CCPA vs GDPR: Key Differences and Similarities

In the digital world, consumer data is the new gold and can be leveraged by organizations for various business and strategic purposes. However, consumers whose data is mined should have control over how the information they generate is used, which is where the CCPA and GDPR come into play.

The California Consumer Privacy Act (CCPA) and the European Union’s General Data Protection Regulation (GDPR) control how organizations collect and use individuals’ personal data, giving people more control over their personal information. While both laws focus on user privacy rights and give individuals control over their data, they have some significant differences beyond their jurisdiction.

This CCPA vs GDPR comparison will help you understand the two laws so you can determine which parts of them apply to you. Our article highlights the differences, similarities, and applications of both, as well as the necessary steps to comply with either or both. 

What is the GDPR?

The GDPR (General Data Protection Regulation) is a data privacy and security law established by the European Union. It updated the principles of the 1995 Data Protection Directive and was approved in 2016, entering into effect on May 25, 2018. It’s the world’s toughest privacy and security law and imposes obligations on organizations globally that target or collect data related to people in the EU.

According to the GDPR, personal data is any information that relates to an identifiable individual, whether direct or indirect identifiers. Direct identifiers include a person's name or credit card number, whereas indirect identifiers encompass non-unique traits, such as date of birth and physical characteristics.  

The GDPR uses the term "data subject" to refer to natural persons (individuals) whose personal data is being processed. For example, data subjects can be individuals who share email addresses with a company. 

The GDPR defines:

• EU residents' rights over personal data collection, use, and possession
• Legally approved ways to transfer and process personal data
• How organizations must protect personal data at rest and in transit
• Sanctions for those in breach of the rules

Europe, through the GDPR, demonstrates its firm stance on data privacy and security as data sharing becomes increasingly common and data breaches become a more frequent occurrence. The law empowers consumers to control their own personal data by holding organizations accountable for how they handle and treat this information. 

The GDPR regulates how companies worldwide process and use the personal data they collect from consumers. It also dictates how the information is moved. The law prevents organizations from misleading consumers with confusing language.

Organizations that violate the GDPR’s privacy and security standards face severe penalties. They may have to pay 4% of their global annual revenue or up to €20 million, whichever is higher. Additionally, they may be required to cease data processing and face legal consequences. Individuals or consumer groups affected by the issue can also file class-action lawsuits.

What is the CCPA?

In compliance communities, the CCPA (California Consumer Privacy Act) is often referred to as the ‘GDPR lite,’ a comparison that's well-supported by logical arguments. The law, enacted in 2020, enforces the rights of Californians regarding the privacy of their personal information.

The CCPA is meant to improve the data privacy of California residents. It gives Californians the right to know when their information is being collected, how it’s collected, if it’s sold, and the ability to opt out. The law guarantees them the same service and price, regardless of whether they choose to exercise their privacy rights.

Consumers have several rights under the CCPA: the right to access and request the deletion of their personal information, the right to opt out of the sale of their data, and the right not to be discriminated against for exercising their CCPA rights.

Businesses should comply with the CCPA if: 

• They have annual revenues of more than $25 million
• They earn 50% or more of their annual revenue by selling consumers’ personal information
• Collect, sell, or share the personal information of 50,000 or more consumers, households, or devices

The CCPA is specifically designed for for-profit businesses that collect, share, or sell personal information of California consumers, whether or not they are based in California. This means companies whose business model is built on sharing personal information. 

Companies must obtain explicit permission to collect personal data and implement measures to protect that data. Violations can cost companies up to $7,500 (per violation, if intentional), or $2,500 (per violation, if unintentional). Companies can also face legal action if they experience a data breach due to inadequate cybersecurity measures.

The CPRA, an amendment to the CCPA, went into effect on January 1, 2023. It amends the CCPA and includes additional privacy protections for consumers. The California Privacy Protection Agency was established to enforce the state's privacy laws.

10 Key Differences Between CCPA and GDPR

While the CCPA and GDPR share similarities, they also differ in several key aspects. This section highlights the major differences.

1. Type of law

CCPA

The CCPA is a statutory law passed by the California Legislature and can be enforced without further legislative action. Any CCPA violation can result in a civil lawsuit in a California state court. The CCPA protects consumers, natural persons who are California residents. 

GDPR

The GDPR is a law enacted by the European Union that became enforceable on May 25, 2018. The law focuses on data subjects, identifiable persons living in the EU who can be identified directly or indirectly. It establishes legal grounds for data subjects (consumers) to pursue claims against data controllers and processors (organizations) who have violated its provisions. EU and EEA member states can integrate the regulation into their national laws and enforce it.

2. Who they affect

CCPA

This law applies to any for-profit organization that sells goods or services to California residents or collects personal data about California residents for commercial purposes. The organization should meet at least one of the following criteria:

• Have a gross annual revenue of more than $25 million
• Collect, buy, or share data of more than 50,000 California residents. CPRA applies to companies buying, selling, or sharing the data of at least 100,000 consumers or households
• Generated half (50%) of their revenue from selling Californians’ user data

GDPR

The GDPR has wider coverage and applies to all organizations that collect data on individuals within the European Union, regardless of their location. All companies and their entities (websites and applications) that process the personal data of people in the EU must comply with this law, including e-commerce companies and non-profit businesses. The regulation applies to every data subject (user) in the EU, regardless of their citizenship status.

3. Type of data covered 

CCPA

The CCPA has a narrower scope and applies to personal data that can be directly or indirectly linked to a consumer, device, or household. Examples include a name, email address, location, biometric data, and browsing history. Unlike the GDPR, the CCPA primarily emphasizes the opt-out feature, allowing users to choose not to share their information for processing, data sharing, or selling.

The CCPA excludes this personal data:

• Data collected for clinical trials
• Medical information protected by HIPAA or CMIA
• User data that is already available on federal, state, or local government records
• Information covered by California’s Driver’s Privacy Protection Act
• Sale of data to or from consumer reporting agencies
• Personal information under the Gramm-Leach-bliley Act

The CPRA expands the scope of personal information covered by the CCPA to include Sensitive Personal Information (SPI), such as race, sexual orientation, and political views.

GDPR 

The GDPR is stricter than the CCPA, as reflected in its definition of protected data and exemptions. It encompasses all types of personal data processing, regardless of the process employed or intended purpose. This is any data that relates to the identity of the data subject directly or indirectly, such as an identification number, phone number, email address, or online identifier. Users must opt in if they wish to have their data processed.

The GDPR excludes this personal data:

• Data related to deceased persons,
• Data processed through non-automated means (no electronic methods are used)
• Anonymous data
• Data processed for personal or household purposes

4. Disclosure to users

Both the CCPA and GDPR require organizations to be completely transparent with users, explaining the type of information they collect, how it is collected, why it is collected, and to whom it is shared (or sold). Users must be informed about how they can control their data and how to contact the company. However, the two laws have some minor differences regarding disclosure, which we’ll highlight next.

CCPA

The CCPA requires businesses to send data subjects a report showing how their data was collected, processed, and to whom it was sold. This should happen within 12 months from the date of data acquisition. Businesses must also notify users when their information is sold to third parties and if the third party sells the data to another entity.

GDPR 

The GDPR grants individuals a higher degree of control over their personal data compared to the CCPA. Users must be notified when their data is collected directly, when it is acquired from another source, how it will be processed, and how long the data will be stored. Companies must also inform users about their data rights, specifically the right to have their data erased. They should be aware that they are free to withdraw their consent to data processing at any time.

5. Rights of users

When it comes to some user rights, the two regulations overlap. If your company already complies with GDPR, chances are you’re meeting CCPA requirements. But they differ in a few ways:

CCPA

• The right to know: Companies must be transparent about the personal data they collect and how they use it
• The right to access: Individuals have the right to access their personal data and request copies of it, either verbally or in writing 
• The right to opt out: Users can, in certain situations, opt out of an organization's processing of their personal data
• The right to portability: Individuals can request their personal information in easy-to-use formats like CSV or XML
• The right to erasure: Users can request the deletion of their personal data collected or stored by an organization

The CPRA amendment introduces several new rights for consumers:

• Right to correct: Individuals can request that businesses correct inaccurate data they hold about them 
• Right to limit use of sensitive personal information: Consumers can limit the use and disclosure of their sensitive personal information
• Right to opt out of automated decision-making: Consumers can opt out of their personal information being used in automated decision-making technologies, such as profiling related to their health, personal preferences, or economic situation
• Right to access information about automated decision-making: Consumers can request an explanation of how automated systems make decisions that affect them, and the likely outcomes of those decisions
• Right to data portability (expanded): Consumers have the right to request their personal data be transmitted to another entity, enhancing data portability between service providers

The CCPA gives companies 45 days to respond to consumer privacy requests, and they can extend this period by another 45 days if they notify the consumers.

GDPR

• Right to be informed: Individuals have the right to know what personal data is collected about them, its purpose, who collects it, how long it's retained, how to file a complaint, and if it's being shared
• Right of access: The GDPR grants individuals the right to submit access requests and learn from an organization whether their personal information is being processed 
• Right to rectification: Individuals have the right to ask organizations to update any inaccurate or incomplete personal data they hold about them
• Right to erasure: Data subjects can request their personal data be deleted if it's no longer needed, was unlawfully processed, they withdraw consent, or they object and the controller lacks a legitimate reason to continue
• Right to restrict processing: Consumers can tell organizations to limit how they use their personal data (without deleting it) under specific circumstances, such as when the data is inaccurate (while being checked), when they need the data for a legal claim, or their deletion request is under review
• Right to data portability: Individuals can request and receive their personal data from organizations in a usable digital format, move it between services or have it sent directly to another provider
• Right to object: Users can object to the processing of their personal data at any time, particularly for profiling, direct marketing, or when processing is based on legitimate interests or public tasks, unless the organization can prove it has strong, legitimate reasons that outweigh the individual's rights
• Rights relating to automated decision making and profiling: The GDPR grants individuals the right not to be subject to decisions based solely on automated processing (including profiling) that significantly affects them, if those decisions have a legal impact on them or significantly affect them, except in certain cases

Organizations have one month to respond to GDPR requests, which can be extended by another two months if the request is complex. A legitimate reason is needed for the extension. Failure to respond or not providing an adequate reason for an extension can result in significant penalties.

6. Right to opt out

CCPA

Under the CCPA, businesses can collect personal information from users who are at least 16 years old. However, they must provide an opt-out option and give users the opportunity to object to the collection of their data. Business websites must have a “Do Not Sell My Personal Information” link on the homepage and on all other pages where personal information is collected. Users who opt out can’t have their personal information collected for 12 months.

The CPRA gives consumers the right to opt out of their personal information being shared for cross-context behavioral advertising (including the PI of minors), but this doesn't apply to non-targeted ads. Organizations must display a "Do Not Sell or Share My Personal Information" link prominently on all their website pages.

GDPR

The GDPR expands a user’s right to opt out, mandating businesses to provide options for both opt-in and opt-out. Organizations that heavily rely on data processing must get explicit consent from users before collecting and using their information. Users can opt out of data collection and use at any time.

7. Age of consent

CCPA

Businesses must obtain explicit opt-in consent before selling or sharing the personal data of consumers aged 13 to 16 years old. Parental consent is required for children under 13 to protect minors’ data and ensure consent is verified.

GDPR

The GDPR’s minimum age of consent is 16 years, but EU member states may lower the minimum age of consent to 13. However, parental consent is necessary for children below the applicable age.

8. Cookie control 

CCPA

The CCPA and CPRA require websites to display a "Do Not Sell or Share My Personal Information" link, which allows users to opt out of the sale or sharing of their personal information. Users should also have the ability to access and delete their personal data. 

GDPR

The GDPR requires websites to display a cookie consent banner and obtain explicit user consent before placing cookies on users' devices. Users should be able to manage their preferences at any time. Businesses must also allow users to rectify or erase their personal data.

9. Security requirements

CCPA

The CCPA does not give organizations any specific security requirements but holds them liable for data breaches if they fail to implement “reasonable security procedures. It offers more flexibility but less guidance than the GDPR. Consumers can also take action against companies that do not maintain adequate security measures.

The CPRA expands the requirements by mandating that businesses conduct perform cybersecurity audits, regular risk assessments, and maintain records of data processing.

GDPR 

Under the GDPR, organizations are required to implement appropriate technical and organizational security measures, such as risk assessments, encryption, access controls, regular monitoring, and data breach notification within 72 hours. The security measures are based on the sensitivity and volume of data processed. 

10. Fines and penalties for non-compliance

CCPA

CCPA violations fines are imposed by the California state court and attract lower fines than GDPR violations. Here’s the breakdown for CCPA violations:

• $7500 for intentional violations
• $2500 for unintentional violations
• $100-750 in damages in civil court

The CCPA provides businesses with a 30-day cure period to rectify the violation; however, the CPRA removes this provision (but it still applies in private actions brought by consumers due to data breaches). Additionally, the amendment imposes a $7,500 penalty for violations involving the privacy rights of minors under the age of 16.

GDPR

The penalties of the GDPR are on the higher side, and fines are divided into two categories depending on the severity of the violation: 

• Up to €10 million or 2% of annual global turnover for less severe violations, whichever is higher
• €20 million or 4% of annual global turnover for severe, high-risk violations, whichever is higher

GDPR fines are imposed by data protection authorities in the EU Member States.

When is it Legal for Businesses to use Personal Data?

Organizations that want to comply with both the CCPA and GDPR must consider the lawful bases for processing data. They must also provide opt-in or opt-out consent options whenever necessary. Here’s how the two differ:

CCPA

The CCPA allows businesses to process user data, provided that users can easily opt out of having their personal information sold or shared. For example, websites can have a banner, a form, or a link with the words “Do Not Sell My Personal Information.”

GDPR

The GDPR allows organizations to process data if they meet at least one of these six legal grounds:

• Consent: If an individual agrees to have their personal data processed, they can revoke this consent at any time
• Contract: If data processing is essential for fulfilling a contract with an individual, or a necessary step before entering into one, like when providing a service
• Legal obligation: When processing personal data is required to meet legal obligations, like tax reporting
• Vital interests: When processing data is necessary to protect someone's life, like during an emergency
• Public task: When data processing is necessary to perform a task in the public interest, and it's clearly rooted in law. For example, to prevent the spread of a highly contagious disease
• Legitimate interests: When data processing is necessary for the legitimate interests of the organization or a third party, but only if these interests don't infringe upon the individual's fundamental rights 

Summary: CCPA vs GDPR

In our detailed CCPA vs GDPR comparison, we’ve explained that both laws give individuals greater control over how businesses use their personal information. Both regulate companies that collect and use data in various ways. Here’s a brief summary of the two laws:

CCPA

• This law applies to companies operating in California and those that handle or share the personal information of California residents
• Provides California residents with increased transparency and greater control over how businesses collect and use their data.

GDPR

• Applies to organizations, regardless of their location, that process the personal data of EU residents
• Gives EU residents increased transparency and control over how organizations collect and use their data 

How can Atlas Systems Help?

ComplyScore®, our compliance automation platform, helps businesses comply with CCPA and GDPR laws by providing features such as automated compliance tracking, risk management, and policy management. Real-time visibility into compliance enables organizations to continuously monitor their data privacy posture, quickly identify issues, and take corrective action to meet CCPA, GDPR, and other regulations.

Our powerful compliance management software, ComplyScore®, helps organizations comply with GDPR and CCPA requirements. It centralizes regulatory requirements, automates risk management, and delivers real-time alerts to minimize violations and ensure adherence to privacy laws. 

Stay ahead of regulations with Atlas Systems. Discover how today.

Frequently Asked Questions

1. Was the CCPA modeled after the GDPR?

No, the CCPA was not modeled after the GDPR. It has a limited scope and only applies to California residents, not to individuals outside the United States. The GDPR protects the personal data of EU residents, regardless of where it’s processed. Additionally, the CCPA only applies to organizations with over $25 million in yearly revenue or more than 50,000 Californian users. On the contrary, the GDPR applies to any organization that deals with the data of EU residents. Lastly, the GDPR has very detailed rules, while the CCPA leaves more room for interpretation. 

2. Is CCPA stricter than GDPR?

Determining whether the CCPA is stricter than the GDPR is challenging, as the two regulations have distinct scopes and focuses. Many experts feel the GDPR is generally stricter regarding data protection and privacy, but the CCPA is also strict in certain areas, like the sale and sharing of personal information.

3. CCPA vs GDPR: Which is better?

Neither is better than the other, as both the CCPA and GDPR are impactful privacy laws, but they have different scopes and strengths. The GDPR has a broader scope, protecting the data of all EU residents, whereas the CCPA is limited to California residents. The CCPA provides users with slightly better privacy control regarding opt-in consent. However, the GDPR has a broader global impact and serves as a blueprint for international privacy regulations.

4. Who needs to comply with the CCPA and GDPR?

Any business that operates in California and has an annual gross revenue of over $25 million, earns 50% or more annual revenue from selling or sharing personal information, or sells, buys, or shares the personal data of 100,000 or more California consumers must comply with the CCPA. The GDPR, the EU's main data protection law, applies to any organization that processes the personal information of individuals within the EU. Both laws protect consumer privacy but are based on different criteria and apply to different jurisdictions.