CCPA vs. GDPR: Compliance Comparison

The California Consumer Privacy Act (CCPA), often called the U.S. version of the European Union’s General Data Protection Regulation (GDPR), has prompted many American companies to overhaul their approach to privacy protection in data processing activities.

Assuming that the CCPA is simply “GDPR Lite” can result in non-compliance with California law. The two privacy laws have many differences, and compliance with the GDPR does not necessarily assure compliance with the CCPA.

To meet the standards required by each of these data protection laws, it’s important to understand their differences. Below is a detailed comparison of the CCPA and the GDPR.

What Are CCPA and GDPR?

Governments have enacted laws such as the CCPA and GDPR to give people more control over their personal information. Both laws govern how businesses can use the data they collect about consumers.

• ​CCPA: Protects Californians, allowing them to understand how personal data is gathered and used.
• ​GDPR: Governs data privacy across the EU, providing a unified framework for data protection. It also affects many companies in the United States.

Both laws are based on the idea that personal data belongs to the individual, not the organization collecting or using it. This means individuals can exercise certain rights over their data, and organizations have duties of care when handling it.

• ​GDPR: Requires a legal reason for processing the personal data of EU residents, with the first legal basis being permission from the individual.
• ​CCPA: Defines “sale” of personal data, but does not require prior consent from individuals for a business’s use or sale of personal data to a third party.

Who Has to Comply With GDPR vs. CCPA?

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  CCPA: Protects consumers (natural persons residing in California). Applies to for-profit organizations that conduct business in California and gather personal data from California residents, if they meet one of the following:

  • ​Yearly gross revenues of at least $25 million;
  • ​Purchased, received, sold, or distributed the personal information of at least 50,000 customers, households, or devices;
  • ​At least half of yearly income is derived from the sale of customer information.
  • ​Also specifies rules for service providers handling customer data on a company’s behalf.
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  GDPR: Focuses on data controllers (organizations that select how and why to use the data of EU residents) and data processors (companies that handle personal data on behalf of controllers). Applies to non-EU controllers that process personal data of EU citizens to provide commercial products/services or monitor behavior, and if the controller or processor has a physical presence in the EU.

Both laws influence a wide range of globally active businesses.

How Do CCPA and GDPR Affect My Business?

The CCPA and GDPR have many similarities, especially with the California Privacy Rights Act (CPRA) strengthening the CCPA with additional protections (effective January 2023).

• ​Both define “personal information” similarly: information that can identify, relate to, or be associated with a specific person (e.g., names, addresses, identifiers, genetic material, images, internet search histories).
• ​CCPA provides a list of examples; GDPR leaves the definition broad.
• ​Both give individuals the right to know if and why their personal information is collected or processed.
• ​Companies must implement organizational and technical capabilities to comply with these requests.
• ​CCPA asserts the right to non-discrimination (illegal to refuse products/services, charge different prices, or provide lesser quality based on data rights exercised).
• ​Right to rectification (correct incomplete or erroneous records) is included in GDPR and forthcoming CPRA updates.
• ​CCPA has exemptions for certain business-to-business communications or transactions.
• ​Both laws provide a “right to be forgotten” (companies must erase customer information unless legally required to maintain it).
• ​CCPA contains exceptions for completing transactions, legal obligations, security, free speech, research, and lawful uses.
• ​Penalties:
  • ​GDPR: Up to €20 million (over $24 million) or 4% of yearly global revenue.
  • ​CCPA: $7,500 per willful infraction, $2,500 for subsequent offenses. CPRA raises penalties for breaches involving minors under 16 to $7,500 per incident.
  • ​CCPA allows class-action lawsuits ($100–$750 per customer/event), which can add up quickly.

How Do the CCPA and the GDPR Differ?

• ​Scope:
  • ​GDPR: Applies to all companies worldwide that access/process data of EU citizens in the EU.
  • ​CCPA: Applies to for-profit organizations doing business in California and meeting certain thresholds (see above).
• ​Protected Information:
  • ​Both protect similar types of information.
  • ​CCPA also protects data privacy of households and computing devices in the home; GDPR only protects individuals.
• ​Data Access and Portability:
  • ​GDPR: Data subjects can receive copies of their data in a structured, machine-readable format and request transmission to other controllers.
  • ​CCPA: Businesses must provide data within 45 days in a readily usable format for easy transmission.
• ​Terminology:
  • ​GDPR: Uses “processing” for any data activity.
  • ​CCPA: Breaks down into “processing,” “selling,” and “collecting.”
• ​Consent:
  • ​GDPR: Requires opt-in consent for data collection.
  • ​CCPA: Requires a process for individuals to opt out.

Is the CCPA Stricter Than the GDPR?

Most professionals consider the CCPA less stringent than the GDPR. If your company is GDPR-compliant, CCPA compliance should be an easier adjustment. However, GDPR compliance does not guarantee CCPA compliance. Each law has unique requirements.

Does the GDPR ‘Cover’ the CCPA?

No. Compliance with one law does not equal compliance with both. GDPR compliance can help with CCPA compliance, but the CCPA applies broader regulations to a smaller, separate group. The CCPA also requires more frequent reviews and faster turnaround on customer data requests.

What Are the Similarities Between GDPR and CCPA?

Both laws focus on data subjects’ rights and emphasize consumer rights over business restrictions. They aim for transparency and increased awareness of a person’s data lifecycle.

• ​GDPR: Guarantees eight rights.
• ​CCPA: Mentions five rights, four of which overlap with the GDPR:
  • ​Right to know or be informed: Data subjects must be informed before data collection.
  • ​Right to access: Data subjects can request access to their personal information.
  • ​Right to erasure: Data subjects can request deletion of their data (right to be forgotten).
  • ​Right to object: CCPA allows objection to selling personal information; GDPR allows objection to direct marketing and automated profiling.
• ​CCPA includes the right to service without discrimination; GDPR does not explicitly, but it is implied.
• ​GDPR allows for rectification and rejects automated decision making/profiling; CCPA does not currently, but CPRA will address this.

Automate GDPR and CCPA Compliance

GDPR and CCPA compliance require internal controls, technology safeguards, comprehensive audits, and documentation. Automated workflows can streamline requests and help meet compliance timelines. Maintaining a single source of truth for documentation and reporting supports audits and ongoing compliance efforts.