Decide whether a privacy statute applies to a smaller business
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Put the client's revenue, consumer counts, and "sell or share" percentage into a three-row table against the statutory thresholds. Write no opinion.
- What the lawyer must review
- Civil Code section 1798.140 defines a "business" as a for-profit entity that collects consumers' personal information, determines the purposes and means of processing, does business in California, and meets one of: annual gross revenues over 25 million dollars in the preceding calendar year, as adjusted under section 1798.199.95; alone or in combination, buys, sells or shares the personal information of 100,000 or more consumers or households a year; or derives 50 percent or more of annual revenues from selling or sharing consumers' personal information. Controlled entities with common branding, and certain joint ventures, are brought in by later paragraphs. The Attorney General's FAQ still describes the third threshold as revenue from selling personal information and does not mention sharing. Use the statute. The Attorney General also states that the CCPA generally does not apply to nonprofits or government agencies. Check the adjusted revenue figure before you rely on 25 million dollars. Opinion 512: you sign the advice.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes organising research leads. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
- Confirm that the actual tool, feature and processing terms permit use of this information, including access, retention, training and disclosure conditions.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.