Changes to California Law May Affect B2B Data Privacy

The California Consumer Privacy Act (CCPA) has addressed data privacy issues for the state's residents since 2020. It was amended by the California Privacy Rights Act (CPRA), which went into effect on January 1, 2023. These laws have placed requirements on businesses that collect, store, process, or transfer data related to California residents. One aspect of the law that people may not be aware of involves B2B data privacy, and businesses will need to understand the requirements that will apply when they handle data related to other businesses that are located in California or employ California residents.

How CCPA/CPRA Addresses Data Related to B2B Contacts

When the CCPA was initially passed, it included an exception for B2B data. However, following the implementation of the CPRA, this exception was eliminated, and the CCPA now regulates data about B2B contacts. These contacts may include any personnel working for a California business, including owners, officers, directors, managers, employees, and contractors, as well as a business's vendors, suppliers, or customers.

B2B contacts will have the same rights as consumers in California. Specifically, they will have the right to know what data about them is being collected, the right to refuse to have their data shared with other parties, and the right to limit the use or disclosure of sensitive personal information. They will also have the right to correct inaccurate information or delete personal information that has been collected.

Addressing Issues Related to B2B Data Privacy

To ensure that they are in compliance with California's data privacy laws, businesses may need to take a number of steps, including:

• Data mapping - Businesses will need to understand the types of data that are being collected, stored, and processed. This will help identify data about B2B contacts and ensure that the proper procedures are being followed when storing this information or disclosing it to other parties.

• Updating notices and privacy policies - B2B contacts should be informed about the types of personal information that are being collected, how this data will be used, and whether it can be disclosed to third parties. Businesses may need to update their privacy policies and inform B2B contacts of these changes while ensuring that contacts understand their rights and options for deleting data or limiting the disclosure of personal information.

• Assessing how data is used - Businesses may need to review their policies and procedures regarding the collection, retention, processing, and disclosure of data about B2B contacts. To ensure that people's rights are protected, businesses may need to make adjustments to policies or implement new data processing procedures.

• Data security - To prevent the release of personal information to unauthorized parties, businesses may need to review their security systems and put new measures in place to prevent data breaches or limit the access of sensitive information by employees, contractors, vendors, or other parties.

Contact a United States B2B Data Privacy Dispute Resolution Professional

California's data privacy laws are just one example of recent changes that may affect businesses that collect personal information about B2B contacts or consumers. Other laws have been put in place throughout the United States, and additional changes are likely to affect businesses in the future. As these laws go into effect, disputes may arise related to the collection of certain types of data, the use of this information, and the disclosure of data to other parties. Resolving these issues through litigation can be very costly and time-consuming, and in many cases, parties can benefit by using mediation to negotiate agreements.

At Privacy & Technology Mediation Services, we provide dispute resolution services, helping businesses resolve concerns about data privacy and other related issues. While we are located in Chicago, we provide services to businesses throughout the United States, and we can advise them on the ways they may be affected by data privacy laws in different states. To learn more about how we can assist with these cases, contact a Chicago data privacy mediation professional at 312-767-3900 and arrange a free consultation.