CALIF CONSUMER PRIVACY LAW CAN AFFECT BUSINESSES ACROSS U.S.
Techlife News|December 21, 2019
CALIF CONSUMER PRIVACY LAW CAN AFFECT BUSINESSES ACROSS U.S.
If the thousands of Californians who use Josh Simons’ app for musicians demand next month that Vampr delete their personal information, Simons will be ready to comply.

The social network company expects to be one of many businesses nationwide subject to the California Consumer Privacy Act, a law that takes effect Jan. 1 and gives consumers control over the personal information companies collect, store and often share with other enterprises. Simons, who already had a user privacy policy in place before the act became law last year, has retooled the policy and the Vampr app.

“We have half a million users around the world,” Simons says. “It’s definitely something we have to keep in mind.”

Companies across the country need to be aware of the law’s complex requirements even if they don’t deal directly with consumers. It covers companies that conduct business in California, including out-of-state companies that sell products or merchandise to California residents. The law can also cover companies that make money from providing services like payment processing or website hosting to businesses that are subject to the law.

The law does have provisions aimed at exempting small businesses — companies are subject to the law if they have worldwide revenue above $25 million, collect or receive the personal information of 50,000 or more California consumers, households or electronic devices; or those who get at least half their revenue from selling personal information. But small companies can easily reach the 50,000 thresholds for collecting or receiving information — an individual who has a phone, tablet, PC at home and one at work counts as four users, not one.

Vampr is currently about 1,000 users shy of the threshold, but Simons expects the app will reach that milestone sometime in January. The Santa Monica, California-based company’s home state is its biggest market.

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