GDPR vs. CCPA: What Data Buyers Need to Know in 2025

In today’s data-driven economy, businesses increasingly rely on data to drive decision-making, enhance customer experiences, and innovate. With this increased reliance on personal data, the need for strong data privacy regulations has never been more important. Two of the most influential data privacy laws today are the General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in the United States.

Both regulations were designed with the consumer in mind, ensuring that individuals have greater control over their personal data and how it is used. They provide important legal frameworks for businesses and data buyers to follow, ensuring that personal information is collected, stored, and shared responsibly and ethically.

As of 2025, understanding the intricacies of these regulations is critical for any business that buys data, especially given that failure to comply with these laws can lead to severe financial penalties and reputational damage. This article provides an in-depth comparison between the GDPR and CCPA to help data buyers stay compliant and avoid costly mistakes when purchasing and using personal data.

At Data Allegiance, we specialize in ensuring that all data transactions comply with the highest standards of data protection and privacy regulations. Our comprehensive certification process helps businesses confidently source and license data, knowing that it adheres to GDPR and CCPA requirements.

1. Overview of GDPR and CCPA

What is GDPR?

The General Data Protection Regulation (GDPR), enacted by the European Union (EU) in 2018, has had a profound impact on the global data privacy landscape. The regulation aims to protect the personal data of individuals within the EU and the European Economic Area (EEA), as well as those who do business with EU residents.

GDPR applies to any organization, regardless of its location, that processes personal data of EU citizens or residents. The regulation imposes stringent requirements on businesses to ensure that personal data is handled securely, transparently, and with respect for individuals' privacy rights. It also introduces hefty fines for non-compliance, which can amount to up to €20 million or 4% of global revenue, whichever is higher.

At Data Allegiance, we guide data buyers through the complexities of GDPR compliance, offering certification to ensure that businesses purchasing data adhere to these strict privacy standards.

What is CCPA?

The California Consumer Privacy Act (CCPA), which came into effect on January 1, 2020, was designed to grant consumers in California greater control over their personal data. CCPA applies to businesses that collect, use, and sell personal data of California residents. The act gives consumers specific rights, including the right to access and delete personal data, as well as the right to opt-out of having their personal information sold to third parties.

Unlike the GDPR, which is a comprehensive law that applies to a wide range of data processing activities, the CCPA primarily focuses on the sale of personal data. Data buyers must be cautious about the data they purchase, especially if the vendor is selling data that includes California residents’ personal information.

At Data Allegiance, we ensure that businesses purchasing data from California-based vendors are well-informed and compliant with CCPA requirements. By obtaining certification through our system, businesses can rest assured that the data they source is compliant with both GDPR and CCPA.

2. Key Similarities Between GDPR and CCPA

Despite being enacted in different regions (Europe vs. California), the GDPR and CCPA share several important similarities. Both pieces of legislation aim to protect consumers' privacy, enhance transparency, and give individuals greater control over their personal data. Below are the key similarities that data buyers should be aware of:

1. Consumer Rights

Both GDPR and CCPA provide individuals with important rights over their personal data. These rights ensure that consumers are empowered to take control of their data and understand how it is being used. Key rights shared by both regulations include:

●     Right to Access: Both regulations grant consumers the right to access the personal data that businesses hold about them. Consumers can request information about the type of data collected, its purpose, and how it is being processed.

●     Right to Deletion: GDPR and CCPA both give individuals the right to request the deletion of their personal data, provided certain conditions are met.

●     Right to Opt-Out: Both laws grant consumers the ability to opt-out of having their data sold to third parties. Under CCPA, businesses must provide an easy opt-out mechanism, while GDPR requires that individuals be able to withdraw their consent for data processing at any time.

As a Data Allegiance certified partner, data buyers can ensure that they are not only protecting consumer rights but also adhering to the legal obligations set forth in both regulations.

2. Transparency Requirements

Both the GDPR and CCPA place a strong emphasis on transparency in how personal data is collected, used, and shared. Businesses are required to provide clear and concise privacy notices to consumers, informing them about:

●     The types of personal data collected.

●     How the data will be used.

●     With whom the data will be shared.

For data buyers, these transparency requirements are crucial. By working with Data Allegiance certified vendors, businesses can ensure that they are purchasing data that adheres to the transparency standards set forth by both GDPR and CCPA, avoiding the risk of acquiring data that could put them at legal risk.

3. Data Breach Notification

Both GDPR and CCPA mandate that businesses notify consumers in the event of a data breach that compromises their personal information. For GDPR, the breach must be reported to the relevant supervisory authority within 72 hours. Under CCPA, businesses must inform affected individuals within a reasonable time frame.

As a data buyer, it is essential to ensure that the vendors you purchase from have effective breach notification protocols in place. Data Allegiance helps businesses verify that their vendors meet these standards by providing ongoing support and audits for compliance.

4. Enforcement and Penalties

Both GDPR and CCPA carry the risk of significant financial penalties for businesses that fail to comply. GDPR fines can be as high as €20 million or 4% of global annual revenue, whichever is greater. CCPA penalties can reach up to $7,500 per violation, with businesses being given a 30-day window to fix non-compliance issues before penalties are applied.

At Data Allegiance, we help businesses mitigate the risks of non-compliance by ensuring that they purchase only from certified, compliant vendors.

3. Key Differences Between GDPR and CCPA

While the GDPR and CCPA share several similarities, they differ in several significant ways. Below are the primary differences between the two laws that data buyers should be aware of:

1. Geographical Scope

●     GDPR: The GDPR has an international scope, meaning it applies not only to businesses within the EU but also to any organization that processes the personal data of EU residents. This global reach means that a business located outside the EU may still be subject to GDPR if they handle data belonging to EU citizens or residents.

●     CCPA: The CCPA is focused solely on businesses that collect, use, and sell the personal data of California residents. While CCPA’s scope is narrower than GDPR’s, businesses that operate in California or sell to California residents must ensure compliance with this law.

Data buyers must understand the geographical limitations of both laws to avoid purchasing non-compliant data. Data Allegiance can assist with certification and offer a network of compliant vendors across various jurisdictions.

2. Definition of Personal Data

●     GDPR: Under GDPR, personal data is defined broadly. It includes any information that can identify an individual directly or indirectly. This includes basic identifiers such as names, email addresses, and phone numbers, as well as more sensitive data like location data, biometric data, and even IP addresses.

●     CCPA: The CCPA defines personal information similarly to GDPR but is more focused on data that can be sold to third parties. Personal information under the CCPA includes identifiers, commercial information, internet activity, and geolocation data, among others. However, it does not cover as broad a range of data types as the GDPR does.

3. Consumer Consent

●     GDPR: The GDPR requires businesses to obtain explicit consent from individuals before collecting and processing their personal data. Consent must be freely given, specific, informed, and unambiguous. Consumers must also be able to withdraw consent at any time.

●     CCPA: The CCPA does not require explicit consent to collect and process personal data. Instead, it focuses on providing consumers with the right to opt-out of the sale of their data. Data buyers must provide a clear mechanism for California residents to opt out of having their data sold to third parties.

Understanding these differences helps businesses like those certified through Data Allegiance streamline their data acquisition process and reduce the risk of non-compliance.

4. Enforcement and Penalties

●     GDPR: The GDPR has robust enforcement mechanisms in place, with penalties reaching up to €20 million or 4% of global annual revenue, whichever is higher. Regulatory bodies across the EU have the authority to enforce GDPR, and penalties are typically applied when businesses fail to meet compliance requirements.

●     CCPA: While the penalties for non-compliance with the CCPA are lower than those under GDPR, they can still be significant. The CCPA allows for fines of up to $7,500 per violation, with consumers being able to bring private lawsuits in case of non-compliance.

Businesses that work with Data Allegiance can be assured that their data sourcing and usage are fully compliant with both GDPR and CCPA, reducing the risks of hefty fines or lawsuits.

4. What Data Buyers Need to Know in 2025

Data buyers must stay ahead of the regulatory curve by understanding both GDPR and CCPA in 2025. As businesses rely on data-driven strategies to gain competitive advantages, it is essential to ensure that the data purchased complies with both regulations. Here are some key considerations for data buyers to remain compliant:

1. Verify Vendor Compliance

Before purchasing any data, verify that the vendor is fully compliant with both GDPR and CCPA. Request the vendor’s documentation and evidence of compliance, including data processing agreements (DPAs), certifications, and any audit reports. A thorough assessment will help you ensure that the data you purchase is being handled in accordance with legal requirements.

Data Allegiance provides thorough vendor certification services, ensuring that all data vendors meet the rigorous standards required by both GDPR and CCPA.

2. Understand Data Usage and Restrictions

Both GDPR and CCPA impose restrictions on how personal data can be used. As a data buyer, you must understand how the data can be processed and ensure that the vendor has obtained the necessary consents. Verify whether the data is restricted to specific uses, such as for marketing or analytics, and be aware of whether the data can be resold or shared.

3. Monitor Data Breaches

As a data buyer, you must be proactive in monitoring for data breaches involving personal information. Both GDPR and CCPA require businesses to notify consumers of breaches in a timely manner. Data buyers should ensure that vendors have robust data breach detection and notification mechanisms in place to minimize the impact of any potential data security incidents.

4. Implement Robust Data Protection Policies

It is not enough to simply purchase compliant data; data buyers must also take responsibility for protecting the data once it is acquired. Businesses should implement comprehensive data protection policies that include secure storage, data access controls, and regular audits to ensure data privacy and security throughout the data lifecycle.

Data Allegiance helps businesses by ensuring that their data protection measures are compliant with international standards.

5. Prepare for Data Deletion Requests

Both GDPR and CCPA grant consumers the right to request the deletion of their personal data. As a data buyer, you need to be prepared for such requests. This includes establishing protocols for locating, deleting, and securely removing data from your systems when necessary. Ensure that you can comply with data deletion requests quickly and without exposing the company to legal risks.

5. Conclusion

As we move further into 2025, businesses must navigate the complexities of data privacy and stay compliant with laws like GDPR and CCPA. Data buyers play a crucial role in ensuring that the data they purchase is collected and processed ethically and legally. By understanding the key similarities and differences between GDPR and CCPA, and implementing robust compliance measures, businesses can mitigate the risks associated with data buying and avoid costly penalties.

In an era where data is more valuable than ever, it is essential for data buyers to prioritize compliance as they build their data-driven strategies. By working with Data Allegiance, businesses can ensure that their data is certified, secure, and compliant, allowing them to make informed decisions and maintain consumer trust.