Power to Consumers and CCPA’s Effect

2020 is the year of the Consumer, especially when it comes to knowing exactly how companies are collecting and using your data. The California Consumer Privacy Act, referred to commonly as CCPA, was originally signed into law in June of 2018. “CCPA is designed to inform consumers on what personal data is being collected about them, and give them the opportunity to choose to protect their privacy,” said Natalie Overfelt, Director of Sales Training at Division-D.

Since then, law has undergone a long revision process, with additional clarifying amendments being signed in October 2019. The law took hold on January 1, 2020, giving businesses that collect consumer data a fairly quick turnaround to update practices to meet compliance. “There is a lot of pressure on all of the big players, publishers, data partners, servers, DSPs and more, to act quickly when new laws and regulations go into effect,” said Shalyn Wismer, Senior Director of Sales at Division-D.

While the industry is becoming accustomed to moving quickly in order to follow new regulations, there is the additional challenge of maintaining competitive advantage. “At Division-D, we pride ourselves on being proactive to industry changes and pivoting in order to ensure that we remain a trusted partner in the space,” said Overfelt. “Our ability to efficiently evolve has allowed us to maintain our success over the past 17 years.”

Shifting power over personal data to consumers has already had a positive impact, despite the law being in effect for less than two months. Transparency between consumers and brands builds trust and increases consumer receptiveness to advertising. “Fear and skepticism can build when users are blind to how their data is being used. Laws like CCPA and GDPR ultimately help protect the relationship between advertisers and consumers,” said Wismer.

CCPA in entirety is available on California’s legislative information website. With businesses and consumers both reaping the benefits of increased data transparency and control, CCPA may very well help to shape data privacy regulations moving forward. “It’s causing a ripple effect for other states to follow suit and draft their own, similar regulations,” said Overfelt. “Businesses who choose to be fully compliant will likely gain a competitive advantage by gaining trust from consumers.”

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