CCPA Data Retention: How Long Can You Keep Customer Data?

The California Consumer Privacy Act (CCPA) reshaped how businesses handle personal information, introducing robust requirements to protect the privacy of California residents. A cornerstone of these regulations is data retention, which governs how long covered businesses can store customer information. Complying with CCPA data retention rules is not only about avoiding fines but also about fostering consumer trust and mitigating risks such as data breaches or misuse. In this detailed guide, we explore the principles of CCPA data retention, industry-specific considerations, and actionable strategies for compliance.

Data retention refers to storing a consumer’s personal information for a defined period, ensuring that it serves a legitimate purpose. It’s all about a delicate balance—businesses must retain certain data to fulfil legal, operational, or business needs while avoiding the risks of over-retention, such as:

• Increased liability: Storing unnecessary data exposes organisations to greater risks in the event of a breach. For instance, the widely publicised “BlueLeaks” incident highlighted the dangers of holding onto outdated information​.
• Compliance challenges: Non-compliance with laws like the CCPA, GDPR, or the updated California Privacy Rights Act (CPRA) can result in substantial CCPA fines.
• Eroded consumer trust: Mishandling or over-retaining data damages reputation and can drive customers away.

The CCPA mandates that businesses implement data retention schedules and disclose these practices in their privacy policies. Adopting a well-structured approach to data retention ensures compliance requirements are met, operational efficiency is achieved, and consumer confidence is maintained.

The CCPA and its successor, the CPRA, outline three key principles to guide businesses in developing compliant retention practices:

Data minimisation

Collect and retain only the data necessary for a specific, disclosed purpose. For example, retaining cookies that track user behaviour indefinitely is no longer acceptable. Implement policies to minimise the amount of data collection and storage.

Purpose limitation

Data must only be used for the purpose originally stated when it was collected. For instance, email addresses collected during a transaction cannot be repurposed for marketing campaigns without obtaining additional consent​.

Storage limitation

Businesses are required to define and enforce retention periods. For example, geolocation data collected to provide location-based services must be deleted once that purpose is fulfilled​.

Establishing the right data retention period is crucial for compliance and operational efficiency. Here are key considerations:

Legal and regulatory requirements

Compliance with legal requirements, both local and global, is a critical factor in determining data retention timeframe. These laws often mandate specific periods for retaining different types of data to ensure transparency, accountability, and preparation for audits or legal inquiries. Key examples include healthcare industry where patient records may need to be retained for at least seven years after their last date of service.

Business needs

Operational requirements, such as customer support or trend analysis, might necessitate retaining certain data longer. However, businesses should regularly evaluate whether these needs justify the retention of sensitive personal information.

Consumer expectations

Transparency about data retention practices builds trust. Businesses should clearly disclose their retention periods and disposal policies in privacy notices. Consumers are more likely to engage with organisations that prioritise their privacy​​.

Different industries face unique challenges in aligning data retention with CCPA compliance:

• Healthcare: Retention of medical records is guided by HIPAA and state-specific regulations. While long retention periods may be mandated, anonymisation of data after use is advisable.
• E-commerce: Transaction histories may be retained for warranty and tax purposes. However, sensitive data, such as payment information, must be securely disposed of once it is no longer required.
• Finance: Regulatory frameworks often mandate the retention of financial records for extended periods. These must be balanced with secure data disposal practices to prevent over-retention​.

By tailoring retention policies to industry standards, businesses can stay compliant while managing data effectively.

To comply with CCPA data retention requirements, businesses should adopt the following strategies:

1. Conduct a data inventory

Map out all personal information collected, stored, and processed by your organisation. Identify data categories, business purposes, and applicable retention periods.

2. Classify data types

Analyse the category of personal information based on its sensitivity and regulatory requirements. For instance, social security numbers may require stricter retention protocols than general contact details.

3. Define retention periods

Establish clear schedules for how long each category of data will be retained to strengthen your business’s data retention program. For example:

• Marketing data: Retain for up to 2 years, subject to user preferences.
• Transaction data: Retain for 7 years to comply with financial regulations.

4. Respond promptly to deletion requests

Respond to valid consumer requests for deletion within 45 days. If additional time is needed, an extension of 45 days can be granted, provided the consumer is informed of the delay.

5. Automate data management

Use tools like CookieYes to automate cookie consent management, monitor cookie expiration dates, and ensure compliance with the CCPA.

6. Implement secure disposal

Develop robust protocols to securely delete data that has reached the end of its retention period. This includes shredding physical documents and permanently erasing digital records.

7. Update policies regularly

Ensure data retention policies remain current with evolving laws, such as the CPRA, and emerging industry standards​​.

8. Train employees

Educate staff on data privacy laws and internal retention policies to ensure compliance across all departments.

9. Conduct audits

Regularly audit your retention practices to identify gaps and make improvements. Audits can also ensure that data is not retained longer than necessary​.

Technology makes managing data retention easier and more efficient, especially when navigating complex regulations like the CCPA and CPRA. With the right tools, businesses can automate processes, reduce human error, and strengthen compliance efforts.

1. Automated data management: Software can take the guesswork out of data retention by automatically deleting information once it reaches the end of its required lifespan. This prevents over-retention and keeps your data policies compliant.
2. Cookie consent management: Tools like CookieYes simplify cookie consent and retention by automating expiration dates and user preferences. This ensures your cookies comply with retention timelines without manual intervention.

3. Data mapping and organisation: Privacy platforms help with CCPA data mapping, i.e. track where your data is stored and what type it is, making it easier to apply the correct retention schedules. They also flag outdated or unnecessary data, so you can securely dispose of it.
4. Secure data disposal: Deleting data isn’t as simple. Good technology ensures it’s done efficiently. From overwriting files to digital shredding, these tools make sure your data doesn’t linger where it’s no longer needed.
5. Compliance tracking and audits: Retention tools can generate reports and logs, proving to regulators that your business is following the rules. Having a clear audit trail makes compliance less stressful and helps you stay ahead of potential issues.

Evolving privacy regulations

The CPRA has introduced stricter requirements, such as mandatory disclosure of retention timelines and criteria. Businesses must stay informed about these changes and adapt their policies accordingly​.

Striking the right balance

Balancing business needs with regulatory requirements is key. Over-retention increases liability, while premature deletion could hinder operations. By leveraging technology and conducting regular reviews, businesses can strike this balance effectively​​.

A robust CCPA-compliant data retention strategy is essential for protecting consumer privacy, ensuring regulatory compliance, and building trust. By implementing principles like data minimisation, purpose limitation, and secure disposal, businesses can manage data responsibly and effectively.