CCPA vs GDPR: The Key Differences Between US and EU Privacy Laws

CCPA vs GDPR is one of the most important privacy comparisons for companies that serve both US and European audiences, because the two laws take very different approaches to data rights and compliance.

CCPA vs GDPR: Different Regulatory Philosophies

The GDPR is prescriptive: it sets strict rules about what organizations can and cannot do with personal data, requiring a legal basis before any processing begins. The CCPA is consumer-empowering: it gives individuals rights to control their data but allows businesses considerable freedom unless consumers actively exercise those rights.

Scope and Applicability

The GDPR applies to any organization processing data of EU/EEA residents, regardless of size. The CCPA applies only to for-profit businesses meeting specific revenue or data volume thresholds. The GDPR covers all personal data processing; the CCPA exempts employee data and certain other categories.

Consent and Legal Bases

Under the GDPR, organizations need a specific legal basis for processing personal data, with consent being just one of six options. The CCPA generally allows data processing by default but gives consumers the right to opt out of data sales and sharing.

Sensitive Data

Both regulations recognize sensitive data categories, but the GDPR imposes strict processing restrictions requiring explicit consent, while the CCPA allows consumers to limit the use of sensitive data -- a less restrictive approach.

Enforcement and Penalties

GDPR fines can reach 4% of global annual turnover or EUR 20 million. CCPA enforcement is conducted by the Attorney General and the California Privacy Protection Agency, with additional penalties for unresolved violations after a 30-day cure period. The CCPA also provides a private right of action for data breaches.

Data Transfer Rules

The GDPR has elaborate rules for international data transfers that have led to enforcement against US-based services. The CCPA does not restrict cross-border data transfers in the same way.