The California Consumer Privacy Act's Impact on the Digital Advertising Industry
Complying with the law may be an especially thorny undertaking for data-driven marketing and advertising businesses, as the CCPA encompasses much of the information relied on by, and disclosed among, those entities that operate in the online advertising ecosystem.
April 16, 2019 at 07:00 AM
6 minute read
The use of data by marketers and advertisers has fueled the modern digital economy, and powers many of the businesses that have become staples in the American marketplace. At the same time, across the nation and the globe, lawmakers have been looking for ways to force companies to tighten up their data privacy and data security practices.
Late last year, California lawmakers enacted the California Consumer Privacy Act of 2018 (CCPA) to provide for more stringent requirements and practices on the part of companies handling California consumers' electronic information and data. While all businesses that fall under the scope of the CCPA can expect the compliance process to be complex, complying with the law may be an especially thorny undertaking for data-driven marketing and advertising businesses, as the CCPA encompasses much of the information relied on by, and disclosed among, those entities that operate in the online advertising ecosystem.
Notice and Disclosure Obligations
The CCPA affords consumers the right to know—through a general privacy policy and with more details upon request—what personal information a company has collected about them, where the information originated, the use of the information, whether and to whom the information is being disclosed or sold, and the rights they have been afforded under the CCPA. As a result of how broadly the terms “personal information” and “collect” are defined by the CCPA, this notice right will have an impact on essentially all covered businesses that operate in the online advertising ecosystem.
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