How the California Delete Act Changes Data Retention and Deletion Policy Requirements

Table Of Contents:

• What Is the California Delete Act?
• Who Does the Delete Act Affect?
• What the Law Means for Data Retention Policies
• What the Law Means for Data Deletion Practices
• Physical Records Still Count
• What Businesses Should Do Next
• How Corodata Helps Support Compliance
  • Retention Guidance and Secure Storage
  • NAID AAA-Certified Shredding
  • Faster Retrieval and Deletion
• Deletion Act Compliance With Smart Records Management

California businesses already operate under some of the strictest privacy laws in the country. The introduction of the California Consumer Privacy Act (CCPA) in 2018, followed by the California Privacy Rights Act (CPRA), reshaped how organizations collect, use, and manage personal information. Now, another regulation makes data deletion even stricter.

The California Delete Act extends beyond traditional data broker obligations. It affects any business that collects, uses, shares, or sells consumers’ personal information. This means healthcare providers, financial institutions, law firms, government agencies, and professional service firms. The Delete Act now requires data retention and deletion practices to become more deliberate and defensible.

This guide will walk you through all you need to know about the California Delete Act and how to stay compliant. 

What Is the California Delete Act?

The California Delete Act, officially known as Senate Bill 362, expands consumer control over personal data. Even though previous laws gave consumers the right to ask companies to delete their data, the process was tedious. You had to contact every company individually.

The Delete Act changes that, allowing Californians to submit a single deletion request through a centralized system. This system is known as DROP, or Delete Request and Opt-Out Platform. Using this system, you can submit one request to delete all your personal information from all registered data brokers.

This law also increases the frequency of audits to every three years starting in 2028. The California Privacy Protection Agency (CalPrivacy) audits data brokers and imposes administrative penalties on businesses that don’t comply with privacy laws. Under this new legislation, businesses must maintain documentation supporting their deletion actions.

The Delete Act isn’t just another privacy law. It shows that the state of California expects businesses to take data deletion seriously. If you collect personal information, be ready to delete it immediately upon request. You should also have proof that you deleted the data.

Who Does the Delete Act Affect?

The California Delete Act primarily targets data brokers. These are companies that collect, use, share, and sell consumer information. Marketing analytics companies and search engine sites are businesses in this category. If you buy and sell leads or aggregate consumer profiles to sell to advertisers, you are a data broker.

This law doesn’t only target data brokers. Businesses that collect large volumes of consumer data must comply with this privacy law, even though they aren’t technically data brokers. 

• Healthcare providers maintain patient records while legal firms store client information. 
• Financial services companies, on the other hand, track customer transactions. 
• Government agencies and professional service firms handle personal information every day.

As a business owner or C-suite executive, the question shouldn’t be whether you are a data broker. Ask yourself whether you can respond effectively to deletion requests while proving the Delete Act compliance.

This consumer privacy law also affects businesses storing personal records longer than necessary. CalPrivacy may question why personal data remains accessible long after its business purpose ends. Even if you aren’t a broker, you must prove your retention and deletion practices are defensible.

What the Law Means for Data Retention Policies

The Delete Act changes how businesses handle data retention policies in California. You can no longer keep data longer than necessary. Keeping data “just-in-case” creates unnecessary risks and liability.

Businesses must justify how long they keep personal data. This means you should only keep what you need and use it for its intended purpose. Once done, you should delete the consumer data.

The law also requires businesses to document record retention schedules. Before, this was a best practice. Now, regulators don’t want vague timelines. You need to show how long you held onto consumer information, including client contracts and patient health information.

You should have a specific legal or business reason for keeping a piece of personal information. If not, the state expects you to delete it. This creates stronger safeguards for sensitive records that include customer information, such as Social Security numbers.

When retention periods end, find a secure information management provider with secure storage and certified destruction.

What the Law Means for Data Deletion Practices

The Delete Act requires businesses to respond faster to deletion requests. When such a request comes in through DROP or a direct inquiry, you must locate the specific consumer’s data across your entire organization. Places you could find such data include:

• Paper files in your off-site storage
• Active digital databases and CRM systems
• Email archives
• Chat logs
• Backups from tapes
• Hard drives from decommissioned laptops

If you delete data in your active digital database but leave it on backup tapes or physical files, you haven’t complied with the California Delete Act. The state requires proof of secure destruction, backed by clear records destruction policies. This means that you must demonstrate that the data is completely gone and can’t be reconstructed.

Remember, keeping old records increases liability. Every unnecessary file creates a potential breach risk, whether physical or digital.

Physical Records Still Count

Digital transformation hasn’t eliminated physical records. Businesses still use paper files and hard drives to store information.

Physical records often pose risks for compliance with the California Delete Act. Paper files containing names, addresses, Social Security numbers, medical history, or financial history are covered under consumer privacy laws in California. If a consumer requests deletion, you must securely destroy those physical files.

This also applies to old backup tapes and hard drives that contain consumer information. You can’t simply throw them in the trash. You also can’t format drives and hope everything is gone. Using forensic tools, such data remains recoverable. You need secure hard drive shredding to make sure the data can never be accessed.

What Businesses Should Do Next

Don’t wait for a letter from CalPrivacy to start organizing your records. Start with these practical steps.

1. Audit where personal data lives. You can’t delete what you can’t find. First, conduct a thorough audit to see exactly where personal data enters your business and where it lives. This step may reveal blind spots, such as old hard drives in storage or boxes in off-site warehouses.
2. Update retention schedules. Review your current retention policy and ask yourself whether it is in line with data deletion requirements in California. If you don’t have a retention schedule, create one now.
3. Define deletion timelines. Retention schedules typically specify “how long,” while deletion timelines specify “when.” Set clear internal deadlines for responding to deletion requests. The Delete Act requires data brokers to comply with deletion requests within 45 days. Your team needs an efficient deletion workflow that assigns roles to employees to meet these dates.
4. Document everything. Compliance with privacy laws is about evidence. Always keep a log of every deletion request and destruction. Also, partner with an NAID AAA-certified destruction provider for your physical records. This creates a verifiable audit trail that proves you followed the law.
5. Train employees. Staff throughout your business should understand privacy laws and the importance of data privacy. Those handling records should understand retention schedules and what to do when deletion requests come in. Training should also involve managers who oversee IT or compliance employees who execute deletion requests.
6. Work with certified destruction and storage partners. Compliance isn’t something most businesses can handle on their own. Partner with a certified provider like Corodata, specializing in secure storage and destruction. Working with storage experts reduces risk and simplifies the Delete Act compliance.

Avoid last-minute rushes that could lead to administrative penalties and hurt your reputation. Be proactive and follow the above steps.

How Corodata Helps Support Compliance

At Corodata, we understand that the California Delete Act is a complicated piece of legislation. However, it becomes manageable if you have the right systems that guide you on when and how to handle your deletion requests.

Retention Guidance and Secure Storage

Retention guidance can feel overwhelming, especially when different laws overlap. We work with businesses to develop retention schedules that comply with industry regulations and operational requirements. Then, our secure storage facilities store your records safely until their retention period ends, reducing the risk of accidental loss or unauthorized access.

NAID AAA-Certified Shredding

When records reach the end of their lifecycle, you must handle destruction properly. Corodata provides NAID AAA-certified shredding services for mobile documents, hard drives, and electronic media. Once we are done shredding, we offer you a Certificate of Destruction for your internal records and regulatory audits.

Faster Retrieval and Deletion

Deletion requests under the California Delete Act require you to act fast. Corodata helps you organize your records using clear indexing and inventory systems. This makes it easier to locate and retrieve records for deletion, reducing the risk of noncompliance.

Deletion Act Compliance With Smart Records Management

The California Delete Act shows how serious data privacy has become. Consumers are becoming more aware of their rights and are searching for companies they can trust.

Whether you are a data broker or a professional firm, the time to clean up your data is now. Start with an audit, update retention schedules, define deletion timelines, and then document destruction processes. At Corodata, we help make that possible. We offer guidance on retention and deletion, storage, shredding, and vaulting services.