Privacy Please: DoorDash Knocked for CCPA Violations
DoorDash faces severe fines after CCPA violations.
The importance of protecting personal information cannot be overstated. Consent laws, such as the General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in the United States, have been established to safeguard user privacy and ensure transparency in data collection. The consequences of failing to comply with these regulations are severe, turning what might seem like a minor oversight into a recipe for disaster.
GDPR fines can reach up to €20 million or 4% of the company's global annual revenue, whichever is higher. CCPA includes provisions for fines of up to $7,500 per intentional violation. Additionally, affected users can also go after businesses with legal actions. Class-action lawsuits can result in significant legal costs and further financial liabilities.
The recent public settlement between DoorDash and the CCPA made national headlines. As reported by The National Law Review in the article DoorDash Settles with California Attorney General for Alleged Violations of the CCPA:
“DoorDash, Inc. recently settled with the California Attorney General for alleged violations of the California Consumer Privacy Act (CCPA) and the California Online Privacy Protection Act (CalOPPA)… The AG’s complaint stated that DoorDash sold California consumers’ personal information (names, addresses, and transaction histories) as part of its participation in a couple of marketing co-ops that began in 2018. The sale of personal information is not prohibited by the CCPA, but if a business engages in such sales, it must notify consumers of that sale and provide them with the opportunity to opt-out of such sales. The AG’s complaint alleged that DoorDash did neither… To settle these alleged violations, DoorDash has agreed to pay a $375,000 penalty and implement a CCPA and CalOPPA compliance program. DoorDash will also have to provide annual certification of compliance for three years.”
So, in the end DoorDash may seem like they got away with a small fine given the company size, but that doesn’t include the legal fees, internal decision making, privacy policy reviews, and a massive headache which would impact company growth and morale. Is any business or business owner willing to take these risks?
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Contact us today to learn how ALTAMIT can help your business stay compliant, safe, and successful in an increasingly regulated world. Visit ALTAMIT.net to chat live with an online specialist. Or call (888) 377-ALTA, that’s (888) 377-2582 to speak with a specialist now.
