California privacy data takes effect in 2023

By Oregon Small Business Association Foundation,

Business owners should prepare themselves to better protect the private information of consumers and employees under new laws taking effect in 2023 in California and other states.

California voters this year passed the California Privacy Rights Act, a ballot initiative that takes effect Jan. 1 to require more transparency by mandating better data security for workers and consumers, according to the Portland Business Journal’s The Playbook. That measure builds on the 2018 California Consumer Privacy Act and requires businesses inside the state—and those from outside California with a gross annual revenue of more than $25 million that operate within its borders—to limit use of personal data and allow consumers access to information collected about them and the right to delete it and prevent its sale. The California measure also applies to companies that buy, sell, or receive personal information of 50,000 or more Californians or derive half or more of their income from selling the personal information of Californians. California established a separate privacy regulator rather than relying on the attorney general to investigate complaints.

Similar laws will take effect soon in Colorado, Connecticut, Utah, and Virginia, so business owners are advised to implement the most restrictive measures if they plan to protect the private information of consumers and employees.

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