Being pushed by increasing online activity in the backdrop of protection of personal data, the privacy environment of India has seen profound changes. The number of citizens accessing the internet for banking, shopping, healthcare, and socialising has made the matter of protection of sensitive information a national concern. The significant developments brought about by the Digital Personal Data Protection Act, 2023 (DPDP Act) are the laying down of comprehensive rights of individuals and definite duties of institutions related to personal data. To prime the sectoral legislations like the IT Act, 2000, along with the guidelines issued thereunder, the regulatory framework in India would try to balance protecting innovation against protecting privacy in the digitally oriented world, where openness, accountability, and trust are important.
What is GDPR / CCPA?
The General Data Protection Regulation (GDPR) is a data protection directive adopted and carried out by the European Union on May 25, 2018. The Directive establishes how organisations, firms, or businesses running and trading on the territory of the European Union should acquire, save, process, or disseminate any data under the domain of personal data of the data subjects. Data subjects have several important rights under the GDPR, including right to data access, rectification, erasure (‘right to be forgotten’), and revocation of agreement. Imposing a penalty of a monetary value up to €20 million or 4% of the total global annual turnover, any violation of these terms will be very severely punished.
On the other hand, the California Consumer Privacy Act (CCPA) is a privacy legislation passed in California. It became enforceable on January 1, 2020. This grants residents of California the right to know what data companies collect on them, what it does with the data, and to whom the data is shared. Consumers can refuse to have their data sold and have the data deleted.
While the GDPR is more focused on overarching data protection in the EU at the sectoral level, the CCPA focuses on the transparency and consumer control of personal data, with distinct compliance obligations and enforcement tactics. Both regulations are designed to enhance data privacy rights.
Applicability of GDPR / CCPA
The General Data Protection Regulation, also known as the GDPR, applies to:
- All EU organisations that process personal data.
- Companies outside the EU selling goods or services to, or tracking the activities of, EU citizens are also subject to this legislation.
- Data controllers determine how the data is going to be processed, and others, the data processors, perform the processing on their behalf.
The California Consumer Privacy Act (CCPA) comes into force for business organisations within California that collect personal data from its citizens. Entities that qualify based on any of the following grounds are liable under the CCPA:
- The gross revenue of their last calendar year was over $25 million.
- They sell, purchase, or transfer personal information of 100,000 or more California consumers or households.
- They receive 50% or more of their yearly revenues from selling consumer personal information.
Although the GDPR applies to any company processing EU personal data across the world, the CCPA only applies to qualifying for-profit companies selling to Californian consumers.
How to Stay GDPR / CCPA Compliant?
To be GDPR and CCPA compliant, first of all, you must guarantee an open policy, announce open data handling systems, put consumer rights on a higher platform, employ security controls, and regularly supervise.
1. Get familiar with the law
Whether they are living or not in the EU/EEA, GDPR (General Data Protection Regulation) targets organisations processing EU/EEA citizens’ personal data.
Includes names, email addresses, IP addresses, geolocation, cookies, and all other kinds of information that can identify any person.
Stresses the need for individual consent as well as the lowering of data, data subject rights, security, and minimisation of data.
CCPA (California Consumer Privacy Act) would be enforced on for-profit entities engaged in business in California and meeting some threshold (e.g., gross annual revenue of over $25 million, selling/buying/sharing personal data of more than 100,000 consumers, or the sale of consumer data constituting 50% or more of gross revenue). Assures California consumers of their right to their own knowledge.
2. Chart and categorise your data
- Data Inventory: Inventory all personal data that you gather, store, process, and transfer.
- Data flow mapping. Determine where the data comes from, where it is stored, and where it is sent.
- Classify sensitive and personal information (e.g., health and financial information).
3. Update your privacy policy
Make your privacy notice clear, transparent, and current. Include:
- What data do you collect?
- Why did you collect it?
- Legal basis for processing (GDPR demands this)
- How rights can be exercised by consumers
- Information on third-party data sharing
- Data protection inquiry contact information
4. Get and handle consent appropriately
- GDPR: Transparent, specific, informed, express consent must be given voluntarily (opt-in, not pre-ticked boxes).
- CCPA: Offer an opt-out link with the title “Do Not Sell or Share My Personal Information.”
- Document consent and facilitate withdrawal for users.
5. Strengthen consumer rights
Both laws empower individuals over their data, but in different ways.
GDPR Rights:
- Access: Users have a right to access their data.
- Correct incorrect data.
- Erasure: The “Right to be Forgotten.”
- Processing limitations.
- Data portability.
- Right to object to processing.
CCPA Rights:
- Understand how personal information is being collected and shared.
- Request erasure of personal data.
- Opt out of the sharing or selling of data.
- Ensure non-discrimination in exercising rights.
6. Restrict data collection and storage
Collect only data necessary for the stated purpose (data minimization principle of GDPR). Establish storage periods and automatically erase data when no longer necessary.
7. Secure your data
Use encryption, firewalls, intrusion detection systems, and strong passwords. Restrict access on a need-to-know basis. Conduct frequent vulnerability scanning. GDPR requires notification to authorities for certain breaches within 72 hours.
8. Look after third-party contractors
Have all third-party partners and suppliers processing personal data on your behalf:
- Implement Data Processing Agreements (DPAs).
- Meet security standards that are on a level with your own.
- Be audited for compliance.
9. Educate your staff
Train employees on processing personal data, phishing, and privacy policies. Inform employees on how to properly recognize and process data subject requests.
10. Appoint a Data Protection Officer (DPO) or Privacy Lead (if necessary)
- GDPR mandates a DPO in public authorities, those institutions actively engaged in mass monitoring, or handling large volumes of sensitive data.
- CCPA does not need to employ a DPO but finds it useful in structuring compliance.
11. Keep documentation & audit trails
GDPR mandates records of processing activities (ROPA). Record:
- Consent
- Sharing of data
- Responses to breaches
- User rights
12. Be updated
- GDPR looks for guideline revisions by the European Data Protection Board (EDPB).
- CCPA recognises changes like the CPRA (California Privacy Rights Act), with obligations from 2023 and onwards.
- Monitor compliance periodically.
GDPR / CCPA Compliance Authorities
Data Protection Authorities (DPAs) of all EU member states are the major GDPR enforcement bodies. Independent and responsible for monitoring, probing, and enforcing GDPR compliance, DPAs among the well-known ones are the UK’s Information Commissioner’s Office (ICO), CNIL of France, and BfDI of Germany. They perform audits, impose penalties (up to €20 million or 4% of global turnover), issue instructions on corrective measures, and the European Data Protection Board (EDPB) coordinates the parallel enforcement of the GDPR throughout the EU.
The California Attorney General (AG) continues to enforce the CCPA until 2023, when the CPPA takes over as the main enforcer. The CPPA is an independent agency that sets laws, looks into breaches, and levies punishments. Moreover, it collaborates with the AG in consumer rights to access, delete, and opt out of data sales.
Both GDPR and CCPA authorities have broad authority to probe complaints, execute enforcement measures, and assess noncompliance penalties. Although the CCPA is a state law with central authority in California, the GDPR falls under a multinational framework through DPAs.
Consequences of GDPR / CCPA Violations
Organisations that breach GDPR or CCPA will suffer draconian legal, financial, and reputational consequences. For GDPR, fines can be imposed up to €20 million or 4% of the organisation’s global annual turnover, whichever is higher. Breaches of CCPA can attract a maximum of $2,500 in case of unintentional breaches and $7,500 in case of intentional breaches, with statutory damages enhanced in consumer lawsuits. Besides money fines, organisations could be investigated, audited, and requested to shut down data processing. Loss of customer trust, bad publicity, and loss of market value can all blow your reputation to smithereens. Additionally, businesses can suffer business disruptions in taking corrective action and establishing compliance infrastructures. It can lead to litigation by persons affected or class action lawsuits, at a cost and legal liability. There is a need not just to evade fines but also to protect brand reputation, along with establishing long-term customer relationships.
Conclusion
Adherence to GDPR and CCPA is a strategic investment in brand equity and consumer trust, not only a matter of legislation. Companies can lower their risk of fines and reputational harm by establishing robust data protection, respect for user rights, and transparent behaviour. Compliance creates consumer relationships with security and privacy aware consumers, therefore providing firms an edge in the global market. As data privacy standards change, companies must regard compliance as a continual effort, always improving policies, teaching staff, and using secure technology to maintain the highest level of responsibility and ethical data processing.
