CA Consumer Privacy Act – Jan 2020
Met with Virginia Aherin of Netlok last week. We were talking about cybersecurity insurance and the struggles companies were having in trying to protect their data, their systems and meet compliance. Virginia provided valuable information on the new law related to consumer protection and what businesses need to be aware of as of Jan 2020 – we both wanted to share. Here’s a snipet of our conversation – [Virginia] As mentioned, I attended the RSA conference in San Francisco along with 40,000 cybersecurity professionals.
A major topic at the conference was the new privacy laws being put into place, so I wanted to share the below link with you as an excellent resource on the upcoming CCPA law of Jan 1, 2020 in the state of California.
The following link takes you to: 20 Questions (And Short Answers) On The California Consumer Privacy Act (CCPA) | Fox Rothschild LLP – JDSupra
JD Supra is a legal publishing service that connects experts and their content with broader audiences of professionals, journalists and associations. www.jdsupra.com
The CCPA is most focused on the state of privacy and security and a new direction that will affect all of us and small businesses in particular. Based on the CCPA, other state legislation and discussions with lawyers and leading-edge companies, two observations can be made.
- The cost of a breach will be so expensive ($2500 per account minimum) that many small businesses will close their doors 6 months after a breach (in some cases, even insurance will not help); and,
- For those companies that give away their software or applications for free and generate their revenue by selling client data, they will either have to change their business model or go out of business.
Additionally, the sentiment coming out of this year’s RSA conference is cybersecurity threats are more prevalent and sophisticated than ever, and we all should ensure we have the necessary security and privacy procedures along with technology in place to protect our organizations from attacks.
Thinking about the potential impact of this law to businesses, especially small to medium size – all companies should really be taking steps now to evaluate and mitigate their risk.
A big thanks to Virginia and Netlok for providing insights from the conference.
Netlok products offer an innovative, user-friendly way to protect your data and communications – check them out at www.netlok.com . For more information, feel free to contact Virginia directly.
VP of Business Development