On January 1st a new law went into effect in California that represents the first comprehensive consumer online data privacy legislation in the United States.

It's called the California Consumer Privacy Act (CCPA) and it has been compared to the General Data Protection Act that became law throughout the European Union in May 2018. Though not as far-reaching as the European act, the CCPA nonetheless represents a landmark in legislation regarding how companies in the U.S. collect customer data online and what they do with it.

Under the CCPA, California residents have the right to know what information businesses are collecting about them as well as whether this information is being sold or disclosed to other parties. Any company that utilizes data collected from California residents is subject to the act.

In addition, California residents can now ask companies to specify exactly what data has been collected about them. Residents can then review this data and if they wish they can request that the companies stop selling it or even delete it.

To facilitate this process, companies must notify their customers that they are indeed collecting personal data and provide contact information for customers to reach out to these companies. They are also responsible for providing tools and methods that allow their customers to readily access any and all personal data that has been gathered.

Californians can now seek damages for the loss or theft of their personal data.

If a company loses a customer's data or it is stolen, the CCPA enables California residents to sue that company in civil court. This is the first time ever in the U.S. that companies have been subject to this type of penalty for data breaches.

For companies collecting data from California residents, they are now legally obligated to implement and maintain security protocols and procedures appropriate to the nature of the information they are collecting.

A model for other states and possibly the federal government.

We all know that what happens in California often becomes the model for what happens in the rest of the country. Chances are very good that the CCPA will be the foundation for other state privacy regulations and whatever laws are passed in Washington.

In fact, anticipating just such an eventuality, Microsoft announced that it will be implementing the rules stipulated in the CCPA for all its customers throughout the U.S.

Qualpay never sells consumer personal information.

Long before the CCPA was passed, Qualpay made it a policy to never sell consumer personal information. Now that the CCPA is the law, we have further updated our privacy policies. For a detailed description of these policies, go HERE.

It's also essential that all businesses begin to know exactly what data they are collecting. Believe it or not, a lot of businesses don't really know. This is particularly true of start-ups who are often much more engaged in getting their companies up and running than they are in closely analyzing the data collection part of their operations.

The time to get up to speed with the CCPA is now.

We can't emphasize enough how important it is for companies to read up on and learn all about this new act. You can access the full law HERE.

It's also essential that all businesses begin to know exactly what data they are collecting. Believe it or not, a lot of businesses don't really know. This is particularly true of start-ups who are often much more engaged in getting their companies up and running than they are in closely analyzing the data collection part of their operations.

There will be confusion at the start.

Like with every new law, the CCPA's implementation won't be seamless. There will be problems and unforeseen events. In fact, some of the law's compliance issues are still being worked out and some of the law's provisions have been delayed until January 1, 2021.

But public demand for greater transparency in the collection and use of customer data is not going away. It will only get stronger. That's all the more reason to prepare your company today for the new user data policies that are both now here and are still coming.

About Qualpay

Qualpay is a fully-integrated payments platform that utilizes the most up to date technology to reduce costs and streamline back-office operations. Its comprehensive system addresses and resolves the payment challenges businesses face, ensuring a stronger, more robust infrastructure that allows companies to focus on growing their business. Qualpay's reporting intelligence and data analytics allow customers to quickly and efficiently manage their payment finances, saving them both time and money. Simply put, Qualpay provides a better way to manage payments. For more information, please visit www.qualpay.com.