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Many business owners, compliance professionals, and IT security staff have been scrambling to deal with the impact that GDPR had when it took effect on May 25th, 2018. Over 12 significant fines have been levied against organizations worth €359M in the first year. Marriot, British Airways, Lithuania, and of course, Google in France are just several well-known brands that have suffered significant fines for breaches or improperly handling sensitive consumer data.
The CCPA is following in GDPR’s footsteps when it comes to levying fines for not following the stringent guidelines of the law. For example, the California Civil Code that defines one major sanction reads “civil class action lawsuits to pay statutory damages between $100 to $750 per California resident and incident, or actual damages, whichever is greater.”
This presents a much bigger issue for most organizations, as there is no limit on the number of private civil actions that might be launched, and the costs will be high. The Equifax breach affected roughly 15 million Californians, meaning that if there were a similar breach to happen under the CCPA, in a worst-case scenario, they could have been liable for over $11 billion in claims, simply on the grounds of the consumer distress caused.
If the Equifax Breach Occurred Under CCPA Regulations the Company May Have Been Liable for Over $11 Billion in Claims
The CCPA isn’t just a state law. It will become the de-facto national standard for the foreseeable future, because of the sheer numbers of Californians most businesses in the United States will have to comply. Meaning, with nearly 40 million Californians, the majority of businesses will have at least some Californians and their PII in their databases, CRM’s, or other systems.
Companies will have to disclose to California customers what data of theirs has been collected, delete it, and stop selling it if the customer makes that request. According to PwC, enterprises have already spent more than $5 million on average preparing for the CCPA, with spending expected to rise dramatically throughout 2020.
The California Consumer Privacy Act (CCPA) is a bill intended to enhance privacy rights and consumer protection for residents of California. The CCPA intends to provide California residents with the right to:
Privacy and security professionals have had numerous questions about how the law will change the way they handle sensitive data and the various requests they may receive from their customers who request data collection information or want to know other information about their PII called DSAR’s.
In the case of the CCPA what exactly is personal information or PII? CCPA defines personal information as information that: “identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household such as a real name, alias, postal address, unique personal identifier perhaps a log in name, online identifier such as an IP address, email address, account name, social security number, driver's license number, passport number, or other similar identifiers.”
The term Data Subject Access Rights first gained popularity with the advent of GDPR. The acronym DSAR stands for Data Subject Access Rights, however you may see it used as an acronym for Data Subject Access Requests. To be clear, Data Subject Access Rights are the rights provided to the consumer by the legislation while a DSAR is the actual consumer request for information or deletion. In addition, you will see DSR, SRR, VCR, IRR, and SAR’s used interchangeably within organizations and even legal entities.
Data Subject Access Rights are the rights provided to the consumer by the legislation, while a SAR is the actual consumer request for information or deletion. In addition, you will see DSR, SAR, SRR, IRR, and VCR’s used interchangeably within organizations and even legal entities.
Regulations like the CCPA give individuals the right to request information about the way companies handle their personal information. A data subject makes his request via email, an online form, or another form of communication dictated by the guidelines of the law and the choice of the company. The company then needs to verify the requestor’s identity and existence within their database and track the request through to resolution. This process is required to be completed within 45 days to follow the compliance guidelines of CCPA.
While the legislators in California who created CCPA may have thought complying with CCPA would be simple for organizations, they underestimated the cost and impact of the legislation. Considering all the moving parts in correctly operationalizing a DSAR, organizations have struggled to implement a viable solution.
Analyst firm Gartner predicts that, by 2021, 80% of the negative financial impact of the CCPA will spiral from a failure to implement scalable processes to manage these requests unless they invest in a cost effective, automated solution.
Let’s walk through a simple bank transaction to understand the complexity of finding PII and matching it to the data subject.
Consider the following transaction:
As we have found with many data governance exercises within organizations, the massive growth in data collection and proliferation has not been accompanied by an equally matched effort in data management and data governance. In other words, organizations don’t know where all the PII of customers resides in the systems and worse how to query the systems and databases to find it.
The consequences of not correctly identifying and governing the data have been painful as data breaches, misuse of PII, and a loss of consumer trust. In response, companies have poured resources into implementing security controls to block or restrict access to their data, however, whereas security is focused on who is using the data, privacy and CCPA is about how the data is being used and for what purpose. Until now, the basic data inventory or data governance process for many companies has been a manual one consisting of application data owner surveys and spreadsheets.
DSARs push the traditional manual process to its breaking point. Not only in people resources required to manually search those 100 systems in the bank example for each DSAR, but also in the accuracy and completeness required to be defensible with the regulators. It is a big data problem, and a new approach is needed to process petabytes of data, extract key data points, and derive the relationships between them.
Both GDPR and CCPA significantly increase the requirements on businesses regarding how they address individual rights and related requests (e.g., to access or delete personal information) – specifically the type of requests they need to address and the timeline and process they need to follow to fulfill the requests. For example, GDPR requires that requests be addressed within one month, CCPA within 45 days (with some exceptions and extensions permitted).
The California Attorney General’s office published regulations that provide guidance on complying with Data Subject Access Requests (DSARs), a critical feature of the CCPA that allows consumers the right to know what personal information:
The regulations require that an organization offer two methods for consumers to submit those requests, and one of those must reflect how the business primarily interacts with consumers (an online portal, a paper form, or a toll-free number, for example). Basically, the law was designed to make it easy for consumers to request their data.
Organizations would be wise not to cut corners when it comes to complying with SAR requests. According to the ICO’s own official statistics, the mishandling of DSARs is the number one data protection issue the public is passionate about. In 2016, 42% of the 18,000+ data protection-related complaints lodged with the ICO concerned individuals’ rights to access their personal data held by organizations.
Any organization will need to have the following six capabilities to complying with DSAR’s accurately, cost-effectively, and at scale:
These six requirements clearly illustrate the need for a PII data discovery solution that handles the DSAR process from beginning to end. The solution needs to do the hard work of scouring multiple and disparate systems for PII across the globe instantly and automatically. Further, the solution must document the relationship between data and consumer, assign owners of the PII and assets the DSAR submission, and operationalize and maintain the process securely as mishandling or the data or failure to redact certain PII will undoubtedly result in fines or legal action.
Until now, the organizations have been using data governance, data classification-based security, eDiscovery, and even digital forensic tools to find and manage PII. These products are designed to find keywords or PII in files, email, and databases relying on pattern magic, using Regular Expression, GREP, or other search functionality.
For use cases in compliance legislation like PCI or HIPAA where exact search criterion was available with only a limited volume of data and a small number of machines to scan, they solved the problem, however inefficiently. The tools that were used were too slow, complicated, and inefficient to handle privacy use cases like DSAR. Because eDiscovery and data classification tools are not geared to search dozens of systems for specific information like PII, they are generally not reliable at collecting personal information accurately and further have little ability to match the data to an individual.
Technology that automates the DSAR process within the mandated response timeframe offers workflows to help employees across an organization collaborate on locating data, and ultimately provide the data to the requesting user are critical to saving organizations time and money.
CCPA will add risk, costs, and inefficiencies to organizations that do not implement an automated, intelligent solution. Manually fulfilling DSAR’s is estimated to cost $1,400 per each request when organizations fulfill the customer request manually.
The keys to minimizing costs, maximizing efficiency, and eliminating risk are implementing a solution that will:
Intelligent solutions that leverage DSR Robotic Automation and Artificial Intelligence can empower a process and DSAR workflow that substantially reduces costs, eliminates errors, and provides a more seamless and engaging customer experience.
To learn more about benefits of DSAR automation, check out the following resources:
If you’re reading this, you care about data privacy. Maybe you care about it in the scope of your job responsibilities, or perhaps you care about it personally: in the scope of your own personal life and technology use. But more likely than not, it’s a mix of the two. This is why automation of privacy efforts – and PrivacyOps -- matters. Curious? Read on.
We didn’t get here by accident. Governments around the world have not enacted data-centric regulations such as GDPR and the California Consumer Privacy Act (CCPA) out of the pure goodness of their hearts. These laws are largely in response to growing public and awareness and outcry over-exploitation of sensitive personal information: personal information that individuals feel they often have little choice in providing or controlling if they are to participate in modern society. Pick your favorite headline about a breach or data privacy violation; data privacy awareness is high and growing.
The research done by 451 Research also corroborates this. In one of our consumer survey cycles, we asked individuals how concerned they were about data privacy. A full 90% reported they were either “very concerned” or “somewhat concerned.” Only 1% reported they were “not at all concerned.”
That type of awareness is hard to ignore, and in the US, individual states are rapidly enacting legislation for data privacy and protection: following in the footsteps of California. But for businesses looking to comply with these regulations, the landscape is treacherous. Not only does California’s law – CCPA – have extraterritorial reach, but all of the individual state proposals for laws are slightly different, leading to balkanization of data privacy and protection standards in the US. Interstate organizations in the US, then, cannot sustainably approach each new regulation with an ad hoc “Whack-a-Mole” approach. They need privacy programs that are adaptable, scalable, and that leverage automation to execute data management tasks common to multiple regulatory frameworks.
But what, exactly, is the common denominator across these increasingly diverse data protection and privacy mandates? It is often easier to get caught up in the individual nuances and “checkbox” requirements of each than it is to identify core underlying principles. Identifying differences can give the organization a deceivingly simple “to-do” list that misses the big picture. In reality, data privacy and data protection regulations fundamentally exist to protect the rights of individuals, and to protect the rights of individuals, organizations need full control of ALL the personal data in their possession.
Across data privacy and protection regulations, individuals are generally given the “right to know” and the “right to say no” with regard to their data. The right to delete personal data, the right to data portability, the right to reasonable security for personal data, and the right to be notified in the case of a data breach are also all very common. Again, organizations must have a very granular understanding of what personal data is in their possession and what is happening to it at all times if these basic rights are to be fulfilled. Not knowing is not an excuse.
Unfortunately for businesses, data is more difficult to control and understand than ever before. Once personal data is ingested into an organization, it propagates into countless internal systems and data silos, and can make its way to dozens or even hundreds of third-party vendor systems that the original organization has limited control over. A growing number of end users demanding data within organizations also complicates the management of appropriate access and permissions.
And the diversity of the average business IT environment is simply staggering. According to 451 Research’s enterprise practitioner survey results, 72% of organizations that use the public cloud use more than one public cloud vendor, and a total of 8% used more than three public cloud vendors: an impressive feat considering only three public cloud providers dominate the market in the US. For organizations with 1,000+ employees, a full third – 33% -- report having more than 50 distinct departmental data silos. That’s a lot of disparate data sources to manage.
These factors amount to a perfect storm. Growing public outrage and awareness, proliferating regulations, sprawling IT ecosystems, an expanding pool of self-service data consumers, and the intensifying enterprise pressure to extract maximum insight from all available informational resources.
We’re at the end of an era; gone are the days where “reactive” business functions such as compliance and data privacy could be at odds with more “proactive” enterprise insight initiatives such as analytics and data science. In an era of rapid disruption, organizations that want to survive must align their business objectives such that data privacy and protection is no longer a burden or cost center. Rather, it must be an accelerator for better data management architecture and practices which will benefit all stakeholders.
In this context, data privacy and protection efforts are deeply intertwined with the viability of the business and the ability to meet the needs and expectations of customers: particularly in the B2C space. So, it should go without saying that data privacy and data protection needs to be an ongoing, iterative, adaptable process rather than a project-based “checkbox” approach with a deadline. New regulations will always emerge; it is up to organizations to implement processes and technology that can support evolving needs rather than just the specifications of a single law.
Automation will be critical. There is no amount of human talent and effort sufficient to scale to the data management volume challenges within a typical modern organization. There is simply too much data to evaluate and protect. Capabilities such as automated detection of potentially-sensitive data sources, automated policy controls for data, automated control of data access rights, and automated fulfillment of data subject access requests (DSARs) are all possible and – increasingly – necessary.
The PrivacyOps concept and framework looks to operationalize data privacy practices across the organization, leveraging automation, so that not only compliance objectives can be met, but so that the friction of end user data access and leverage can be reduced. Better data management and data privacy controls, when implemented correctly, can actually free up data that was formerly locked away in silos. To the average business end user, such as a data analyst, an effective PrivacyOps program will be invisible and simply make access to appropriate data sources quicker and more seamless.
What does PrivacyOps look like? It is a framework, rather than a specific tool, that takes into account people, processes, and technology. Emphasis on automation of error-prone and high-scale tasks is a must. At its most rudimentary, it breaks down into the convergence of four basic “systems:”
It’s time to stop thinking of data privacy and data protection as a burden, a barrier, or a niche responsibility within the organization. Responsible use of data, and the data management practices that enable it, can benefit everyone: from those depending on high-quality information to those that depend on the trust of consumers to cultivate long-lasting, profitable relationships.
Yes, organizations will need to leverage automation and technology to achieve these objectives. But ultimately, the discussion needs to start with business stakeholders. Getting everyone in alignment should be the first step, and establishment of effective and adoptable processes should be next. Finally, appropriate technology tools should be considered, selected, and implemented.
The perfect storm is brewing within global enterprises. The convergence of exploding data volumes and increasing data privacy regulatory requirements are creating conditions that require serious attention from businesses. IDC expects that by 2023, 102.6 zettabytes of new data to be created every year. These 102.6 zettabytes will most certainly be scattered with personal information of individuals — personal information that will be protected by the California Consumer Privacy Act (CCPA) when it goes into effect on January 1st, 2020.
Following a wave of heightened public awareness about privacy, CCPA endows data subjects with certain rights to their data and imposes penalties and grants private rights of action in the event of non-compliance. California by itself is one of the world's largest economies, so a state law enacted to protect the residents and visitors to the state will have effects far beyond its borders.
CCPA grants rights to California consumers and places requirements on businesses that make more than 50% of their revenue by selling data or have more than $25 million in annual revenue. These rights and requirements include:
Traditional manual methods of privacy compliance, driven off spreadsheets or simple web portals are no match to the real-time data control & orchestration needs of modern privacy regulations like CCPA. Following are the issues companies will see with manual or legacy compliance methods:
To comply with modern regulations like CCPA, we need to rethink privacy. Privacy needs to be operationalized with automated discovery of each individual’s data across structured and unstructured systems and layers of automation and orchestration on top of it to comply with all aspects of global privacy regulations. A PrivacyOps framework is required, which enables such individual-level data intelligence and layers of automation in a collaborative environment for various stakeholders.
Key requirements of an effective PrivacyOps framework are the following:
Adopting a PrivacyOps framework reduces costs associated with compliance, avoids legal penalties and helps avoid brand damage. For example, automating the DSAR process leveraging continuous real-time data intelligence can dramatically reduce the cost per DSAR, as well as improving accuracy and time to complete. Being able to complete DSARs within the required timeframes at scale avoids penalties and potential lawsuits and builds trust equity with customers. Similarly, breach notifications can be more surgical, leveraging accurate data intelligence to identify only those customers that were impacted – avoiding overly broad notifications that could incur more costs and penalties. And harnessing automated orchestration and data insights for vendor assessments eliminates the back and forth of emailing surveys and provides accurate data with less operational effort.
Data privacy regulations create a prime opportunity to revamp your data organization and integrations and create an integrated enterprise. Real-time compliance should be a goal, not just with DSARs, but also across as many regulatory processes as possible.
Organizations collect and store vast amounts of people’s data to provide services and enhance those over time. Consumers, on the other hand, are usually unaware of what data is being collected or used as long as continually improving services are being provided to them. CCPA (California Consumer Privacy Act) aims to give consumers more visibility, transparency, and control over their personal data. So, let's look at the four types of personal data under the CCPA, benefits of CCPA for consumers as well as organizations, the companies that fall under the ambit of CCPA, how they can comply and some key takeaways from this write-up.
According to CCPA, "Information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household" is classified as personal information.
The term "information" can be either objective or subjective depending on the category. Examples of objective information are the results of a blood test or other medical records. Subjective information is usually collected by banks and insurance companies, for example, "Mr. X is a reliable borrower." This means that certain data does not need to be verified as accurate in order to be classified as personal information.
Personal data doesn't always take the form of names, addresses, and birthdates. It can also show up as images, audio clips, or other personal information if it fulfills the CCPA requirements.
Some key examples of information that CCPA considers to be personal data are:
Personal data could also include inferences drawn from information, such as a consumer's preferences, characteristics, psychological trends, predispositions, behavior, attitudes, intelligence, abilities, and aptitudes. These forms of data also fall into the category of personal data under the CCPA.
Recent amendments to the CCPA introduced in Assembly bill 874 add the qualifier "reasonably," as in “...Information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household…”. This clarification can help in medical studies where large data sets are anonymized.
According to the CCPA definition, four requirements must be fulfilled for information to be deemed personal.
This requisite refers to information that clearly identifies a consumer or a household. This information could include a real name, social security number, and even an image of the person; these all constitute personal data under the CCPA.
This requirement refers to information that does not identify a person or household by its content but by its purpose. For example, it is debated that information gathered through cookies or alternate tracking methods can be classed as personal information that relates to a consumer and becomes a part of a consumer's personal data.
Information such as drug prescriptions, dosage, drug identification number, phone number and other information can be used to describe a consumer falls under the category of personal data under the CCPA.
In company databases and software, internal systems may embed tracking to keep data organized. Although this tracking system may not have the intent of tracking individuals, the CCPA classes any information taken from this system about an individual as personal data.
Now that we know what personal data is, enterprises need to know to whom the CCPA applies. There are two requirements that, when met, obligate an organization to comply with CCPA regulations:
1. The company collects personal data from California residents.
2. The company (or their parent company or a subsidiary) exceeds at least one of the three thresholds:
When a company fulfills these requirements, it must comply with the CCPA or deal with the repercussions.
Although this may seem like a narrow scope that excludes a lot of companies, experts have estimated that a potential 500,000 companies must comply with CCPA across the globe. This is mainly because of the financial and demographic weight of the state of California and its businesses. Whether an online business or working in the global market, chances are that an organization has interactions with at least some California resident
CCPA is designed to give consumers more power over their personal data. The rights embodied in CCPA give consumers more control over their data than ever before.
1. Consumers have the right to access their data that is held by companies, for free, up to twice every year.
2. Consumers have the right to opt-out from companies selling their data. They can also require companies to delete their information.
3. If there is a security breach in the company and a consumer's personal data is stolen, the CCPA fines the enterprise up to $750 per incident. With the amount of records stored by companies, these fines could translate to millions if not billions of dollars per data breach.
4. For children under 16, there is a mandatory opt-in for data collection. This requirement helps protect the privacy of minors.
Overall, the CCPA grants transparency to consumers from companies. From now on, companies must be upfront about the data that they possess, and they cannot sell that data without consumer consent.
With customers' ability to opt-out of data collection, data selling is more restricted and forces companies to collect their own data on a first-party basis. This strategy change means that companies have more accurate data and must know the exact origin of their data. This original data can be used to improve marketing activities and target the people that are a company's core audience.
The following are some fundamental building blocks of a state-of-the-art CCPA compliance solution:
Automatic Personal Data Discovery & People Data Graph Building
A fundamental building block of a CCPA compliance solution should be to automatically gather personal data across a myriad of systems like private apps and databases, IaaS and SaaS platforms. However, a comprehensive compliance solution shouldn’t stop there. Another critical function would be to automatically map this data to individuals, enabling a “people data graph” to ensure complete automation and compliance.
Secure Privacy Portal
A secure privacy portal with a cybersecurity focus is critical to collect and fulfill requests in a secure environment. Essentially, this portal would function as a secure interface between users who are requesting access to their data, and your employees who are fulfilling these data requests.
Robotic Automation of Data Subject Access Requests
With CCPA going into effect, we can expect a rise in DSARs being received by enterprises. Since fulfilling them requires a comprehensive search across a myriad of systems, manual fulfillment can be ruled out as a practical solution. Intelligent robotic automation can not only significantly cut down on DSAR fulfilment costs, it can also substantially reduce fulfillment times. A CCPA compliance solution built on state-of-the-art robotic automation protocols can be a powerful tool for any business operating in a post-CCPA world.
Automatically tracking the consent lifecycle across users will help a business understand when consent was given, the purpose of collection of user data, and update systems when consent is enabled or retracted by a user. Automation can accelerate this process more cost-effectively, with greater accuracy and at greater scale when compared to manual processes.
In the event of a system breach, a state-of-the-art compliance solution should follow certain protocols to inform regulatory authorities and people whose data has been impacted. This is where the people data graph can be used to inform only those customers whose data has been affected rather than having to inform all customers, saving an organization time, money and effort.
Vendor Assessment Ratings
Since PI data is often shared with vendors to ensure delivery of continually improving services to customers, a best-in-class CCPA compliance solution should also be able to conduct vendor assessments and rate them based on the type of PI data shared with them, while maintaining records of each vendor assessment for future use.
There should be automatic, routine self assessments across all internal systems being employed by a business to ensure they are compliant with the relevant data privacy regulations. The reports from these self assessments also need to be curated as well as automatically sent out to all relevant stakeholders to ensure continuous compliance with all relevant regulations. This is something that a CCPA compliance solution based on an advanced PrivacyOps framework would be able to provide.
Finally, a comprehensive CCPA compliance solution needs to have a centrally-accessible, easy-to-find and easy-to-acquire repository of all compliance records. This will ensure faster processing of compliance checks by regulatory authorities.
Visit PRIVACI.AI to learn about automating your operations and staying ahead of the pack by improving your policies and practices. Schedule a demo today and see how PrivacyOps automation and orchestration can help your business with CCPA compliance readiness.
January 2020 will usher in more than a New Year, it will also trigger the enactment of the California Consumer Privacy Act impacting about 500,000 organizations. As Patience Haggin outlines in her recent Wall Street Journal article, the CCPA “applies to any for-profit business that does business in California and collects data on California residents, as long as its annual revenue tops $25 million, or it holds personal information on at least 50,000 consumers, or it generates at least 50% of its annual revenue from selling user data.” This means that, whether or not you physically operate in the state of California, if your website serves the state’s residents, the new law applies to you as well.
The article, titled “Businesses Across the Board Scramble to Comply With California Data-Privacy Law,” comes as news to many. For us at SECURITI.ai, it’s further justification for the solution we provide, and the recognition is validating. Haggin explains how the CCPA will enable California residents to request retailers, restaurants, airlines, banks and many other companies to provide them with any personal information they may have, including individual contact information, purchases and loyalty-program history. Consumers are further empowered with the ability to request that businesses delete their data entirely, or opt out of letting them profit from it.
Haggin cites Gap Inc. as an example and includes quotes from Dan Koslofsky, associate general counsel for privacy and data security at Gap, discussing the massive undertaking that preparing for the CCPA presents to companies that haven’t previously been regulated -- i.e. anything other than healthcare or financial services.
According to the International Association of Privacy Professionals, there are over 500,000 U.S. businesses across across industries that will be required to comply when the CCPA takes effect. From food and beverage companies to retailers to health insurers, banks and airlines, there’s no industry that will go untouched by the new privacy laws.
As the amount of data we create has grown, no system to organize it has grown with it. Haggin writes, “few companies keep all their customer data in one place, and now many are scrambling to build tools to match up individuals’ data across disparate systems, such as directories, purchase histories and customer-service request logs.”
The upcoming change for businesses is significant, but not unprecedented. For instance, companies like Gap have already gone through similar compliance issues in Europe with the EU’s General Data Protection Regulation. The GDPR, which took effect last year, is similar in its scope of customer-data requirements.
According to a PricewaterhouseCoopers survey this past year, only 52% of businesses expect to be CCPA-compliant by January 2020. To illustrate the kinds of concerns businesses big and small are having, the WSJ quotes Jeff Savage, president of Sacramento’s minor league baseball River Cats, “I’m concerned about people falsely accusing us of having information on them when indeed we don’t. How do I prove to Joe Smith that I don’t have his info?”
The WSJ explains that businesses receiving data requests will be required to comply within 45 days or risk fines and litigation, and that “the law threatens steep damages in the event of a data breach—as high as $7,500 per affected person.”
Could the CCPA be a sign of things to come? The WSJ likens the law to another standard that began in California -- regulated auto emissions -- and many believe that the requirements of the CCPA may soon become the national standard. In other words, this is only the beginning for PrivacyOps.