Pub. 8 2019-2020 Issue 1

10 San Diego Dealer I n recent years, the growing impact of technology has started a nationwide conversation surrounding how data is collected, used, stored, and transferred. Consumers worry that this new electronic age has jeopardized the privacy of their personal information. California tackles these privacy and data security concerns in the California Consumer Privacy Act (CCPA), which will take force on January 1, 2020. The legislation’s privacy requirements will significantly affect the automotive industry and how it treats customer data. With an upcoming compliance deadline, dealerships and auto companies should take steps now to ensure that they are prepared. What is the California Consumer Privacy Act? The CCPA gives consumers in the state important new privacy rights and more control over their personal information and data. The law provides California consumers with the right to: • Knowwhat personal informationabusiness collects about them; • Know the business or commercial purpose behind the col- lection of their information; • Know whether their personal information is being sold, and to whom; • Tell a business not to share or sell their personal information; • Have their personal information deleted; • Protect themselves against businesses that fail to uphold privacy standards. What Does This Have to do With the Automotive Industry? While the CCPA has implications for many large businesses in a variety of fields, its impact will certainly be felt in the automotive industry. The law applies to for-profit companies that handle personal information from California residents, and (1) have annual gross revenues in excess of $25 million; (2) obtain personal information of 50,000 or more California residents, households, or devices, annually; or (3) collect 50 percent or more of their annual revenue by selling the personal information of California residents. Many dealerships meet the first two requirements. Auto and truck dealerships collect data about consumers daily. A dealership who sells vehicles, parts, or warranties often requires By Robert W. Thompson, Thomas R. O’Connor and Alex A. Zolg Callahan Thompson Sherman & Caudill, LLP CTSC 2601 Main Street, Suite 800, Irvine, California 92614 Tel: 949/261-CTSC(2872) E-Mail: toconnor@ctsclaw.com www.ctsclaw.com “JUMP START” YOUR DEALERSHIP’S COMPLIANCE WITH CALIFORNIA’S UPCOMING PRIVACY INITIATIVE