Protecting personal data is a significant responsibility for individuals, companies, and government bodies in the current digital era. Privacy laws are more crucial than ever to guarantee that individual's personal information is safe and secured.
For a better understanding of the differences and similarities between the California Privacy Rights Act (CPRA) and the General Data Protection Regulation (GDPR), we will examine these two important privacy laws in this post.
Understanding the CPRA
The CPRA strengthens California's existing privacy laws and expands the rights of consumers with regard to their personal data.
Although the most of the provisions amending the CCPA didn't become "active" until January 1, 2023, the California Privacy Rights Act (CPRA) is a privacy regulation that went into force on December 16, 2020.
Some of the most important aspects of the CPRA are the creation of a new data protection agency, the ability to refuse the sale of personal information, and improved security measures for sensitive personal data such racial, religious, and health information.
Businesses operating in California must be aware of the CPRA since failure to do so could result in significant fines and other repercussions.
Understanding the GDPR
The General Data Protection Regulation (GDPR) is a privacy regulation that went into effect on May 25th, 2018.
It is an EU rule that applies to companies that are based in the European Union or that provide goods or services to EU citizens. Individuals have a wide range of privacy rights under the GDPR, and noncompliance is penalized by severe fines.
CPRA vs GDPR: Similarities
The CPRA and GDPR share many similarities despite being separate state laws. They consist of:
- Individuals have the right to access their personal information under both laws.
- Individuals have the right to request the erasure of their personal information under both laws.
- Both laws demand companies to provide individuals privacy notices.
- Both laws have sanctions for violating them.
CPRA vs GDPR: Differences
While there are many similarities between the CPRA and GDPR, there are also some key differences. They consist of:
- The GDPR applies to businesses operating within the EU or that offer goods or services to individuals in the EU, whereas the CPRA only applies to California residents and businesses that operate within the state of California.
- Compared to the GDPR, the CPRA provides a lower threshold for what constitutes "personal information".
- In contrast to the GDPR, the CPRA mandates businesses to give consumers more comprehensive privacy notifications.
- The CPRA does not require businesses to appoint a Data Protection Officer (DPO), whereas the GDPR does.
- •Compared to the CPRA, the GDPR sets harsher sanctions for non-compliance.
- Does the CPRA only apply to California residents? Yes, the CPRA only applies to California residents and companies that operate within the state.
- Is the GDPR only applicable to comapnies based in the EU? No, regardless of where the company is situated, it must comply with the GDPR if it offers goods or provides services to individuals in the EU.
- What sanctions are in place for violating the CPRA and GDPR? In comparison to the CPRA, the GDPR imposes harsher sanctions for non-compliance. For failing to comply with the GDPR, businesses risk fines of up to 4% of their annual global revenue or €20 million, whichever is larger. The CPRA imposes administrative fines of up to $2,500 for each infraction or up to $7,500 for each intentional infraction. The law is enforced by the California Privacy Protection Agency (CPPA), which has the authority to conduct investigations and levy penalties for infractions. The CPRA also allows statutory damages of $100 to $750 per consumer per incident, or actual damages, whichever is higher.
Last updated: March 15, 2023