACT (PIPEDA) | April 2000 | Canada | Yes | Private |
Consent
One of the main differences between the CCPA and the other data privacy laws — like the GDPR — is user consent.
Most other data privacy laws mandate that you obtain user consent before you collect any of their data.
The CCPA, on the other hand, does not mandate consent before data collection unless it’s sensitive data or comes from a known child.
Otherwise, the CCPA gives consumers the right to opt out of data collection.
Who Is Protected?
Under the CCPA, only California residents are protected. A California resident is one who lives permanently in California and is not there for a temporary purpose.
The GDPR, on the other hand, protects anyone who resides the European Union, Island, Norway, Lichtenstein or Switzerland.
For example, a student studying abroad for a semester is temporarily in the EU, so they are covered under the GDPR. Residency does not matter — being located inside the EU suffices to be covered under the GDPR.
The other data privacy laws are more similar to the GDPR. For example, the LGPD protects individuals located in Brazil and doesn’t differentiate between permanent and temporary residents.
Thus, the CCPA protects a much narrower group of people.
What Businesses Are Affected?
Any business — regardless of location — can be subject to the CCPA if it’s a for-profit company that processes data of California residents and meets the criteria I outlined in an earlier section.
The GDPR, on the other hand, applies to any entity that processes personal data. This includes all for-profit companies, non-profit companies, and even governmental bodies if they process data of individuals in the EU.
The POPIA ad LGPD also apply to both the private and public sectors.
On the other hand, PIPL and PIPEDA apply only to the private sector, like the CCPA.
CCPA Privacy Policy Checklist
Here’s a checklist to cross-reference your new privacy policy or update your old privacy policy to ensure you are in compliance with the CCPA.
☐ | Have a compliance program to ensure your privacy policy is sufficient under CCPA |
☐ | Clearly label your privacy policy and place it conspicuously on your website |
☐ | Have a section explaining your consumer’s rights under the CCPA |
☐ | Have a notice of collection section |
☐ | Have the “Do Not Sell My Personal Information” link |
☐ | Have a system in place to update your privacy policy every 12 months |
Examples of CCPA Privacy Policies
This section will provide examples of CCPA privacy policy sections to help you become better compliant with the CCPA.
Chase Bank
Chase Bank Online Privacy Policy: Rights of Consumers Residing in California
Amazon
Amazon Privacy Policy: CCPA Personal Information Disclosure
Spotify
Spotify Privacy Policy: Third-party sources of Data Collection
Target
Target Privacy Policy: Business Purpose for Data Collection and Sale
CVS
CVS Privacy Policy: “Do Not Sell My Personal Information” Link
CCPA Privacy Policy FAQ
Here are common questions asked about CCPA privacy policy compliance.
Who does the CCPA apply to?
The CCPA applies to companies that collect the personal information of California residents and meet the CCPA definition of business. The CCPA does not apply to government agencies, nor does its jurisdiction include charities or other non-profit organizations.
Do I need to have a CCPA-compliant Privacy Policy?
If your company matches the definition of a “business” and collects and processes data of Californian residents, then you probably fall under the CCPA. To avoid the harsh penalties listed in the law, you should create a CCPA-compliant privacy policy or update your privacy policy to reflect the CCPA guidelines and requirements.
How many categories of personal information are under the CCPA?
There are 11 categories of personal information under the CCPA. They include:
- Identifiers
- Categories of personal information described in subdivision (e) of Section 1798.80
- Characteristics of classifications protected under California state law or U.S. federal law
- Commercial information purchased, obtained, or considered
- Biometric information
- Internet network activity information
- Geolocation data
- Sensory information
- Professional or employment information
- Education information (not public)
- Inferences from any of the information to create a consumer profile
Note: Personal information does not include information that is publicly available, which includes information lawfully available from federal, state, or local government records.
How do I update my current privacy policy to be CCPA compliant?
You can update your current privacy to be CCPA compliant by following Termly’s CCPA Privacy Policy Checklist to ensure you are not missing any important requirements.
Where do I have to display my CCPA-required privacy policy?
Your privacy policy must be clear and comprehensive. Usually, this is at the bottom of a webpage. The section is typically titled “Privacy” or “Online Privacy Policy.” The privacy policy is usually a link or a pdf document. Make sure your privacy policy is posted conspicuously on your website so no issues arise where you are accused of failing to provide a privacy policy.
Sample CCPA-Compliant Privacy Policy Template [Free Download]
Expand the box below to view the sample CCPA-compliant privacy policy text. Copy and paste the text onto your site, or download the privacy policy template Word document.
Privacy Policy Template HTML
You can copy our privacy policy template HTML code or download it using the options below.