Guide to Understanding and Navigating the California Privacy Rights Act (CPRA) for SMEs

If you are an executive of a small-to-mid-sized company, it’s crucial to be familiar with the California Privacy Rights Act (CPRA). Put simply, it’s a law that requires you to handle the data of your Californian customers with care and thoughtful consideration. It also grants them rights to manage their data and how it’s used.

A Brief Review of CPRA’s History

The CPRA was introduced in 2020 as an upgrade to the previously enacted California Consumer Privacy Act (CCPA). The CPRA comes with stricter rules and extended data privacy rights for consumers. It takes into consideration the evolving digital landscape and its challenges. Today, it’s one of the most comprehensive data protection laws in the United States.

Examples of CPRA’s Business Impact

  • 1. Revenue Loss: Non-compliance with CPRA could lead to hefty fines with caps at $7,500 per intentional violation. This can have a huge impact on the revenue of a small-to-mid-sized enterprise.
  • 2. Downtime: If consumers request access to their data or ask for deletion, businesses must comply within a specific timeframe. This could lead to operational downtime, especially if data management systems aren’t well-organized.
  • 3. Reputation Damage: CPRA compliance isn’t just a legal requirement—it’s a reputational matter. Non-compliance may lead to a loss of customer trust, damaging your brand’s reputation.

Insight: Mitigating CPRA Associated Risks

One common way to avoid the risks associated with CPRA is to conduct a regular security assessment of your company’s data management and privacy measures. By doing so, you can identify areas of potential non-compliance and address them promptly.

Let’s Navigate Cybersecurity Together

Understanding laws like the CPRA and implementing proper security measures is a challenging task. It’s where our expertise as providers of Fractional CISO services, security assessments, and strategic IT security consulting comes in. We help small-to-mid-sized companies stay ahead of the curve in cybersecurity, risk management, and compliance. Contact us for a free consultation to see how we can support your business.