HB Ad Slot
HB Mobile Ad Slot
Analytics companies are service providers under the CCPA, right?
Friday, March 12, 2021

In order to be considered a service provider under the CCPA, a legal entity must process personal information “on behalf of a business”[1] and be prohibited by contract from:

  1. Retaining the personal information “for any purpose other than for the specific purpose of performing the services specified in the contract . . . or as otherwise permitted by this title,”[2]

  2. Using the personal information “for any purpose other than for the specific purpose of performing the services specified in the contract . . . or as otherwise permitted by this title,”[3] or

  3. Disclosing the personal information “for any purpose other than for the specific purpose of performing the services specified in the contract . . . or as otherwise permitted by this title.”[4]

As a result, whether a particular analytics cookie provider is considered a “service provider” depends upon whether the contract in place between a website operator and the analytics provider contains the above-referenced terms.

The CPRA amended the CCPA’s definition such that, beginning Jan. 1, 2023, the written contract between a website operator and an analytics cookie provider would also need to contain the following additional prohibitions in order for the analytics provider to be considered a service provider:

  1. Prohibition against selling or sharing personal information,[5]

  2. Prohibition against retaining, using, or disclosing personal information “outside of the direct business relationship” between the service provider and the business,[6] and

  3. Prohibition against combining (subject to some exceptions) the personal information that the service provider receives from one business with information that it receives from another business.[7]

[1] Cal. Civ. Code 1798.140(v) (Oct. 2020).

[2] Cal. Civ. Code 1798.140(v) (Oct. 2020).

[3] Cal. Civ. Code 1798.140(v) (Oct. 2020).

[4] Cal. Civ. Code 1798.140(v).

[5] Cal. Civ. Code 1798.140(ag)(1)(A).

[6] Cal. Civ. Code 1798.140(ag)(1)(C).

[7] Cal. Civ. Code 1798.140(ag)(1)(D).

HB Ad Slot
HB Ad Slot
HB Mobile Ad Slot
HB Ad Slot
HB Mobile Ad Slot
 
NLR Logo
We collaborate with the world's leading lawyers to deliver news tailored for you. Sign Up to receive our free e-Newsbulletins

 

Sign Up for e-NewsBulletins