What is the California Consumer Privacy Act?

Takeaway: The CCPA is California's landmark privacy law, granting consumers significant rights over their personal data and imposing GDPR-like compliance obligations on any startup that does business in California.

While the GDPR set the global standard for data privacy, the United States does not have a single, comprehensive federal privacy law. Instead, a patchwork of state-level laws has emerged, and the most important and influential of these is the California Consumer Privacy Act (CCPA), which has been amended and expanded by the California Privacy Rights Act (CPRA).

For any startup, regardless of where you are located, if you have users or customers in California (which, for most tech companies, is a certainty), you must understand and comply with the CCPA. It has become the de facto national standard for privacy in the U.S.

Key Rights for California Consumers

The CCPA grants California residents a set of core rights over their personal information that are similar to those found in the GDPR:

  • The Right to Know: Consumers have the right to know what specific pieces of personal information a business is collecting about them, the sources of that information, and the purposes for which it is being used.

  • The Right to Delete: Consumers have the right to request that a business delete the personal information it has collected from them, subject to certain exceptions.

  • The Right to Opt-Out of Sale/Sharing: This is a critical right. Consumers must be given a clear and conspicuous opportunity to opt-out of the "sale" or "sharing" of their personal information. The law defines "sharing" broadly to include disclosing data for cross-context behavioral advertising. This is why you often see a "Do Not Sell or Share My Personal Information" link on many websites.

  • The Right to Correct: Consumers have the right to request the correction of inaccurate personal information.

  • The Right to Limit Use of Sensitive Personal Information: Consumers can direct businesses to only use their "sensitive" personal information (like health data, genetic data, or precise geolocation) for essential purposes.

Who Must Comply?

The CCPA applies to for-profit businesses that "do business" in California and meet certain revenue or data processing thresholds. The threshold that is most relevant to startups is the one that applies to any business that buys, sells, or shares the personal information of 100,000 or more California consumers or households.

Practical Implications for Your Startup

  • A "California" Privacy Policy: Your website's privacy policy must be updated to include a specific section for California residents that outlines their CCPA rights.

  • A Mechanism for Consumer Requests: You must have a process in place to receive and fulfill requests from consumers who want to exercise their rights (e.g., a "right to delete" request).

  • "Do Not Sell" Link: If your business engages in activities that could be considered "selling" or "sharing" personal information, you must provide a clear link on your website that allows users to opt-out.

The CCPA has fundamentally changed the privacy landscape in the United States. For startups, building a privacy program that respects these key consumer rights is no longer just a best practice for building user trust; it is a core legal requirement.

Disclaimer: This post is for general informational purposes only and does not constitute legal, tax, or financial advice. Reading or relying on this content does not create an attorney–client relationship. Every startup’s situation is unique, and you should consult qualified legal or tax professionals before making decisions that may affect your business.