Our Guide for Privacy Compliance, New Data Laws Require New Data Rules for Your Business in 2026

Data laws in this country continue to evolve and play catchup to create more protections for consumers and individuals who conduct business online, where once the rules were basically “wild wild west” style and it was every man for his or herself - now it’s expect that businesses will have protections in place to prevent the breach of PII (Personal Identifying Information) data and actual penalties if this is not being done.

For example, the California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA) gave control back to consumers when it comes to having a say in how they’re data is used (and destroyed). These rules apply to all for profit businesses in California and specify thresholds for data handling and provisions for if a data breach occurs. Consumers now have the right to know about what data is being collected, the right to access it if requested, and the right to have it deleted or to “opt-out” of that collection altogether.

Now in 2026 it’s being reported there will be an additional rules around “Automated Decision-Making Technology” or ADMT which will limit how businesses can use software that makes automated decisions in hiring, financial services, healthcare services and more particularly in the wake of AI. We’re also seeing news of more protections being implemented specifically for Children’s privacy and more requirements for protecting data across the board, including mandatory risk assessments. You can find some of the updates the California Privacy Protection Agency will bring into effect January 1^st, 2026 here.

So, what does this all mean for your business? In general, across more verticals we’re seeing that protecting client and consumer data is no longer a semi optional activity. Where once it was mostly reputational damages and direct damages from downtime should a breach occur, now we are also seeing pressure from federal and state agencies that businesses must do more to protect the data they are collecting or face fines and other penalties. So what are five ways you can address these challenges in 2026?

1. Implement Data Minimization & Purpose Limitation (CPRA-mandated)

CPRA explicitly requires that businesses collect, store, and retain only the data necessary for a disclosed business purpose.
To comply:

• Collect only what you actually need to deliver the service.
• Document each data category, its purpose, and retention period.
• Purge data once you no longer need it, CPRA prohibits indefinite retention.

Under CPRA, over-collection and over-retention are themselves violations, independent of a breach.

2. Deploy Technical “Reasonable Security Controls”

California does not prescribe a control list but expects safeguards proportional to risks. For businesses, “reasonable security” typically includes:

• Multi-Factor Authentication (MFA) for all privileged and remote access
• Disk encryption for all company laptops and servers
• Encrypted data in transit (TLS 1.2+ everywhere)
• Endpoint protection (Defender for Business, Defender for Endpoint, etc.)
• Least-privilege access enforced via role-based access and periodic privilege reviews
• Regular patching for OS, browsers, SaaS, and applications
• Audit logging + monitoring

Courts and regulators frequently cite CIS Controls v8 as a practical benchmark for “reasonable”, at Valley Techlogic we are well versed at implementing and maintaining protections that meet the qualifications of CIS. You can even request our book on it here.

3. Provide CCPA/CPRA-Compliant Consumer Rights Workflows

The privacy statutes require you to honor consumer requests to access, delete, correct, and opt-out of sharing/selling. Safeguards include:

• Identity-verification workflows to ensure the requester is truly the data subject
• Secure request intake forms (SSL-protected, restricted access, logged)
• Documented SLAs (45 days for most requests, with one possible extension)
• Internal procedures for deleting or exporting customer data from all systems
• Data mapping so you know where personal data lives when a request comes in

A business can be fined for failing to respond properly, even without a breach.

4. Establish Vendor & Service Provider Security Controls

Under CPRA, vendors who process personal data on your behalf must meet specific contractual and technical requirements.

What’s required:

• Data Processing Agreements (DPAs) with all vendors who handle personal data
• Contract clauses mandating:
  • Use of data only for specific business purposes
  • Security controls and breach notification
  • Prohibition on re-selling or re-sharing data without consent
• Initial and annual vendor risk assessments
• Verification that cloud/SaaS tools meet SOC 2 or comparable standards

If a vendor leaks your customers’ data, you are liable if you failed to implement these controls.

5. Maintain an Incident Response Plan & Breach Notification Procedure

California has strict breach notification rules (Cal. Civ. Code §§1798.82–84).
To comply and reduce liability:

• Maintain a written incident response plan (IRP) with roles, steps, and communication channels
• Train employees annually on how to report suspicious activities or potential breaches
• Log retention & forensics readiness so you can investigate an incident quickly
• Ensure you can meet CA’s requirement to notify affected residents “in the most expedient time possible” without unreasonable delay
• Have sample notification templates ready to reduce response time

CPRA now empowers the California Privacy Protection Agency (CPPA), which increases enforcement risk for slow or poorly handled breaches.

At Valley Techlogic, we make California data-privacy compliance simple for small and midsize organizations. Our team helps you implement the exact technical, administrative, and security safeguards the CCPA and CPRA expect, without the confusion or guesswork. Learn more today with a consultation.

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This article was powered by Valley Techlogic, leading provider of trouble free IT services for businesses in California including Merced, Fresno, Stockton & More. You can find more information at https://www.valleytechlogic.com/ or on Facebook at https://www.facebook.com/valleytechlogic/ . Follow us on X at https://x.com/valleytechlogic and LinkedIn at https://www.linkedin.com/company/valley-techlogic-inc/.