Understanding the Oregon Consumer Privacy Act (OCPA) for E-commerce Businesses

As an e-commerce business owner, it’s crucial to understand the implications of the Oregon Consumer Privacy Act (OCPA), which was signed into law on July 18, 2023. The OCPA is a comprehensive consumer data privacy law that will affect businesses operating in Oregon, including e-commerce platforms. Most importantly, here’s what you need to know:

Effective Date: The OCPA will come into effect on July 1, 2024. However, if you’re running a non-profit, the law will apply to you from July 1, 2025.

Who Does the OCPA Apply To?:

• If your e-commerce platform conducts business in Oregon or provides products or services to Oregon residents, and you control or process the personal data of 100,000 or more Oregon residents, or control
• Process the personal data of 25,000 or more consumers while deriving 25% or more of your annual gross revenue from selling personal data, you will need to comply with the OCPA.

Key Provisions: The OCPA has several unique features that distinguish it from other state privacy laws:

• Expanded Consumer Rights: Your customers will have the right to request the specific third parties to which you have disclosed their personal data. You can respond by providing the names of the specific third parties to which you have disclosed the customer’s personal data or the names of third parties to which you have disclosed any personal data.
• Sale of Personal Data: The OCPA defines “sale” of personal data as the exchange of personal data with a third party for monetary or other valuable consideration. However, this broad definition may allow customers to opt out of third-party marketing and other disclosures of personal information that involve “valuable” non-monetary consideration.
• Enforcement: The Oregon Department of Justice will enforce the OCPA’s provisions, with civil penalties of “not more than $7,500 per violation.”
• No Private Right of Action: Customers cannot sue you for a violation of the Oregon Consumer Privacy Act (OCPA). Only the Oregon Department of Justice can enforce the law.
• Cure Period: If you violate the OCPA, you will have a 30-day right to correct the violation. However, this cure period will end on January 1, 2026.
• Privacy Notices: You will need to update your privacy notice to specify the “express purposes for which you are collecting and processing personal data.”
• Data Protection Assessments: You will need to conduct and document a data protection assessment for each of your processing activities that present a “heightened risk of harm to a consumer.”

As an e-commerce business, it’s crucial to understand these provisions and ensure your business practices align with the OCPA. If you need further clarification or assistance, consider consulting with a legal professional experienced in data privacy laws.

Also check out: A Comprehensive Guide to Data Privacy Laws for E-commerce