In January of 2020, the California Consumer Privacy Act (CCPA) was put into effect. The act required businesses – including automotive dealers – to change the way they collected personal data and information from consumers.
Since the CCPA’s implementation, many companies have found loopholes that “work around” statutes of the policy. Because of this, the “Californians for Consumer Privacy” created a proportion – the California Privacy Rights Act (CPRA) – to close these loopholes.
The California Privacy Rights Act Defined
The new proposition (proposition 24) was recently passed by voters in California during the November election. The CPRA is not a new law, rather an extension of the original CCPA to close company loopholes and strengthen the policy statutes.
The key addition is the way in which the law is now enforced. Before the proposition, the CCPA had very low penalties, many loopholes, and unclear policy definitions. Now, the CPRA has increased fines for violations (tripled fines for violating protections of minors as an example) and added a new agency with the sole function of enforcing the policy.
What does this mean for Automotive Marketers?
The CPRA makes third-party data usage more difficult by giving users the ability to opt out completely. On top of that, automotive marketers must examine their own first-party data as well. Automotive marketers must find new and creative ways to get consumer information. Important consumer firmographic information to be especially aware of are details such as housing, recruitment, credit, ethnicity, health conditions, and in some cases even income.
CPRA Tips for Automotive Marketers
The extension of the CCPA sets a clear precedent for how consumer privacy and consumer data will be handled going forward. Here are some tips to ensure you are compliant and ready for the potential of other states to enact similar laws.
- Depending on your size and resources, explore hiring a legal team with data or technology experience to check your compliance materials at set times of the year.
- To “make up” for the potential of lost data due to compliance, test new ways to learn about your audiences through benchmarks and historical patterns.
Summing it All Up
The CCPA law itself has not changed too much – rather the enforcement with the addition of the CPRA. In a nutshell, this means automotive marketers must be extra aware of the data they are collecting on their consumers. For a refresher on CCPA guidelines for your dealership, please reference this overview.