What Is the Difference Between the CCPA & GDPR?

Understanding data privacy laws is crucial for businesses and consumers alike. The California Consumer Privacy Act (CCPA) and the General Data Protection Regulation (GDPR) are two landmark privacy regulations that give individuals control over their personal data. While both aim to protect privacy, they differ in scope, requirements, and enforcement.

Overview: CCPA vs. GDPR

The CCPA went into effect on January 1, 2020, granting California residents rights over the data businesses collect about them. In contrast, the GDPR, effective since May 2018, applies to all 27 European Union member states and governs how organizations handle personal data.

Though some call the CCPA the “California GDPR,” it differs in key areas such as legal framework, consent requirements, and the breadth of data protection.

Key Differences Between CCPA and GDPR

1. Geographic Scope and Applicability

• CCPA: Applies only to California residents. Businesses must meet specific thresholds (e.g., revenue over $25M, processing data of 50,000+ Californians annually, or deriving 50%+ revenue from selling personal information).
• GDPR: Applies to any organization worldwide that collects data from EU citizens or individuals located in the EU, regardless of where the company is based.

Takeaway: GDPR has a broader, extraterritorial scope compared to CCPA.

2. Legal Framework and Consent

• GDPR: Requires a legal basis for processing data. Consent must be explicit, informed, and freely given, with the option for users to withdraw it at any time.
• CCPA: Does not require prior consent to collect personal data. Consumers can opt out of the sale of their data but cannot prevent initial collection.

Key Insight: GDPR emphasizes privacy by default, while CCPA focuses on transparency and consumer control.

3. Rights Granted to Individuals

Both laws grant important rights but differ in specifics:

Note: The key differentiator is prior consent, unique to GDPR.

4. Types of Data Covered

• CCPA: Covers personal information, including household data that can identify an individual.
• GDPR: Covers personal data, including special categories (sensitive data).

Observation: CCPA’s definition is broader in some aspects but less strict than GDPR’s sensitive data categories.

5. Enforcement and Penalties

• GDPR: Enforced by national data protection authorities. Fines can reach €20M or 4% of global turnover, depending on the severity of violations.
• CCPA: Enforced by California’s Attorney General, with fines up to $2,500 per violation.

Expert Note: GDPR enforcement includes audits and guidance, whereas CCPA enforcement is more reactive and limited in supervision.

6. Who Is Protected?

• CCPA: Protects California consumers—residents whose personal information is collected by qualifying businesses.
• GDPR: Protects data subjects—any identifiable individual in the EU, including non-EU citizens physically present in the EU.

Summary: CCPA vs. GDPR at a Glance

• CCPA: Transparency-driven, consumer-focused, opt-out-based, applies to California.
• GDPR: Consent-driven, privacy-first, applies across the EU and globally, includes strict enforcement and sensitive data protection.

Both laws improve privacy and data protection, but GDPR offers stronger, more comprehensive safeguards, while CCPA provides targeted rights for California residents.

How Businesses Can Prepare

1. Map your data: Identify personal information collected, processed, and shared.
2. Update privacy policies: Clearly outline consumer rights and how data is handled.
3. Implement consent management tools: Ensure GDPR-compliant consent for EU visitors.
4. Add opt-out mechanisms: Provide CCPA-compliant “Do Not Sell My Info” links for California consumers.
5. Train employees: Build awareness of privacy obligations under both laws.

Pro Tip: Aligning with GDPR standards often helps businesses remain compliant with CCPA, simplifying compliance efforts.