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BizReport : Law & Regulation : January 30, 2020

CCPA is Coming: What digital marketers need to know

Two years ago it was the EU's GDPR regulations, but now American businesses will have a new ruling to contend with: the CCPA. The new rulings deal with consumer privacy and data usage. How big a deal with CCPA be for marketers? We asked a digital expert.

by Kristina Knight

Kristina: What is the CCPA law?  What are the consequences of not complying?

Jude McColgan, CEO, Localytics: Similar to the Massachusetts data breach notification law that went into effect in April, and GDPR before that, CCPA is the latest in a line of user data compliance regulations designed to better protect the data of consumers while they browse the internet. These laws are a direct response to the lack of progress at the federal level for appropriate consumer protections, and should serve as a reminder for companies to conduct privacy audits and cross-checks to ensure consumers' personal data is protected. Non-compliance results in a hard dollar cost on a per-record basis. The household names and larger players, like Facebook, that were affected by privacy laws earlier this year made headline news and incurred fees in the millions. Any company that touches user data must be playing an active role in order to safeguard both their customers and their end-users' privacy rights, to avoid what could be crippling fines from the FTC in 2020.

Kristina: Might we see similar laws in the future?

Jude: We can absolutely expect to see other US states follow in California's lead when it comes to data privacy legislation. Technology certainly is a big business driver, but the act of building in security practices from the outset of tech adoption is still a challenge many organizations face. Security, for many, is still an afterthought - instead of an enabler to ensure consumers' private information is adequately protected. What becomes an even more interesting question is how this is legislation is enforced, and whether other US states mirror the language in the CCPA or create their own restrictions. Without a governing body standardizing this type of regulation on a national scale, compliance could quickly become a tangled web for enterprises to navigate here in the States.

Kristina: What might be the impact on companies who rely on data for marketing purposes?

Jude: Following the enaction of CCPA in January, security as a business function will move from the shadows and be front and center, getting a well-deserved audience in the C-suite. The CIO and CISO roles will continue to emerge as a key voice in this broader data privacy discussion, ensuring all departments are strategically aligned. The broader space will learn that it is not immune to data compromise, and marketers who rely on data will need to build authentic connections with their customers - whose familiarity and comfort with the brand will be more important than ever. Personalization will need to evolve beyond device IDs, cookies, and macros to truly provide the information consumers will find valuable, and deliver it to them in the formats they prefer.

Tags: advertising, advertising data, CCPA, consumer data, data collection, data privacy, data usage, GDPR, Localytics

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