Many marketers are not sufficiently prepared for the challenges likely to be presented by the California Consumer Privacy Act (CCPA), according to Dan Jaffe, the Association of National Advertisers’ (ANA) group EVP/government relations.

Jaffe discussed this subject at the trade body’s 2019 Data & Measurement Conference. More specifically, he reported, these rules have now entered into a period of formal review and commentary that likely will result in their official enactment by January 1, 2020 at the earliest, and July 1, 2020 at the latest.

“We are really almost at the finish line,” he said. (For more, read WARC’s in-depth report: Imminent arrival of California Consumer Privacy Act (CCPA) may catch marketers by surprise.)

One piece of advice: hope for the best, Jaffe suggested, but “prepare for the worst”. A second guideline for marketers: do not delay. “Lost time is never found again, and time is really running out on this,” he added.

Indeed, Jaffe offered, the advertising/marketing/data ecosystem is largely unprepared for an inevitable change in the way consumer data is to be handled in the Golden State.
He quoted a study from PricewaterhouseCoopers, the professional services firm, that found 48% of companies covered by the CCPA are unlikely to be ready for this legislation.

And there is a good reason for this. “I can’t remember anything that was as complex in itself as [the CCPA]. I’ve never worked on anything that was so badly drafted [and] so ambiguous,” Jaffe said.

Such ambiguity, for example, applies to when the law’s 12-month “look back” period – which covers data collection and usage practices – begins. There is also confusion about what it might mean for loyalty programs, too.

A further pain point for marketers: “The CCPA is the first privacy law which is both online and offline [in scope]. So, the data collected offline is covered under this act, as well as the data that was collected online,” said Jaffe.

Moreover, he said: “This legislation is also going to have tremendously difficult impacts on third parties. Many companies are very reliant on third-party data.

“But, before they can sell any data, these third parties are going to be required to [offer] consumers the opportunity to opt out” of their programs. In short, Jaffe offered: “This may soon become an extremely fraught process.”

Sourced from WARC