How California's new privacy law affects businesses and consumers?

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California’s new privacy law, the California Privacy Rights Act (CPRA), went into effect on January 1, 2023. The CPRA is an update to the previous California Consumer Privacy Act (CCPA), which was enacted in 2020. The CPRA aims to give Californians more control over their personal data and to hold businesses accountable for how they collect, use, and share it.

Some of the key features of the CPRA are:

• It creates a new state agency, the California Privacy Protection Agency, to enforce the law and issue regulations.
• It expands the definition of personal information to include sensitive data, such as biometric data, health information, sexual orientation, race, ethnicity, religion, and political affiliation.
• It gives consumers the right to limit the use and disclosure of their sensitive data, as well as opt out of the sale or sharing of their personal data.
• It requires businesses to provide consumers with clear and easy-to-understand privacy notices and choices.
• It imposes stricter rules on businesses that process large amounts of personal data or share it with third parties.
• It grants consumers the right to correct inaccurate personal data and request the deletion of their personal data.
• It increases the penalties for violations involving children’s data and provides consumers with a private right of action for data breaches.

The CPRA affects both businesses and consumers in California and beyond. Businesses that operate in California or serve California residents must comply with the law or face fines and lawsuits. Consumers in California have more rights and options to protect their privacy and access their data. Consumers outside of California may also benefit from the law, as some businesses may choose to apply the same standards to all their customers.

The CPRA is expected to have a significant impact on the digital economy and society. It may encourage more innovation and competition in the market, as well as more trust and transparency between businesses and consumers. It may also inspire other states and countries to adopt similar or stronger privacy laws in the future.