California has long been at the front of privacy law in the U.S., and things are only getting tighter. If your tech company handles user data, you can’t afford to guess your way through it anymore.
The California Privacy Rights Act (CPRA) went into full effect in 2023, building on the earlier California Consumer Privacy Act (CCPA). But this isn’t just a matter of updating a policy and moving on. If you’re a founder or operations lead in a tech startup, this touches everything, from how you collect emails to how you negotiate contracts with vendors.
Here’s what startup teams need to do now to stay ahead.
Map the data your product collects
Start with the basics. What kind of personal data does your product collect?
Make a list of:
- What data you collect
- Where it’s stored
- Who you share it with (vendors, partners, internal teams)
- Why you collect it
This helps you answer one of the key privacy questions: What are you doing with user data, and can you explain it clearly?
This step matters even more if your product uses any third-party SDKs, ad tech tools, or analytics platforms. That data-sharing may trigger specific requirements under California law.
A privacy law attorney California can help map this in plain terms and flag any legal risks early.
Rewrite privacy policies so real users can read them
A 10-page privacy policy full of legal terms isn’t helping anyone. Users need to understand what data you collect and how they can control it.
Under CPRA, users can:
- Ask to see what personal data you’ve collected
- Request corrections
- Ask you to delete their data
- Opt out of selling or sharing their data
This isn’t just a legal issue. It’s also about building user trust. A privacy law attorney in California can help rewrite these policies in clear, human language.
Review vendor contracts for data-sharing terms
Most startups rely on outside tools like CRMs, marketing platforms, cloud services, and payment processors. But if any of those vendors access your users’ data, you’re responsible for how that data gets handled.
That’s where Data Processing Agreements (DPAs) come in. They set rules for how your vendors can use the data and what security measures they need to follow. If your vendor mishandles user data and there’s no DPA in place, your startup could face fines.
An expert commercial contract lawyer California can review your vendor contracts and determine what needs to be added or fixed.
Here’s what to look for:
- Do your contracts mention user data at all?
- Is there clear language about who owns the data?
- What happens if there’s a breach?
- Does the vendor meet California’s security requirements?
Don’t rely on whatever the vendor sends first. Those contracts usually protect them, not you.
Train your team on privacy practices
Privacy compliance isn’t just for legal or ops. Anyone on your team who works with user data should know the basics.
That includes:
- Engineers who build data pipelines
- Marketers who send emails or run ads
- Product managers making feature decisions
They should know things like:
- What counts as personal data
- When to collect consent
- What to do if a user requests data deletion
Your product can be legally sound, but if your team doesn’t follow privacy rules day to day, you’re still exposed.
Build privacy into contracts with clients and partners
If you sell to businesses, especially in finance, health, or education, they will ask about your privacy practices. They may even send you a detailed questionnaire.
Your contracts with those clients might need to include:
- Warranties about how you handle user data
- Commitments to follow CPRA
- Rules about sub-processors (any vendors you use)
- Breach notification timelines
A commercial contract lawyer in California can help add those clauses so you don’t lose deals or take on risks you didn’t spot.
Final thoughts
Privacy laws in California aren’t static. They change fast. And regulators are paying attention, especially to tech companies collecting user data. Working with a privacy law attorney and a commercial contract lawyer makes the process faster and way less painful. They can help you check the boxes now and avoid significant problems later.
Startups that get privacy right early tend to move faster later. The waiters usually end up rewriting contracts, fixing mistakes, and trying to win back user trust. Don’t be that team.
