Yes, non-California-based startups can indeed be affected by the California Consumer Privacy Act (CCPA).
If a startup collects personal information from California residents, it must comply with CCPA regardless of where the company is located.
This law applies to any business worldwide that meets certain thresholds, such as annual gross revenues over $25 million, buying, receiving, selling, or sharing the personal information of 50,000 or more California residents, households, or devices, or deriving 50% or more of its annual revenues from selling California residents’ personal information.
What specific criteria make a non-California-based startup subject to CCPA?
A non-California-based startup becomes subject to CCPA if it actively engages in transactions with California residents or collects their data in some form.
This can include any online business operations where data is amassed through website interactions, e-commerce, or software applications accessible by people in California.
Particularly, if it processes large volumes of personal data or its business model involves monetizing such data, it needs to adhere to CCPA’s regulations to avoid penalties and ensure consumer trust.
How can a startup determine if they are collecting data from California residents?
Determining if a startup is collecting data from California residents hinges on an analysis of its data collection and processing activities.
Tools and analytics can monitor traffic and user engagement to pinpoint geographical demographics.
Startups must scrutinize their online platforms, customer databases, and marketing campaigns to identify if they interact with or gather personal information from California residents. This involves reviewing website analytics, customer sign-ups, and transactions for indications of Californian activity.
If you are in pursuit of more details on how to ensure your startup is CCPA compliant, check out our comprehensive CCPA Compliance Guide for Tech Startups for actionable insights and guidance.
