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[Perspective] California Consumer Privacy Act’s Impact on Automakers

California Consumer Privacy Act

Data privacy laws, specifically the California Consumer Privacy Act, continue to be a hot topic of discussion across industries. The automotive industry is no exception. As original equipment manufacturers (OEM) improve their ability to collect, house, and make sense of customer data, they must also improve their ability to adhere to laws and regulations. As well as protect the privacy of their consumers.

Automotive companies are collecting consumer data in many ways. Including from users online who interact with their advertising, from visitors across their various web properties, and current customers as they operate their vehicles. The collection and use of all this data has caused some concern from consumers and regulators. They feel the need to rein this in before it goes any further.

Enter the California Consumer Privacy Act

Many global automotive companies have already been impacted by new data regulations. The introduction of the European Union’s General Data Protection Regulation (GDPR) in May of 2018 forced automotive companies, as well as others, to address data privacy issues and the challenges that come with it. California now has its own version of this law that forces companies that do business with consumers in California to comply. Regardless of where the company is physically based. It’s called the California Consumer Privacy Act (CCPA) and it went into effect on January 1, 2020.

There are three key objectives that the CCPA seeks to accomplish. First, it gives consumers the right to know what information companies are collecting about them. Second, consumers have the right to ask for their information to be deleted and tell these companies not to share or sell their data. Lastly, the CCPA protects consumers against companies that do not uphold the value of privacy. They enforce this by way of serious consequences for failing to comply with the new laws

The regulations that California laid out will surely spread as other states adopt similar regulations. And because these laws aren’t based on where a company resides, it’s crucial that automotive companies ensure compliance. For example, an automotive manufacturer shouldn’t wait until the state in which it’s based introduces its own data privacy law. If the company sells its cars to consumers in California, the CCPA applies.

To learn more about the CCPA’s impact on the automotive industry, compliance hurdles to expect, and how to address data privacy challenges, you can click here or download below.

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Michael Thomas, Director of Analytics

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