New Data Regulations Coming into Force This Year: Are You Ready?

Introduction

As we enter 2023, there are several new data regulations coming into effect that organizations need to prepare for. These regulations aim to enhance data privacy and security for individuals, while imposing stricter requirements on companies that handle personal data.

I will be ready for these new regulations by understanding what they entail and taking necessary steps to ensure compliance within my organization. Being proactive now will prevent a scramble later when the regulations take effect and potential penalties apply.

In this article, I will provide an overview of the major upcoming data regulations and outline actionable steps I plan to take to comply with them. The key regulations I will cover include:

California Privacy Rights Act (CPRA)

The CPRA enhances the landmark California Consumer Privacy Act (CCPA) that came into effect in 2020. While the CCPA governs how businesses collect, use, and disclose personal information of California residents, the CPRA further expands consumer rights over their data.

Key provisions of CPRA include:

• Right to correct data: Consumers can request corrections to inaccurate personal information held by businesses.

• Right to limit use and disclosure: Consumers can limit how their sensitive information is used or disclosed.

• Expanded opt-out rights: Businesses can’t use personal data if a consumer opts-out of its sale or sharing.

• Stronger enforcement: California Attorney General is authorized to impose fines for CPRA violations.

To comply with CPRA, I plan to take the following steps:

• Update privacy policies to reflect new consumer rights under CPRA
• Build mechanisms for consumers to submit data correction requests
• Enable consumers to limit use and disclosure of sensitive information
• Ensure we honor consumer requests to opt-out of data sales/sharing
• Train staff on CPRA provisions and how to field consumer requests

Virginia Consumer Data Protection Act (VCDPA)

Virginia has adopted its own state consumer privacy law, the VCDPA, which goes into effect on January 1, 2023. It shares similarities with CCPA/CPRA but also has unique requirements.

Key aspects of VCDPA include:

• Consumer rights: Consumers can access, correct, delete, and obtain copies of personal data held by businesses.

• Opt-out rights: Consumers can opt-out of targeted advertising and sales of personal data.

• Data protection: Businesses must minimize data collection/retention and implement data security safeguards.

• Enforcement: Virginia Attorney General has authority to enforce violations.

To comply with VCDPA, here are the steps I am taking:

• Update online privacy policy with VCDPA-specific consumer rights
• Build user interfaces for consumers to access, correct or delete their data
• Enable opt-out mechanisms for data sharing and targeted advertising
• Review/minimize data retention periods
• Conduct risk assessment and implement data security controls like encryption
• Train staff on VCDPA and how to address consumer requests

Colorado Privacy Act (CPA)

With the passage of the CPA, Colorado becomes the latest US state to enact its own privacy legislation. The CPA takes effect on July 1, 2023.

Notable aspects of the CPA include:

• Consumer rights: Right of access, correction, deletion and opt-out of data sale/sharing.
• Data protection: Requirements like data minimization, retention limits, and security safeguards.
• Oversight: New Privacy Board will have rulemaking and enforcement powers.

My action plan to achieve CPA compliance includes:

• Update online privacy policy to inform consumers of their CPA rights
• Develop portals and forms for user requests to access, correct, delete or opt-out
• Review data collection, storage, processing to minimize unnecessary exposure
• Implement rigorous data security protections like encryption and access controls
• Designate member of leadership team to liaise with CO Privacy Board
• Conduct training to ensure staff understand CPA obligations

Federal Privacy Legislation

While state-level privacy laws pose compliance challenges, the possibility of comprehensive federal privacy legislation could simplify the regulatory landscape. The American Data Privacy and Protection Act (ADPPA) has bipartisan support in Congress and stands the best chance of being enacted into law.

If ADPPA passes, key provisions would include:

• Individual rights like access, correction, deletion and opt-out
• Requirements for data minimization, de-identification, retention limits
• Stricter rules on use of sensitive data like health, location, finances
• Robust cybersecurity safeguards and breach notification
• Enforcement by Federal Trade Commission (FTC)

To prepare for federal privacy law, I am taking proactive steps like:

• Closely monitoring progress of ADPPA through Congress
• Evaluating if current data practices adhere to expected federal standards
• Planning how to operationalize new requirements like data minimization
• Budgeting for any systems/process changes needed for federal compliance
• Training staff on likely federal privacy law rights and obligations

Conclusion

With multiple data regulations on the horizon, organizations must start preparing now to avoid falling out of compliance. By understanding these laws and proactively updating data practices and policies, I aim to smoothly align with new requirements and avoid penalties. Protecting consumer privacy is a priority, and I will leverage these regulations as an opportunity to build greater trust. With proper planning and execution, I can effectively comply with data regulations in 2023 and beyond.