Regardless of the CCP’s future, fiduciary duty remains a constant in real estate practice, demanding an unwavering commitment from licensees, Summer Goralik writes.
Category: Compliance
How can I really be sure sellers will pay the buyer’s agent (me)?
The new commission rules are confusing. Compliance expert Summer Goralik unpacks whether it’s possible to confirm if a seller is willing to compensate buyer’s agents.
Is it possible to market a seller wanting to offer a concession?
With all the commission confusion as we near the Aug. 17 implementation deadline, compliance expert Summer Goralik is here to answer your burning questions, starting with concessions.
The CPRA Compliance Checklist Every Business Should Follow in 2023
By Adil Advani
If you run a business, it’s essential to be aware of and comply with all relevant regulations. One such regulation is the California Privacy Rights Act (
CPRA) which was approved by California voters in November 2020 and went into effect on January 1, 2023. The CPRA builds on the California Consumer Privacy Act (CCPA), which became law in 2018, and provides additional rights for California consumers regarding the collection of their personal information and how it is collected, used, and shared by businesses.
Understanding the CPRA
The CPRA applies to companies that do business in California and meet certain criteria, including having gross annual revenues over $25 million, collecting personal information from more than 100,000 consumers or households, or deriving 50% or more of their annual revenues from selling consumers’ personal information.
Personal information is defined as any information that relates to, or could reasonably be linked to, a particular consumer or household. This includes names, addresses, email addresses, IP addresses, and more sensitive information like biometric data and personal financial information.
Some of the fundamental rights that the CPRA gives to California consumers include:
- The right to know what personal information a business has collected about them
- The right to request that a business delete the consumer’s personal information
- The right to opt-out of the sale of their personal information
- The right to opt-out of automated conclusions, such as profiling for targeted behavioral advertising
- The right to know how automated decision technologies work and their likely outcomes
- The right to correction in the event the personal information is incorrect
- The right to limit the use of a consumer’s sensitive personal information
- The right to data portability where an organization share data with other entities
- The right to notify minors if the business intends to sell or share their personal data
Ensuring your business is compliant
1. Make a plan
It’s essential to have a plan in place for how your business will handle requests from California consumers, including who will be responsible for responding to them and how long it will take to respond. The CPRA mandates that these requests must be addressed within ten days and processed within 45 days.
2. Review and update your privacy policies and notices
The CPRA requires businesses to provide clear and conspicuous notice to consumers about their rights under the law, as well as information about the personal information the business collects and how it is used. This means taking a close look at the personal information that your business collects, how it is collected, and how it is used and shared. You should also review any contracts or agreements with third parties involving the collection, use, or sharing of personal information. Ensure your privacy policies and notices are up-to-date and compliant with the requirements of the CPRA.
3. Designate a data controller
Designate a contact person or team to handle CPRA-related requests from consumers. This could be a privacy officer or a
customer service team with the necessary training and resources to handle these requests.
4. Train staff
Train your employees on the CPRA and its requirements. This will help ensure that everyone in your organization is aware of the new law and knows how to handle CPRA-related requests from consumers.
5. Introduce privacy and security measures
Implement procedures for verifying the identity of consumers who make CPRA-related requests. This is important to protect the privacy of consumers and prevent fraud. Additionally, keep thorough records of all CPRA-related requests and how they were handled. This will help you demonstrate compliance with the law and provide evidence in the event of a dispute or investigation.
Consequences for non-compliance
Keep in mind that there can be financial consequences if a business is not complying with CPRA’s requirements. The severity of the offenses determines the penalties for violations, where each infraction carries a $2,000 fine, negligence-based errors are subject to a $2,500 fine per offense, and intentional disregard of the law carries a $7,500 fine per offense.
Legal Requirements for Starting a Small Business: 10 Things New Entrepreneurs Should Know
If you’re a new entrepreneur, an important task is ensuring that your business is compliant with all local, state and federal regulations.
Some legal matters require immediate consideration, and you will want to address those issues as soon as possible. To help,
Young Entrepreneur Council members share 10 essential tasks to handle right away when starting a business.
When first starting your business, it’s important to get all the legal matters in order as soon as possible. In your experience, what’s one legal consideration new entrepreneurs should be sure to handle right away and why?
1. Set up a company mailing address
It’s important to set up a company mailing address, especially if you are a remote business and don’t have a physical location. This address will be used in all of your email correspondence, legal documents, and more. You can set this up through a registered agent or through a company that handles mailboxes for businesses. Be aware you can’t use a P.O. Box to receive certain government forms and you may need a physical mailing address. —Nathalie Lussier, AccessAlly
2. Check for preexisting trademarks
One legal matter that needs to be addressed when starting a business is trademark issues. When creating your brand or developing a product, always check to see if someone has trademarked the name. If they have, you’ll need to go back to the drawing board. The last thing you want to do is infringe on a registered trademark and end up in legal trouble before you get your business off the ground. —John Brackett, Smash Balloon LLC
3. Find a good, experienced lawyer
Get a good lawyer who understands corporate law, finance, and mergers and acquisitions. It’s impossible to know what future legal matters you will face at incorporation, but good lawyers will know what’s ahead, even if you don’t. A good law firm can modify existing documents and help with negotiations. Having a good lawyer who understands how to structure legal matters is important. —Sean Adler, GZI
4. Establish the business as an LLC or corporation
When first starting out, one of the most important legal considerations to handle is establishing the business as a limited liability company (LLC) or corporation. That’s because every other step of the business-opening process will demand the legal name of the business. It’s what makes it possible to get a federal tax ID, which is also required for key financial elements like bank accounts and insurance policies. —
Richard Fong, Trustable Tech
5. Put financial agreements in writing
Always put financial agreements in writing. Money can easily break friendships and kinships, and you don’t want any misunderstandings to arise in the future. The agreement should include the nature of the return on investment. This is a serious expression of your commitment to the business and your intent to make money from it. —Bryce Welker, Crush The GRE Test
6. Publicize your company legally if necessary
One of the first things you should do before starting your business is determine if you need to publicize your company legally. Some cities and states require business owners to publicly announce that they created a company before they’re recognized. Failure to follow this step could result in hefty fines, confusion, and legal issues. —John Turner, SeedProd LLC
7. Understand your estimated tax payments
Talk to a CPA about your estimated tax payments, especially if you offer professional services. It would be unfortunate if you lost your license because of the back taxes you owe. In the first few years of business, you don’t want to underestimate your dues to the IRS or find yourself in a financial bind. Estimated tax payments per quarter are ideal. —Givelle Lamano, Lamano Law Office
8. Ensure you’re following the right payment rules
Make sure that you’re compliant with payment issues. There are many regulations that govern how you can accept payments from your clients. This is especially important if you work with clients who live in other countries, as you’ll need to consider currency exchange rates and taxes. By working with a legal professional, you can ensure that your business is following all the right rules. —Syed Balkhi, WPBeginner
9. Register your business name
Choosing the name of your company is one of the more difficult things to do when getting started. In most cases, the name you settle on will have already been taken, so this may take a few tries. But, when you’ve finally made up your mind and come up with a name that’s not taken by someone else, it’s best that you get it registered as soon as possible. —Stephanie Wells, Formidable Forms
10. Obtain any necessary licenses
In many countries, you need a license to start a business. So if you’re residing in such a country, obtaining that license is one of the first things you should do. This will prevent you from landing in any legal trouble. —Thomas Griffin, OptinMonster