Non-compliance with the California Consumer Privacy Act (CCPA) can lead to penalties of up to $7,500 per violation for intentional breaches and $2,500 for unintentional ones upon failing to rectify the violation within 30 days of notification.
Additionally, consumers have the right to sue for damages between $100 to $750 per incident, or actual damages, whichever is greater, in case of a data breach caused by failure to implement reasonable security measures.
How do the penalties for CCPA violations get calculated?
The exact penalty for a CCPA violation depends on several factors, including the nature of the violation, the number of affected users, whether the violation was intentional or unintentional, and the company’s efforts to rectify the issue.
For businesses, the accumulation of fines can be significant, as each affected user constitutes a separate violation. This means a breach affecting thousands of users could lead to millions in penalties, providing a strong incentive for compliance.
Can businesses face other consequences aside from monetary penalties?
Beyond financial penalties, non-compliance with the CCPA can also lead to loss of consumer trust, damage to brand reputation, and potential legal action from affected individuals.
The act of non-compliance can signal to customers and partners a lack of commitment to protecting consumer data, which may result in loss of business, as consumers move their loyalty to more compliant competitors.
To learn more about achieving CCPA compliance and minimizing the risk of penalties, check out the comprehensive CCPA Compliance Guide for Tech Startups.
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