What are CCPA Penalties for Violating Compliance Requirements?

More than ever, consumers are keeping a close eye on how companies handle their personal data – which means your customers are definitely paying attention. If your business collects personal information from California residents, you better believe the CCPA isn’t something you can afford to ignore.

As of February 2025, 19 U.S. states have signed consumer privacy laws, but California led the way back in 2018 developing the first state-level privacy bill. Since then, the momentum around data privacy has only grown stronger.

The California Consumer Privacy Act (CCPA) was designed to give consumers more control over their personal data while helping businesses handle it responsibly, meaning it’s far from just another piece of red tape. For SaaS companies, not taking it seriously could mean facing some serious CCPA penalties. But don’t sweat it – we’re here to break it all down for you (in plain English, promise).

Understanding the CCPA

So, what exactly does the CCPA mean for your business? 

It lays out a clear set of rights for California residents when it comes to their personal information – from knowing what data is being collected, to requesting its deletion, and even opting out of having it sold. In other words, it puts the power back in the hands of the consumer.

In short: if your company is collecting or sharing personal data – think names, emails, IP addresses, and even browsing behavior – you might be on the hook to follow CCPA rules.

And let’s make this very clear: your business doesn’t need to be headquartered in California to be impacted. If your company conducts business in California and meets any of the following criteria, compliance with the CCPA is required – regardless of your physical location:

• Annual Gross Revenue: Your annual gross revenue is over $25 million.
• Volume of Personal Information Handled: You buy, sell, or share the personal information of 100,000 or more California residents or households annually. It’s important to note that this specifically pertains to California residents or households, not just any consumers. 
• Revenue from Selling Personal Information: You earn 50% or more of your annual revenue from selling California residents’ personal data.

Yes, that’s right – the CCPA doesn’t just target the big guys. Even startups and scaling tech companies can fall under the CCPA umbrella.

What are the CCPA Compliance Requirements?

Achieving CCPA compliance isn’t as scary as it sounds, but it does take some effort – and it’s definitely not something you can just check off the list and forget about. It takes time, a solid process, and a team that actually understands what’s at stake. The good news? Once you know what to tackle, it becomes way more manageable.

Here’s a quick peek at what you’ll need to do:

• Update your privacy policy: Your privacy policy is your public-facing promise. It needs to clearly spell out what personal data you collect, why you collect it, how it’s used, and how consumers can opt out or request deletion. No vague language – clarity is key.
• Create processes for handling data requests: Under CCPA, consumers can request access to their personal data, ask for it to be deleted, or opt-out of its sale. You’ll need a reliable and secure way to verify these requests and respond promptly. Bonus points if the process is user-friendly.
• Add a “Do Not Sell My Personal Information” link: If you sell consumer data on your website, this link needs to be clearly visible on your homepage. And yes, it’s a regulatory requirement – not just a nice-to-have.
• Train your team: Everyone who handles personal data – from marketing to customer support – should understand CCPA basics and know the rules. That way, you’re not just staying compliant, you’re also building a security-conscious company culture.
• Secure your data: Having strong security controls in place is key to protecting your business from data breaches (and CCPA data breach fines). This includes encryption, firewalls, access controls, and more. CCPA doesn’t just care about what data you collect, it cares about how well you’re protecting it.
• Maintain detailed records: Keep track of all data requests and how you handled them. If you’re ever audited, you’ll want to show that you’ve done your homework.
• Minimize unnecessary data: Only collect the data you actually need. The less you store, the less you have to protect (and the lower your risk).

Still not sure if you’re on the right track? Check out this CCPA Compliance Checklist – it’s packed with everything you need to cover your bases and keep data protection and privacy in check.

CCPA Penalties for Non-Compliance

Let’s talk about the reason you’re here in the first place: to find out what happens if something goes wrong. Because while updating your privacy policy might sound tedious, it’s nothing compared to the cost of getting caught in a CCPA violation.

There are two types of penalties:

1. Civil penalties (a.k.a. when the government fines you)

If the California Attorney General decides your company isn’t following the requirements set out by the CCPA, they can hit you with a fine:

• Up to $2,500 per violation for organizations that unintentionally violate the Act.
• Up to $7,500 per violation for organizations that commit intentional violations.

Now imagine that multiplied by hundreds, or even thousands, of consumers. Ouch.

And it doesn’t end there. These fines aren’t once-off – they can stack up quickly. For example, failing to respond to 1,000 consumer data requests correctly could lead to millions in potential fines. And if those violations are considered intentional – maybe you ignored warning letters or neglected to fix known issues – that $7,500 fine per violation becomes a serious financial nightmare.

The California Privacy Protection Agency (CPPA), the newly established enforcement agency, is now fully operational and equipped to investigate violations, issue fines, and demand changes to non-compliant business practices. So if you’re wondering – yes, enforcement is real, and it’s happening.

2. Private right of action (when consumers sue you)

If there’s a CCPA data breach due to your business’s failure to implement proper security measures, consumers can sue your business for damages. The law allows:

• Between $100 and $750 per consumer per incident, or actual damages – whichever is greater.

Think about what that means in a real-world scenario: if you have a breach that affects 10,000 California residents, and they each claim $500 in damages, that’s $5 million out of pocket. Even worse, class action lawsuits could come into play. It’s not just one angry customer you have to worry about – it could be thousands… all at once.

If you didn’t know about a vulnerability or dragged your feet on CCPA breach notification, you could be in even deeper water. Companies that handle a lot of sensitive data (cough – those in healthcare or fintech, for example) need to treat security and breach response as top priorities.

To sum up, here’s a quick overview of the potential consequences of failing to meet CCPA compliance requirements:

Type of Violation	Who Can Enforce?	Penalty Amount	Details
Unintentional Violation	California Attorney General or CPPA	Up to $2,500 per violation	Applies to failures that occur without malicious intent
Intentional Violation	California Attorney General or CPPA	Up to $7,500 per violation	Includes ignoring warnings or knowingly failing to comply
Data Breach – Private Action	Affected Consumers/Users	$100–$750 per consumer per incident (or actual damages, whichever is greater)	Applies when a CCPA data breach occurs due to insufficient security
Failure to Notify Breach	California Attorney General or CPPA	Included under civil penalties	Businesses must provide timely CCPA breach notification
Ongoing Non-Compliance	California Privacy Protection Agency (CPPA)	Varies – based on number and scope of violations	The CPPA can investigate and demand corrective actions

On top of the fines and penalties, non-compliance with the CCPA can seriously damage your business’s reputation, lead to customer churn, and result in higher compliance costs down the road, so really, it’s just not worth the gamble.

How to Mitigate CCPA Compliance Risks

No one wants to get slapped with CCPA fines – especially when you’re just finding your footing in a competitive business landscape. Fortunately, most risks are totally preventable with the right approach.

Here’s how to keep things running smoothly so you don’t land up in hot water:

• Know your data inside and out: Go beyond just collecting data. Understand what you have, where it’s stored, who has access, and what it’s being used for. A clear, up-to-date data inventory is your first line of defense.
• Build privacy into your workflows: Don’t treat CCPA as a once-a-year audit. Embed privacy and security into your day-to-day operations, product development, and internal reviews. The more proactive you are, the fewer surprises you’ll run into (we promise!).
• Review third-party risk: Your compliance doesn’t stop with you. Assess your vendors, partners, and service providers to make sure they’re also aligned with CCPA standards. One weak link can become your liability.
• Test your breach response plan: It’s not enough to have an incident response plan, you need to know it works. Run simulations so your team knows exactly what to do if a CCPA data breach happens. Bonus: it’ll help you nail those CCPA breach notification timelines.
• Stay ahead of regulation updates: CCPA isn’t a static law. With the introduction of the California Privacy Rights Act (CPRA), new rules and thresholds have come into play. Make sure your team stays informed on all regulatory changes – or better yet, leverage compliance automation to stay ahead of the curve.
• Document everything: Whether it’s how you respond to requests or how you manage risk assessments, keep clear records. Documentation is your friend if you’re ever audited or questioned by authorities.

If keeping track of all this feels like a full-time job… that’s because, for many businesses, it is. But don’t worry, there are smarter (and way less stressful) ways to manage it.

Achieving CCPA with Compliance Automation

If your business handles California data, CCPA compliance isn’t optional – and the penalties for non-compliance are no joke. Fortunately, it doesn’t have to be complicated. That’s where automation comes in. Scytale streamlines the entire CCPA compliance journey, making it faster, easier, and more efficient – not just for CCPA, but for other key frameworks like ISO 27001, SOC 2, and GDPR too.

With Scytale’s all-in-one compliance hub, you can automate evidence collection, user access reviews, multi-framework cross-mapping, and more. It also offers simplified risk assessments, built-in awareness training, seamless collaboration, customizable policy templates, and a privacy management system to monitor compliance progress and keep everything on track. Plus, you’ll have Scytale’s GRC experts by your side every step of the way.

By understanding your obligations, tightening your data practices, and embracing tools that make the process easier, your business can avoid CCPA violations and build trust. And showing your users you care about privacy? That’s just smart business.

FAQs

What does it mean to be CCPA compliant?

Being CCPA compliant means your business is following the rules set out by the California Consumer Privacy Act, including telling consumers what data you collect, giving them rights to access or delete it, and protecting it from breaches.

What are the most common CCPA violations?

The most common violations include not updating your privacy policy, failing to respond to consumer data requests, not having a “Do Not Sell My Info” link when required, and not properly securing consumer data.

What steps can businesses take to avoid CCPA penalties?

To avoid penalties, businesses should audit their data, set up processes to handle data requests, secure all personal information, train their staff, and consider using a compliance automation platform like Scytale to automate key compliance tasks and stay on track with CCPA compliance requirements.