{"id":81877,"date":"2020-02-26T09:20:47","date_gmt":"2020-02-26T17:20:47","guid":{"rendered":"https:\/\/oroinc.com\/b2b-ecommerce\/?p=81877"},"modified":"2022-06-07T14:25:57","modified_gmt":"2022-06-07T21:25:57","slug":"ccpa-compliance-californias-new-privacy-law-and-how-it-affects-b2b-ecommerce","status":"publish","type":"post","link":"https:\/\/oroinc.com\/b2b-ecommerce\/blog\/ccpa-compliance-californias-new-privacy-law-and-how-it-affects-b2b-ecommerce\/","title":{"rendered":"CCPA Compliance: How it affects B2B eCommerce %%page%% %%sep%% %%sitename%%"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The CCPA is the first privacy law of its kind in the United States, setting the tone for other US jurisdictions looking to propose similar bills. As the consumer privacy landscape changes from recommendations, to guidance, to enforcement, there are still many B2B eCommerce businesses that aren\u2019t adequately prepared for CCPA compliance and similar changes.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What is CCPA compliance?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/oroinc.com\/b2b-ecommerce\/blog\/oro-ccpa-compliance\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">CCPA<\/span><\/a><span style=\"font-weight: 400;\"> (also known as the California Consumer Privacy Act) is aimed at organizations that do business in California or keep customer data on California residents. Businesses that meet at least one of the following criteria are subject to the law:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Businesses that sell to California residents<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Businesses that generate over $25 million in annual revenue<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Businesses that receive or share personal data on more than 40,000 people<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Businesses that make more than 50% of their annual revenue from selling personal data<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">What does this mean for B2B eCommerce? While CCPA compliance was written into law on January 2020, we won\u2019t be seeing its enforcement before July 1, 2020. And, since this is a relatively new law, it\u2019s difficult to predict how enforcement will come into play and how long before we see full enforcement.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">CCPA vs GDPR: similarities and differences<\/span><\/h2>\n<p><a href=\"https:\/\/doc.oroinc.com\/user\/concept-guides\/consents\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">GDPR<\/span><\/a><span style=\"font-weight: 400;\">, or the European Union&#8217;s General Data Protection Regulation of 2018 is viewed as a game-changer in customer privacy since it placed some unprecedented limits on businesses processing customer data. In fact, CCPA is so similar to its predecessor, that it&#8217;s been referred to as a &#8220;California GDPR&#8221;.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While both directives are closely aligned in their purpose, there are some differences between the two. And, since the devil lies in the details, it\u2019s important to make the following distinctions:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>CCPA<\/b><\/td>\n<td><b>GDPR<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Applies to residents of California<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Applies to businesses processing data within EU plus EU residents<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Right to be informed, to have access, to delete, opt-in<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Right to be informed, to have access, to modify or delete, opt-out<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Customer consent needed for processing customer data<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Legal basis needed for processing customer data<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">$2,500 per violation, and $7,500 if intentional<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20ac20 million or 4% of global revenue (whichever greater) for violation<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"font-weight: 400;\">CCPA checklist: how B2B eCommerce can prepare<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The main aim of CCPA compliance is to protect the customer\u2019s rights to data privacy. This puts pressure on B2B eCommerce businesses that are not transparent enough or have not been offering customers a way to opt-out of supplying their personal data. Here is the main CCPA checklist of what you should be doing:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Updating the privacy policy specifying how, why and what personal information we will collect and process. This also includes instructions for users to request, change or delete personal data we collected on them.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Being able to accommodate a customer\u2019s request to reveal what data is being stored within 45 days, as well as being able to verify their identity before doing so.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Including a \u201cdo not sell my personal information\u201d option for allowing customers to opt-out of sharing their data with third parties.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Implementing an opt-in for collecting data on persons under the age of 16, and for requesting parental consent for those under the age of 13.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">More specifically, organizations can take the following steps to comply:<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Revamp your privacy policy<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The CCPA requires getting across how customer data is used, and the best way to do that is through the privacy policy. Businesses should specify what type of information they collect and process, how it\u2019s being collected, as well as the reason for doing so. They should provide the end-user with clear instructions, including identity verification requirements, for requesting access in order to examine or delete their information. Lastly, the procedure of opting out from having their information sold to third parties should also be clearly listed.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Audit your data handling<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Review how your customer data is handled and managed by your company, including where it\u2019s stored and how it\u2019s used to prevent any unintentional violations. For example, take a look at what data points you\u2019re collecting, in what format, if it\u2019s encrypted, and where it is used afterwards. Since the CCPA also applies to whoever you receive or purchase customer data from, ensure third-party vendors you\u2019re working with are also CCPA compliant.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Be able to manage requests<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In order to better prepare themselves, B2B eCommerce businesses should establish a way to manage their customers\u2019 personal data requests. Start by assigning a member of your team with the responsibility of handling these requests. Set a timeline and plan of action on how to respond (companies have only 45 days to do so), and whether that individual will carry out requests to disclose, modify or delete data.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Assign responsibility<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Depending on the size and complexity of your B2B eCommerce business, you may want to determine how you will manage consent, which <\/span><a href=\"https:\/\/oroinc.com\/b2b-ecommerce\/blog\/new-extension-for-customer-consent-management\/\"><span style=\"font-weight: 400;\">Oro accommodates out of the box<\/span><\/a><span style=\"font-weight: 400;\">. Consider widening the scope of responsibilities for your Data Protection Officers or Security Policy Officers, or implementing data access restrictions for team members.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">CCPA compliance penalties<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">While small businesses may breathe a sigh of relief, larger businesses will have charges compounded if a penalty is levied on them. With fines assessed per person and set at $2,500 per unintentional violation and $7,500 per intentional violation, you could get an idea of the potential penalties you could be exposed to. For example, if you have 100 customers and a $2500 fine per customer, you\u2019d be looking at a $250,000 fine.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How Oro products comply with CCPA compliance<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Oro takes data our customers and their end-users entrust us with seriously. That\u2019s why we comply with the latest <\/span><a href=\"https:\/\/oroinc.com\/b2b-ecommerce\/blog\/pci-dss-is-changing-soon-how-does-this-affect-you\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">PCI DSS<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/oroinc.com\/b2b-ecommerce\/blog\/orocommerce-security-announcing-soc-2-certification\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">SOC 2<\/span><\/a><span style=\"font-weight: 400;\"> requirements on data security. Oro products are also fully compliant with GDPR, which is explained in <\/span><a href=\"https:\/\/oroinc.com\/orocrm\/getting-ready-for-gdpr-orocrm\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">our GDPR guide<\/span><\/a><span style=\"font-weight: 400;\">. GDPR\u2019s principles apply to CCPA, so using our <\/span><a href=\"https:\/\/doc.oroinc.com\/user\/concept-guides\/consents\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Consent Management<\/span><\/a><span style=\"font-weight: 400;\"> engine you can add necessary consents and manage them from the OroCommerce backend. Nevertheless, most of the responsibility for CCPA compliance lies with organizations depending on how they use customer data.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With CCPA and GDPR in full swing, it\u2019s inevitable that we\u2019ll see more data protection regulations in the future. These pressures on businesses may increase demand for Data Protection Officers and Data Protection Consultants that help B2B eCommerce businesses stay complaint and continue uninterrupted operations. In either case, the best way to do that is by ensuring you have all the technical requirements in place for compliance, and we at <\/span><span style=\"font-weight: 400;\">OroCommerce<\/span><span style=\"font-weight: 400;\">\u00a0are committed to helping you do that.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The CCPA is the first privacy law of its kind in the United States, setting the tone for other US jurisdictions looking to propose similar bills. As the consumer privacy landscape changes from recommendations, to guidance, to enforcement, there are still many B2B eCommerce businesses that aren\u2019t adequately prepared for CCPA compliance and similar changes. [&hellip;]<\/p>\n","protected":false},"author":38577,"featured_media":81884,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-81877","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-product-news-updates"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>CCPA Compliance: How it affects B2B eCommerce | OroCommerce<\/title>\n<meta name=\"description\" content=\"How is California&#039;s privacy law, the CCPA, affecting B2B eCommerce Businesses? 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