What Is the California Privacy Rights Act (CPRA)?

In our current, data-driven economy, data privacy regulations have become critical business considerations that can impact everything from customer trust to bottom-line profitability. The California Privacy Rights Act (CPRA) represents one of the most comprehensive privacy laws in the United States, affecting millions of businesses worldwide that serve California consumers.

Whether you’re a startup collecting customer emails or an enterprise managing complex data ecosystems, understanding CPRA requirements isn’t optional—it’s essential for legal compliance, competitive advantage, and consumer trust. This comprehensive guide will walk you through everything you need to know about CPRA compliance, from understanding core requirements to implementing practical compliance strategies. You’ll learn about consumer rights, business obligations, enforcement mechanisms, and actionable steps to ensure your organization meets California’s stringent privacy standards.

Executive Summary

Main Idea: The California Privacy Rights Act (CPRA) is California’s comprehensive data privacy law that took effect in January 2023, providing California residents with extensive rights over their personal information while requiring businesses to implement robust privacy protections, transparency measures, and consumer request processes.

Why You Should Care: CPRA compliance isn’t just about avoiding penalties up to $7,500 per violation—it’s about building consumer trust, gaining competitive advantage, and future-proofing your business against evolving privacy regulations. Non-compliance can result in significant financial penalties, reputational damage, and lost business opportunities in the nation’s largest state economy.

What Is the California Privacy Rights Act (CPRA)?

The California Privacy Rights Act (CPRA) is California’s comprehensive data privacy law that protects California residents’ personally identifiable information (PII). The law took effect in January 2023, significantly expanding and enhancing California’s privacy protections. The CPRA ensures that California residents have robust control over how businesses handle their personal information, including enhanced rights to access, correct, delete, and limit the use of their data.

The CPRA is considered one of the strictest privacy laws in the United States, providing California consumers with unprecedented control over their personal information while requiring businesses to implement comprehensive privacy safeguards and transparency measures.

CPRA Compliance Requirements for Businesses

Understanding CPRA compliance is essential for any business that collects, processes, or shares personal information from California residents. The law establishes comprehensive requirements that go far beyond simple privacy policy updates.

What Is CPRA Compliance?

Modeled after privacy frameworks like the European Union’s General Data Protection Regulation (GDPR), the CPRA requires businesses collecting PII from California residents to provide detailed information about their data practices. For a business to ensure CPRA compliance, it must adjust its privacy policy and operations to include:

• The information a business collects and processes
• The reason for which the information is collected and processed
• Methods used to collect and process personal information
• How consumers can exercise their rights to access, correct, delete, or port their personal data
• The method used to verify the identity of consumers submitting requests
• The sale and sharing of users’ PII and how they can opt out
• How sensitive personal information is used and disclosed, and how consumers can limit such use
• Data retention and deletion practices
• Third-party relationships and data sharing arrangements

Geographic Scope and Applicability

The CPRA’s reach extends far beyond California’s borders, creating compliance obligations for businesses worldwide.

Global Application of California Privacy Law

The CPRA is a California state law but applies to businesses worldwide, provided they handle PII belonging to California residents. The law’s extraterritorial reach means that any business serving California consumers must comply with CPRA requirements, regardless of where the business is located.

Organizations That Must Comply With the CPRA

The CPRA applies to all for-profit businesses collecting and controlling PII belonging to California residents that meet any of the following criteria:

• Gross annual revenue of over US$25 million
• 50% or more of annual revenue comes from selling or sharing PII belonging to California residents
• Buys, receives, sells, or shares the PII of 100,000 or more California residents or households annually

Organizations Not Subject to the CPRA

The CPRA doesn’t apply to nonprofits, smaller companies that don’t meet the revenue thresholds, and those that don’t deal in large amounts of PII from California residents.

Other situations where the CPRA doesn’t apply include:

When No PII Is Involved: The main focus of the CPRA is on PII. Publicly available information—namely, information lawfully made available from federal, state, and local government records—is not subject to the CPRA.

When Other Laws and Regulations Apply:Other regulations regarding data protection already govern some industries. Such laws include the Health Insurance Portability and Accountability Act (HIPAA), the Gramm-Leach-Bliley Act (GLBA), and the Fair Credit Reporting Act (FCRA). The CPRA exempts data that is already covered under these laws.

Consumer Rights Under the CPRA

The CPRA establishes seven fundamental privacy rights that California residents can exercise regarding their personal information. Understanding these rights is crucial for implementing compliant business processes.

The Seven Core Privacy Rights

California residents enjoy comprehensive control over their personal information through these essential rights:

Right to Know and Access

Consumers can request that businesses disclose:

• All personal information collected about the consumer
• Categories of sources from which the information is collected
• The business purpose for collecting that information
• Any third parties with whom the information is shared or sold

Right to Delete

Consumers can request deletion of their personal information, with certain exceptions for necessary business operations such as completing transactions, detecting security incidents, or complying with legal obligations.

Right to Correct Inaccurate Information

Consumers have the right to request correction of inaccurate personal information. Businesses must take reasonable steps to correct inaccurate personal information upon receiving a verifiable consumer request.

Right to Data Portability

Consumers can request their personal information in a portable, readily usable format that allows them to transmit the data to another entity without hindrance.

Right to Opt-Out of Sale and Sharing

Consumers can opt out of the sale or sharing of their personal information. Businesses must provide clear and conspicuous links titled “Do Not Sell or Share My Personal Information” on their websites.

Right to Limit Use of Sensitive Personal Information

Consumers can limit the use and disclosure of their sensitive personal information to only what is necessary to perform expected services or provide requested goods.

Right to Non-Discrimination

Businesses cannot discriminate against consumers for exercising their privacy rights by denying goods or services, charging different prices, or providing different levels of quality.

Personal Information Categories Under CPRA

The CPRA provides detailed definitions of personal information types, with special protections for sensitive categories. Understanding these definitions is essential for proper data classification and regulatory compliance.

Standard Personal Information

The CPRA defines personal information broadly as information that “identifies, relates to, describes, can be associated with, or could reasonably be linked to a particular person.” This comprehensive definition includes:

• Identifiers such as real name, alias, postal address, unique personal identifier, online identifier, IP address, email address, account name, Social Security number, driver’s license number, or passport number
• Commercial information including purchase records and consuming histories
• Biometric information for identification purposes
• Internet activity information such as browsing history and website interactions
• Geolocation data that can identify consumer location
• Audio, electronic, visual, thermal, olfactory, or similar information
• Professional or employment-related information
• Education information that is not publicly available
• Inferences drawn to create consumer profiles reflecting preferences, characteristics, or behavior

Sensitive Personal Information Categories

The CPRA introduced a special category of “sensitive personal information” that receives enhanced protections and triggers additional consumer rights:

High-Risk Data Categories

These information types require special handling and consumer consent for non-essential uses:

• Social Security numbers, driver’s license numbers, state identification card numbers, or passport numbers
• Account log-in credentials, financial account numbers, debit or credit card numbers, or account passwords or security codes
• Precise geolocation data that can track consumer movements
• Racial or ethnic origin, religious or philosophical beliefs, or union membership
• Biometric identifiers processed for unique identification purposes
• Health information including medical conditions, treatments, or diagnoses
• Information concerning sex life or sexual orientation
• Genetic data including DNA analysis results

Consumer Control Over Sensitive Information

Consumers have enhanced rights regarding sensitive personal information, including the ability to limit its use and disclosure to only what is necessary to perform the services or provide the goods reasonably expected by the consumer.

Privacy Impact Assessments and Risk Management

The CPRA introduces mandatory risk assessment requirements for businesses engaged in high-risk data processing activities. These assessments help identify potential privacy risks and implement appropriate safeguards.

When Privacy Impact Assessments Are Required

Businesses must conduct comprehensive privacy impact assessments for these high-risk processing activities:

High-Risk Processing Activities

The following activities trigger mandatory assessment requirements:

• Selling or sharing personal information with third parties
• Processing sensitive personal information for any purpose
• Processing personal information for targeted advertising purposes
• Processing personal information for profiling that presents a risk of discrimination or other adverse impacts

Assessment Requirements and Components

Privacy impact assessments must evaluate the benefits and risks of processing activities and identify safeguards to mitigate potential harms. These assessments should include risk identification, impact analysis, and mitigation strategies to protect consumer privacy.

California Privacy Protection Agency (CPPA) Enforcement

The CPRA established a dedicated regulatory agency with exclusive authority to enforce California’s privacy laws. Understanding the CPPA’s powers and enforcement approach is crucial for compliance planning.

CPPA Powers and Authority

The California Privacy Protection Agency represents a significant enhancement in privacy law enforcement capabilities compared to previous regulatory structures.

Comprehensive Regulatory Authority

The CPPA has broad powers to ensure CPRA compliance:

• Conduct investigations and audits of business practices
• Issue regulations and guidance on privacy requirements
• Impose administrative penalties for violations
• Order corrective actions and compliance measures
• Conduct rulemaking proceedings to clarify legal requirements

Enhanced Enforcement Capabilities

This dedicated agency provides focused regulatory oversight with specialized expertise in privacy law enforcement, representing a significant shift from relying solely on the Attorney General’s office for privacy law enforcement.

Penalties and Consequences for CPRA Violations

Understanding the financial and reputational risks of non-compliance helps businesses prioritize privacy investments and compliance efforts.

Administrative Penalties

Noncompliance with the CPRA carries substantial financial penalties that can significantly impact business operations:

• Intentional violations: Up to $7,500 per violation for purposeful non-compliance
• Unintentional violations: Up to $2,500 per violation for negligent non-compliance
• Data breach damages: Up to $750 per affected consumer through private right of action

Consumer Private Right of Action

The CPRA maintains consumers’ ability to sue businesses directly for data breaches resulting from non-compliance. Consumers must provide 30 days’ notice before filing suit, giving businesses an opportunity to cure violations and avoid litigation.

Step-by-Step CPRA Compliance Implementation

Achieving CPRA compliance requires systematic planning and implementation across multiple business functions. This comprehensive approach ensures thorough compliance while minimizing business disruption.

Phase 1: Assessment and Planning

The initial compliance phase focuses on understanding your obligations and current compliance gaps.

1. Determine Legal Applicability

Begin by assessing whether your business meets the CPRA’s jurisdictional thresholds and handles California residents’ personal information. Consider revenue levels, data processing volumes, and customer demographics.

2. Conduct Comprehensive Data Mapping

Create a detailed inventory of all personal information collected, processed, stored, and shared throughout your organization. Pay special attention to identifying sensitive personal information that requires enhanced protections.

Phase 2: Policy and Process Updates

This phase involves updating business policies and implementing compliant operational procedures.

1. Update Privacy Policies and Notices

Revise privacy notices to include all CPRA-required disclosures, including detailed information about data practices, consumer rights, and contact information for privacy requests.

2. Implement Consumer Request Processes

Establish reliable mechanisms for consumers to exercise their privacy rights, including identity verification procedures, response timelines, and request tracking systems.

Phase 3: Third-Party and Risk Management

Address external relationships and high-risk processing activities that require special attention under CPRA.

1. Review Third-Party Relationships

Audit all vendors, service providers, and partners who process personal information to ensure compliance and update contracts with appropriate privacy protections.

2. Conduct Privacy Impact Assessments

Implement processes to identify when privacy impact assessments are required and conduct them for high-risk processing activities like data sales, targeted advertising, and sensitive information processing.

Phase 4: Governance and Training

Establish ongoing compliance monitoring and staff education to maintain compliance over time.

1. Establish Data Governance Framework

Implement data minimization practices, retention schedules, and deletion procedures to ensure personal information is handled appropriately throughout its lifecycle.

2. Provide Comprehensive Staff Training

Train employees on CPRA requirements, consumer rights, and proper handling of personal information. Include role-specific training for customer service, marketing, and IT teams.

3. Monitor and Maintain Compliance

Establish ongoing monitoring and auditing procedures to ensure continued compliance as business practices evolve and regulatory guidance develops.

Evolution of California Privacy Law: From CCPA to CPRA

Understanding the historical development of California privacy law provides important context for current requirements and future regulatory trends.

The California Consumer Privacy Act Foundation

The CPRA builds upon the foundation established by the California Consumer Privacy Act (CCPA), which was enacted in 2018 and took effect in January 2020. The CCPA was groundbreaking as the first comprehensive state privacy law in the United States, establishing basic consumer rights and business obligations regarding personal information.

Key Enhancements and Improvements

The CPRA significantly expanded upon the CCPA framework through several important enhancements:

Enhanced Consumer Rights and Protections

The CPRA added the right to correct inaccurate information and limit use of sensitive personal information, providing consumers with greater control over their data.

Sensitive Personal Information Category

The law created a new category of sensitive personal information with special protections, recognizing that certain data types require enhanced safeguards.

Dedicated Enforcement Infrastructure

The CPRA established the CPPA to provide focused regulatory oversight and enforcement, representing a significant improvement in regulatory capacity.

Mandatory Risk Assessments

The law required privacy impact assessments for high-risk processing activities, promoting proactive risk management.

Expanded Scope and Coverage

The CPRA extended some protections to employee and business-to-business contexts while adding explicit data minimization requirements.

Privacy Law Timeline and Milestones

Understanding the development timeline helps businesses anticipate future regulatory changes:

• 2018: CCPA enacted by California legislature
• January 2020: CCPA took effect with basic privacy protections
• November 2020: CPRA approved by California voters as ballot initiative
• January 2023: CPRA took effect with enhanced protections
• July 2023: CPRA enforcement began with full regulatory authority

CPRA Compared to Other Privacy Laws

Understanding how CPRA relates to other privacy regulations helps businesses develop comprehensive compliance strategies for multiple jurisdictions.

CPRA vs. GDPR Comparison

While both laws provide comprehensive privacy protections, they differ in scope, approach, and enforcement mechanisms:

Scope and Application Differences

• GDPR: Applies to all personal data processing regardless of business size or revenue
• CPRA: Focuses on businesses meeting specific revenue or data volume thresholds

Legal Framework Approaches

• GDPR: Requires lawful basis for all personal data processing activities
• CPRA: Emphasizes transparency and consumer control over data use

Consumer Rights and Business Obligations

• GDPR: Includes comprehensive data portability and objection rights
• CPRA: Focuses on opt-out rights for selling and sharing personal information

Enforcement and Penalties

• GDPR: Higher penalty caps with potential fines up to 4% of global revenue
• CPRA: Provides consumer private right of action for data breaches

CPRA’s Influence on National Privacy Legislation

The CPRA continues to influence privacy legislation in other states and shapes discussions around federal privacy law development in the United States. Many states have adopted similar frameworks based on California’s privacy law model.

Demonstrate CPRA Compliance With Kiteworks

Kiteworks helps organizations comply with the California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA) by securing the exchange, storage, and governance of personal data. It offers end-to-end encryption, zero-trust access controls, and detailed audit logs to protect sensitive consumer information like /PHI from unauthorized access or breaches. These capabilities support CCPA/CPRA mandates for “reasonable security,” helping organizations mitigate liability under data breach provisions.

The platform also enables businesses to fulfill consumer rights requests—such as access, deletion, and data portability—through secure file transfer and controlled access workflows. Kiteworks facilitates third-party sharing in compliance with contractual and accountability requirements, ensuring service providers handle personal data with the same level of security. With policy-based data retention, detailed reporting, and centralized visibility, Kiteworks supports the principles of data minimization and purpose limitation while helping organizations demonstrate privacy compliance during audits or regulator reviews.

To learn more about Kiteworks for CPRA/CCPA compliance, schedule a custom demo today.

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