In-Depth Analysis of the Oregon Consumer Privacy Act (OCPA)

Compliance Hub

27 Aug 2024 — 4 min read

The Oregon Consumer Privacy Act (OCPA), effective July 1, 2024, represents a significant advancement in consumer data privacy legislation in the United States. As part of a broader movement among states to enhance data protection, the OCPA imposes comprehensive obligations on businesses while granting robust rights to consumers. This article explores the key features of the OCPA, its implications for businesses, and the rights it affords to Oregon residents.

Scope and Applicability

The OCPA applies to businesses that either conduct operations in Oregon or offer products or services to Oregon residents. Specifically, the law targets entities that meet one of the following criteria:

Processing Threshold: Businesses that process the personal data of at least 100,000 Oregon residents annually, excluding data collected solely for payment transactions.
Revenue and Processing Threshold: Businesses that process the personal data of over 25,000 consumers and derive more than 25% of their annual gross revenue from the sale of consumer data.

Unlike some state privacy laws, the OCPA does not set a minimum revenue threshold for applicability, focusing instead on the volume of data processed and revenue from data sales.

Consumer Rights

The OCPA grants Oregon residents a suite of rights to control their personal data, including:

Right to Know: Consumers can request information on whether their data is being processed and the categories of data involved.
Right to Access: Consumers can obtain a copy of their personal data held by a business.
Right to Correction: Consumers can request corrections to inaccuracies in their personal data.
Right to Deletion: Consumers can request the deletion of their personal data.
Right to Data Portability: Consumers can receive their data in a portable format.
Right to Opt-Out: Consumers can opt out of data processing for targeted advertising, the sale of personal data, and profiling.

Additionally, the OCPA introduces a unique provision allowing consumers to obtain a list of specific third parties to whom their data has been disclosed, enhancing transparency and control over data sharing.

Special Protections for Sensitive Data and Children

The OCPA requires businesses to obtain explicit consent before processing sensitive data, which includes information related to race, ethnicity, religious beliefs, health, and biometric data. For children under 13, businesses must comply with the federal Children’s Online Privacy Protection Act (COPPA). For minors aged 13 to 15, businesses must obtain opt-in consent for targeted advertising and the sale of personal data.

Business Obligations

Businesses subject to the OCPA must adhere to several obligations:

Data Minimization: Limit data collection to what is adequate, relevant, and necessary for the disclosed purposes.
Transparency: Provide clear privacy notices detailing data processing activities and purposes.
Data Protection Assessments: Conduct assessments for high-risk processing activities, such as targeted advertising and profiling.
Security Measures: Implement reasonable security practices to protect consumer data.
Non-Discrimination: Ensure consumers are not discriminated against for exercising their rights.

Enforcement and Penalties

The Oregon Attorney General is responsible for enforcing the OCPA. Businesses found in violation may face civil penalties of up to $7,500 per violation. Initially, businesses are granted a 30-day cure period to address violations, but this period will expire on January 1, 2026, after which immediate penalties may be imposed.

Conclusion

The Oregon Consumer Privacy Act sets a high standard for data privacy protection, emphasizing consumer rights and business accountability. As businesses prepare to comply with the OCPA, they must conduct thorough data audits, update privacy policies, and implement robust data protection measures. The OCPA not only aligns with other state privacy laws but also introduces unique provisions that enhance consumer control over personal data. As the regulatory landscape continues to evolve, the OCPA serves as a critical model for balancing innovation with privacy protection.

Citations:
[1] https://equinoxbusinesslaw.com/blog/legal-update-oregon-consumer-privacy-act/
[2] https://ktvz.com/news/oregon-northwest/2024/07/02/new-state-law-takes-effect-giving-oregonians-major-new-consumer-privacy-protections/
[3] https://www.upguard.com/blog/what-is-the-ocpa
[4] https://termly.io/resources/articles/oregon-consumer-privacy-act/
[5] https://www.didomi.io/blog/oregon-consumer-privacy-act-ocpa
[6] https://secureprivacy.ai/blog/oregon-consumer-privacy-act-guide