Definition Of Business Under Ccpa

Who is covered by the definition of a business.

Definition of business under ccpa. Businesses that process information on behalf of other businesses. A lot of routine business activities could fall under this definition. In order to qualify as a business directly an entity must collect information subject to ccpa directly or through an entity acting on its behalf. Collection under ccpa is a wide concept defined.

Want to understand if your company is a business or a service provider under the ccpa. Under the ccpa a business is a for profit company operating in california for which one or more of the following are true. However there s an important exception. What is a ccpa business purpose or commercial purpose.

It also applies to certain affiliated organizations with a covered business. Annual gross revenues over 25m. Under the ccpa selling personal information includes sharing it for any valuable consideration benefit. Two of the main players in the california consumer privacy act ccpa are the business the service provider the ccpa applies very different definitions to these two types of companies and they each have very different roles and responsibilities.

A business that shares common branding or control with a 1798 140 c 1 business is also considered to be a business under the ccpa. Many businesses are worried about the ccpa s broad definition of selling personal information. For businesses to comply they will need to determine the business purpose or commercial purpose which they need to disclose. As a result as the ccpa is currently written it applies only to the information collected about california based employees.

The ccpa only imparts obligations directly upon a business a term that is defined as a for profit legal entity that collects personal information about california residents determines the purpose and means of the processing of that information does business in california and hits one of the three threshold volume triggers set forth under the act i e 25 million gross revenue data about 50 000 californians or generates 50 of its revenue from selling personal. Annually buys receives sells or shares personal information of over 50 000 california consumers households or devices. The ccpa gives no additional guidance on this language. The california consumer protection act ccpa requires covered businesses to disclose the business or commercial purpose for collecting or selling personal information.

The california consumer privacy act ccpa refers to covered organizations as a business.