Colorado Privacy Act

Title 1.81.5 California Consumer Privacy Act of 2018 (§ 1798.100 to § 1798.199.100)

1798.100. General Duties of Businesses that Collect Personal Information

(a) A business that controls the collection of a consumer's personal information shall, at or before the point of collection, inform consumers of the following:

(1) The categories of personal information to be collected and the purposes for which the categories of personal information are collected or used and whether that information is sold or shared. A business shall not collect additional categories of personal information or use personal information collected for additional purposes that are incompatible with the disclosed purpose for which the personal information was collected without providing the consumer with notice consistent with this section.

(2) If the business collects sensitive personal information, the categories of sensitive personal information to be collected and the purposes for which the categories of sensitive personal information are collected or used, and whether that information is sold or shared. A business shall not collect additional categories of sensitive personal information or use sensitive personal information collected for additional purposes that are incompatible with the disclosed purpose for which the sensitive personal information was collected without providing the consumer with notice consistent with this section.

(3) The length of time the business intends to retain each category of personal information, including sensitive personal information, or if that is not possible, the criteria used to determine that period provided that a business shall not retain a consumer's personal information or sensitive personal information for each disclosed purpose for which the personal information was collected for longer than is reasonably necessary for that disclosed purpose.

(b) A business that, acting as a third party, controls the collection of personal information about a consumer may satisfy its obligation under subdivision (a) by providing the required information prominently and conspicuously on the homepage of its internet website. In addition, if a business acting as a third party controls the collection of personal information about a consumer on its premises, including in a vehicle, then the business shall, at or before the point of collection, inform consumers as to the categories of personal information to be collected and the purposes for which the categories of personal information are used, and whether that personal information is sold, in a clear and conspicuous manner at the location.

(c) A business' collection, use, retention, and sharing of a consumer's personal information shall be reasonably necessary and proportionate to achieve the purposes for which the personal information was collected or processed, or for another disclosed purpose that is compatible with the context in which the personal information was collected, and not further processed in a manner that is incompatible with those purposes.

(d) A business that collects a consumer's personal information and that sells that personal information to, or shares it with, a third party or that discloses it to a service provider or contractor for a business purpose shall enter into an agreement with the third party, service provider, or contractor, that:

(1) Specifies that the personal information is sold or disclosed by the business only for limited and specified purposes.

(2) Obligates the third party, service provider, or contractor to comply with applicable obligations under this title and obligate those persons to provide the same level of privacy protection as is required by this title.

(3) Grants the business rights to take reasonable and appropriate steps to help ensure that the third party, service provider, or contractor uses the personal information transferred in a manner consistent with the business' obligations under this title.

(4) Requires the third party, service provider, or contractor to notify the business if it makes a determination that it can no longer meet its obligations under this title.

(5) Grants the business the right, upon notice, including under paragraph (4), to take reasonable and appropriate steps to stop and remediate unauthorized use of personal information.

(e) A business that collects a consumer's personal information shall implement reasonable security procedures and practices appropriate to the nature of the personal information to protect the personal information from unauthorized or illegal access, destruction, use, modification, or disclosure in accordance with Section 1798.81.5.

(f) Nothing in this section shall require a business to disclose trade secrets, as specified in regulations adopted pursuant to paragraph (3) of subdivision (a) of Section 1798.185.

§ 1798.105. Consumers’ Right to Delete Personal Information

(a) A consumer shall have the right to request that a business delete any personal information about the consumer which the business has collected from the consumer.

(b) A business that collects personal information about consumers shall disclose, pursuant to Section 1798.130, the consumer's rights to request the deletion of the consumer's personal information.

(c)   (1) A business that receives a verifiable consumer request from a consumer to delete the consumer's personal information pursuant to subdivision (a) of this section shall delete the consumer's personal information from its records, notify any service providers or contractors to delete the consumer's personal information from their records, and notify all third parties to whom the business has sold or shared the personal information to delete the consumer's personal information unless this proves impossible or involves disproportionate effort.

(2) The business may maintain a confidential record of deletion requests solely for the purpose of preventing the personal information of a consumer who has submitted a deletion request from being sold, for compliance with laws or for other purposes, solely to the extent permissible under this title.

(3) A service provider or contractor shall cooperate with the business in responding to a verifiable consumer request, and at the direction of the business, shall delete, or enable the business to delete and shall notify any of its own service providers or contractors to delete personal information about the consumer collected, used, processed, or retained by the service provider or the contractor. The service provider or contractor shall notify any service providers, contractors, or third parties who may have accessed personal information from or through the service provider or contractor, unless the information was accessed at the direction of the business, to delete the consumer's personal information unless this proves impossible or involves disproportionate effort. A service provider or contractor shall not be required to comply with a deletion request submitted by the consumer directly to the service provider or contractor to the extent that the service provider or contractor has collected, used, processed, or retained the consumer's personal information in its role as a service provider or contractor to the business.

(d) A business, or a service provider or contractor acting pursuant to its contract with the business, another service provider, or another contractor, shall not be required to comply with a consumer's request to delete the consumer's personal information if it is reasonably necessary for the business, service provider, or contractor to maintain the consumer's personal information in order to:

(1) Complete the transaction for which the personal information was collected, fulfill the terms of a written warranty or product recall conducted in accordance with federal law, provide a good or service requested by the consumer, or reasonably anticipated by the consumer within the context of a business' ongoing business relationship with the consumer, or otherwise perform a contract between the business and the consumer.

(2) Help to ensure security and integrity to the extent the use of the consumer's personal information is reasonably necessary and proportionate for those purposes.

(3) Debug to identify and repair errors that impair existing intended functionality.

(4) Exercise free speech, ensure the right of another consumer to exercise that consumer's right of free speech, or exercise another right provided for by law.

(5) Comply with the California Electronic Communications Privacy Act pursuant to Chapter 3.6 (commencing with Section 1546) of Title 12 of Part 2 of the Penal Code.

(6) Engage in public or peer-reviewed scientific, historical, or statistical research that conforms or adheres to all other applicable ethics and privacy laws, when the business' deletion of the information is likely to render impossible or seriously impair the ability to complete such research, if the consumer has provided informed consent.

(7) To enable solely internal uses that are reasonably aligned with the expectations of the consumer based on the consumer's relationship with the business and compatible with the context in which the consumer provided the information.

(8) Comply with a legal obligation.

§ 1798.106. Consumers’ Right to Correct Inaccurate Personal Information

(a) A consumer shall have the right to request a business that maintains inaccurate personal information about the consumer to correct that inaccurate personal information, taking into account the nature of the personal information and the purposes of the processing of the personal information.

(b) A business that collects personal information about consumers shall disclose, pursuant to Section 1798.130, the consumer's right to request correction of inaccurate personal information.

(c) A business that receives a verifiable consumer request to correct inaccurate personal information shall use commercially reasonable efforts to correct the inaccurate personal information as directed by the consumer, pursuant to Section 1798.130 and regulations adopted pursuant to paragraph (8) of subdivision (a) of Section 1798.185.

§ 1798.110. Consumers’ Right to Know What Personal Information is Being Collected. Right to Access Personal Information

(a) A consumer shall have the right to request that a business that collects personal information about the consumer disclose to the consumer the following:

(1) The categories of personal information it has collected about that consumer.

(2) The categories of sources from which the personal information is collected.

(3) The business or commercial purpose for collecting, selling, or sharing personal information.

(4) The categories of third parties to whom the business discloses personal information.

(5) The specific pieces of personal information it has collected about that consumer.

(b) A business that collects personal information about a consumer shall disclose to the consumer, pursuant to subparagraph (B) of paragraph (3) of subdivision (a) of Section 1798.130, the information specified in subdivision (a) upon receipt of a verifiable consumer request from the consumer, provided that a business shall be deemed to be in compliance with paragraphs (1) to (4), inclusive, of subdivision (a) to the extent that the categories of information and the business or commercial purpose for collecting, selling, or sharing personal information it would be required to disclose to the consumer pursuant to paragraphs (1) to (4), inclusive, of subdivision (a) is the same as the information it has disclosed pursuant to paragraphs (1) to (4), inclusive, of subdivision (c).

(c) A business that collects personal information about consumers shall disclose, pursuant to subparagraph (B) of paragraph (5) of subdivision (a) of Section 1798.130:

(1) The categories of personal information it has collected about consumers.

(2) The categories of sources from which the personal information is collected.

(3) The business or commercial purpose for collecting, selling, or sharing personal information.

(4) The categories of third parties to whom the business discloses personal information.

(5) That a consumer has the right to request the specific pieces of personal information the business has collected about that consumer.

§ 1798.115. Consumers’ Right to Know What Personal Information is Sold or Shared and to Whom

(a) A consumer shall have the right to request that a business that sells or shares the consumer's personal information, or that discloses it for a business purpose, disclose to that consumer:

(1) The categories of personal information that the business collected about the consumer.

(2) The categories of personal information that the business sold or shared about the consumer and the categories of third parties to whom the personal information was sold or shared, by category or categories of personal information for each category of third parties to whom the personal information was sold or shared.

(3) The categories of personal information that the business disclosed about the consumer for a business purpose and the categories of persons to whom it was disclosed for a business purpose.

(b) A business that sells or shares personal information about a consumer, or that discloses a consumer's personal information for a business purpose, shall disclose, pursuant to paragraph (4) of subdivision (a) of Section 1798.130, the information specified in subdivision (a) to the consumer upon receipt of a verifiable consumer request from the consumer.

(c) A business that sells or shares consumers' personal information, or that discloses consumers' personal information for a business purpose, shall disclose, pursuant to subparagraph (C) of paragraph (5) of subdivision (a) of Section 1798.130:

(1) The category or categories of consumers' personal information it has sold or shared, or if the business has not sold or shared consumers' personal information, it shall disclose that fact.

(2) The category or categories of consumers' personal information it has disclosed for a business purpose, or if the business has not disclosed consumers' personal information for a business purpose, it shall disclose that fact.

(d) A third party shall not sell or share personal information about a consumer that has been sold to, or shared with, the third party by a business unless the consumer has received explicit notice and is provided an opportunity to exercise the right to opt-out pursuant to Section 1798.120.

§ 1798.120. Consumers’ Right to Opt Out of Sale or Sharing of Personal Information

(a) A consumer shall have the right, at any time, to direct a business that sells or shares personal information about the consumer to third parties not to sell or share the consumer's personal information. This right may be referred to as the right to opt-out of sale or sharing.

(b) A business that sells consumers' personal information to, or shares it with, third parties shall provide notice to consumers, pursuant to subdivision (a) of Section 1798.135, that this information may be sold or shared and that consumers have the “right to opt-out” of the sale or sharing of their personal information.

(c) Notwithstanding subdivision (a), a business shall not sell or share the personal information of consumers if the business has actual knowledge that the consumer is less than 16 years of age, unless the consumer, in the case of consumers at least 13 years of age and less than 16 years of age, or the consumer's parent or guardian, in the case of consumers who are less than 13 years of age, has affirmatively authorized the sale or sharing of the consumer's personal information. A business that willfully disregards the consumer's age shall be deemed to have had actual knowledge of the consumer's age.

(d) A business that has received direction from a consumer not to sell or share the consumer's personal information or, in the case of a minor consumer's personal information has not received consent to sell or share the minor consumer's personal information, shall be prohibited, pursuant to paragraph (4) of subdivision (c) of Section 1798.135, from selling or sharing the consumer's personal information after its receipt of the consumer's direction, unless the consumer subsequently provides consent, for the sale or sharing of the consumer's personal information.

§ 1798.121. Consumers’ Right to Limit Use and Disclosure of Sensitive Personal Information

(a) A consumer shall have the right, at any time, to direct a business that collects sensitive personal information about the consumer to limit its use of the consumer's sensitive personal information to that use which is necessary to perform the services or provide the goods reasonably expected by an average consumer who requests those goods or services, to perform the services set forth in paragraphs (2), (4), (5), and (8) of subdivision (e) of Section 1798.140, and as authorized by regulations adopted pursuant to subparagraph (C) of paragraph (19) of subdivision (a) of Section 1798.185. A business that uses or discloses a consumer's sensitive personal information for purposes other than those specified in this subdivision shall provide notice to consumers, pursuant to subdivision (a) of Section 1798.135, that this information may be used, or disclosed to a service provider or contractor, for additional, specified purposes and that consumers have the right to limit the use or disclosure of their sensitive personal information.

(b) A business that has received direction from a consumer not to use or disclose the consumer's sensitive personal information, except as authorized by subdivision (a), shall be prohibited, pursuant to paragraph (4) of subdivision (c) of Section 1798.135, from using or disclosing the consumer's sensitive personal information for any other purpose after its receipt of the consumer's direction unless the consumer subsequently provides consent for the use or disclosure of the consumer's sensitive personal information for additional purposes.

(c) A service provider or contractor that assists a business in performing the purposes authorized by subdivision (a) may not use the sensitive personal information after it has received instructions from the business and to the extent it has actual knowledge that the personal information is sensitive personal information for any other purpose. A service provider or contractor is only required to limit its use of sensitive personal information received pursuant to a written contract with the business in response to instructions from the business and only with respect to its relationship with that business.

(d) Sensitive personal information that is collected or processed without the purpose of inferring characteristics about a consumer is not subject to this section, as further defined in regulations adopted pursuant to subparagraph (C) of paragraph (19) of subdivision (a) of Section 1798.185, and shall be treated as personal information for purposes of all other sections of this act, including Section 1798.100.

§ 1798.125. Consumers’ Right of No Retaliation Following Opt Out or Exercise of Other Rights

(a)(1) A business shall not discriminate against a consumer because the consumer exercised any of the consumer's rights under this title, including, but not limited to, by:

(A) Denying goods or services to the consumer.

(B) Charging different prices or rates for goods or services, including through the use of discounts or other benefits or imposing penalties.

(C) Providing a different level or quality of goods or services to the consumer.

(D) Suggesting that the consumer will receive a different price or rate for goods or services or a different level or quality of goods or services.

(E) Retaliating against an employee, applicant for employment, or independent contractor, as defined in subparagraph (A) of paragraph (2) of subdivision (m) of Section 1798.145, for exercising their rights under this title.

(2) Nothing in this subdivision prohibits a business, pursuant to subdivision (b), from charging a consumer a different price or rate, or from providing a different level or quality of goods or services to the consumer, if that difference is reasonably related to the value provided to the business by the consumer's data.

(3) This subdivision does not prohibit a business from offering loyalty, rewards, premium features, discounts, or club card programs consistent with this title.

(b)(1) A business may offer financial incentives, including payments to consumers as compensation, for the collection of personal information, the sale or sharing of personal information, or the retention of personal information. A business may also offer a different price, rate, level, or quality of goods or services to the consumer if that price or difference is reasonably related to the value provided to the business by the consumer's data.

(2) A business that offers any financial incentives pursuant to this subdivision, shall notify consumers of the financial incentives pursuant to Section 1798.130.

(3) A business may enter a consumer into a financial incentive program only if the consumer gives the business prior opt-in consent pursuant to Section 1798.130 that clearly describes the material terms of the financial incentive program, and which may be revoked by the consumer at any time. If a consumer refuses to provide opt-in consent, then the business shall wait for at least 12 months before next requesting that the consumer provide opt-in consent, or as prescribed by regulations adopted pursuant to Section 1798.185.

(4) A business shall not use financial incentive practices that are unjust, unreasonable, coercive, or usurious in nature.

§ 1798.130. Notice, Disclosure, Correction, and Deletion Requirements

(a) In order to comply with Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, and 1798.125, a business shall, in a form that is reasonably accessible to consumers:

(1)(A) Make available to consumers two or more designated methods for submitting requests for information required to be disclosed pursuant to Sections 1798.110 and 1798.115, or requests for deletion or correction pursuant to Sections 1798.105 and 1798.106, respectively, including, at a minimum, a toll-free telephone number. A business that operates exclusively online and has a direct relationship with a consumer from whom it collects personal information shall only be required to provide an email address for submitting requests for information required to be disclosed pursuant to Sections 1798.110 and 1798.115, or for requests for deletion or correction pursuant to Sections 1798.105 and 1798.106, respectively.

(B) If the business maintains an internet website, make the internet website available to consumers to submit requests for information required to be disclosed pursuant to Sections 1798.110 and 1798.115, or requests for deletion or correction pursuant to Sections 1798.105 and 1798.106, respectively.

(2)(A) Disclose and deliver the required information to a consumer free of charge, correct inaccurate personal information, or delete a consumer's personal information, based on the consumer's request, within 45 days of receiving a verifiable consumer request from the consumer. The business shall promptly take steps to determine whether the request is a verifiable consumer request, but this shall not extend the business's duty to disclose and deliver the information, to correct inaccurate personal information, or to delete personal information within 45 days of receipt of the consumer's request. The time period to provide the required information, to correct inaccurate personal information, or to delete personal information may be extended once by an additional 45 days when reasonably necessary, provided the consumer is provided notice of the extension within the first 45-day period. The disclosure of the required information shall be made in writing and delivered through the consumer's account with the business, if the consumer maintains an account with the business, or by mail or electronically at the consumer's option if the consumer does not maintain an account with the business, in a readily useable format that allows the consumer to transmit this information from one entity to another entity without hindrance. The business may require authentication of the consumer that is reasonable in light of the nature of the personal information requested, but shall not require the consumer to create an account with the business in order to make a verifiable consumer request provided that if the consumer, has an account with the business, the business may require the consumer to use that account to submit a verifiable consumer request.

(B) The disclosure of the required information shall cover the 12-month period preceding the business' receipt of the verifiable consumer request provided that, upon the adoption of a regulation pursuant to paragraph (9) of subdivision (a) of Section 1798.185, a consumer may request that the business disclose the required information beyond the 12-month period, and the business shall be required to provide that information unless doing so proves impossible or would involve a disproportionate effort. A consumer's right to request required information beyond the 12-month period, and a business's obligation to provide that information, shall only apply to personal information collected on or after January 1, 2022. Nothing in this subparagraph shall require a business to keep personal information for any length of time.

(3)(A) A business that receives a verifiable consumer request pursuant to Section 1798.110 or 1798.115 shall disclose any personal information it has collected about a consumer, directly or indirectly, including through or by a service provider or contractor, to the consumer. A service provider or contractor shall not be required to comply with a verifiable consumer request received directly from a consumer or a consumer's authorized agent, pursuant to Section 1798.110 or 1798.115, to the extent that the service provider or contractor has collected personal information about the consumer in its role as a service provider or contractor. A service provider or contractor shall provide assistance to a business with which it has a contractual relationship with respect to the business' response to a verifiable consumer request, including, but not limited to, by providing to the business the consumer's personal information in the service provider or contractor's possession, which the service provider or contractor obtained as a result of providing services to the business, and by correcting inaccurate information or by enabling the business to do the same. A service provider or contractor that collects personal information pursuant to a written contract with a business shall be required to assist the business through appropriate technical and organizational measures in complying with the requirements of subdivisions (d) to (f), inclusive, of Section 1798.100, taking into account the nature of the processing.

(B) For purposes of subdivision (b) of Section 1798.110:

(i) To identify the consumer, associate the information provided by the consumer in the verifiable consumer request to any personal information previously collected by the business about the consumer.

(ii) Identify by category or categories the personal information collected about the consumer for the applicable period of time by reference to the enumerated category or categories in subdivision (c) that most closely describes the personal information collected; the categories of sources from which the consumer's personal information was collected; the business or commercial purpose for collecting, selling, or sharing the consumer's personal information; and the categories of third parties to whom the business discloses the consumer's personal information.

(iii) Provide the specific pieces of personal information obtained from the consumer in a format that is easily understandable to the average consumer, and to the extent technically feasible, in a structured, commonly used, machine-readable format that may also be transmitted to another entity at the consumer's request without hindrance. “Specific pieces of information” do not include data generated to help ensure security and integrity or as prescribed by regulation. Personal information is not considered to have been disclosed by a business when a consumer instructs a business to transfer the consumer's personal information from one business to another in the context of switching services.

(4) For purposes of subdivision (b) of Section 1798.115:

(A) Identify the consumer and associate the information provided by the consumer in the verifiable consumer request to any personal information previously collected by the business about the consumer.

(B) Identify by category or categories the personal information of the consumer that the business sold or shared during the applicable period of time by reference to the enumerated category in subdivision (c) that most closely describes the personal information, and provide the categories of third parties to whom the consumer's personal information was sold or shared during the applicable period of time by reference to the enumerated category or categories in subdivision (c) that most closely describes the personal information sold or shared. The business shall disclose the information in a list that is separate from a list generated for the purposes of subparagraph (C).

(C) Identify by category or categories the personal information of the consumer that the business disclosed for a business purpose during the applicable period of time by reference to the enumerated category or categories in subdivision (c) that most closely describes the personal information, and provide the categories of persons to whom the consumer's personal information was disclosed for a business purpose during the applicable period of time by reference to the enumerated category or categories in subdivision (c) that most closely describes the personal information disclosed. The business shall disclose the information in a list that is separate from a list generated for the purposes of subparagraph (B).

(5) Disclose the following information in its online privacy policy or policies if the business has an online privacy policy or policies and in any California-specific description of consumers' privacy rights, or if the business does not maintain those policies, on its internet website, and update that information at least once every 12 months:

(A) A description of a consumer's rights pursuant to Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, and 1798.125 and two or more designated methods for submitting requests, except as provided in subparagraph (A) of paragraph (1) of subdivision (a).

(B) For purposes of subdivision (c) of Section 1798.110:

(i) A list of the categories of personal information it has collected about consumers in the preceding 12 months by reference to the enumerated category or categories in subdivision (c) that most closely describe the personal information collected.

(ii) The categories of sources from which consumers' personal information is collected.

(iii) The business or commercial purpose for collecting, selling, or sharing consumers' personal information.

(iv) The categories of third parties to whom the business discloses consumers' personal information.

(C) For purposes of paragraphs (1) and (2) of subdivision (c) of Section 1798.115, two separate lists:

(i) A list of the categories of personal information it has sold or shared about consumers in the preceding 12 months by reference to the enumerated category or categories in subdivision (c) that most closely describe the personal information sold or shared, or if the business has not sold or shared consumers' personal information in the preceding 12 months, the business shall prominently disclose that fact in its privacy policy.

(ii) A list of the categories of personal information it has disclosed about consumers for a business purpose in the preceding 12 months by reference to the enumerated category in subdivision (c) that most closely describes the personal information disclosed, or if the business has not disclosed consumers' personal information for a business purpose in the preceding 12 months, the business shall disclose that fact.

(6) Ensure that all individuals responsible for handling consumer inquiries about the business' privacy practices or the business' compliance with this title are informed of all requirements in Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.125, and this section, and how to direct consumers to exercise their rights under those sections.

(7) Use any personal information collected from the consumer in connection with the business' verification of the consumer's request solely for the purposes of verification and shall not further disclose the personal information, retain it longer than necessary for purposes of verification, or use it for unrelated purposes.

(b) A business is not obligated to provide the information required by Sections 1798.110 and 1798.115 to the same consumer more than twice in a 12-month period.

(c) The categories of personal information required to be disclosed pursuant to Sections 1798.100, 1798.110, and 1798.115 shall follow the definitions of personal information and sensitive personal information in Section 1798.140 by describing the categories of personal information using the specific terms set forth in subparagraphs (A) to (K), inclusive, of paragraph (1) of subdivision (v) of Section 1798.140 and by describing the categories of sensitive personal information using the specific terms set forth in paragraphs (1) to (9), inclusive, of subdivision (ae) of Section 1798.140.

§ 1798.135. Methods of Limiting Sale, Sharing, and Use of Personal Information and Use of Sensitive Personal Information

(a) A business that sells or shares consumers' personal information or uses or discloses consumers' sensitive personal information for purposes other than those authorized by subdivision (a) of Section 1798.121 shall, in a form that is reasonably accessible to consumers:

(1) Provide a clear and conspicuous link on the business's internet homepages, titled “Do Not Sell or Share My Personal Information,” to an internet web page that enables a consumer, or a person authorized by the consumer, to opt-out of the sale or sharing of the consumer's personal information.

(2) Provide a clear and conspicuous link on the business' internet homepages, titled “Limit the Use of My Sensitive Personal Information,” that enables a consumer, or a person authorized by the consumer, to limit the use or disclosure of the consumer's sensitive personal information to those uses authorized by subdivision (a) of Section 1798.121.

(3) At the business' discretion, utilize a single, clearly labeled link on the business' internet homepages, in lieu of complying with paragraphs (1) and (2), if that link easily allows a consumer to opt out of the sale or sharing of the consumer's personal information and to limit the use or disclosure of the consumer's sensitive personal information.

(4) In the event that a business responds to opt-out requests received pursuant to paragraph (1), (2), or (3) by informing the consumer of a charge for the use of any product or service, present the terms of any financial incentive offered pursuant to subdivision (b) of Section 1798.125 for the retention, use, sale, or sharing of the consumer's personal information.

(b)(1) A business shall not be required to comply with subdivision (a) if the business allows consumers to opt out of the sale or sharing of their personal information and to limit the use of their sensitive personal information through an opt-out preference signal sent with the consumer's consent by a platform, technology, or mechanism, based on technical specifications set forth in regulations adopted pursuant to paragraph (20) of subdivision (a) of Section 1798.185, to the business indicating the consumer's intent to opt out of the business' sale or sharing of the consumer's personal information or to limit the use or disclosure of the consumer's sensitive personal information, or both.

(2) A business that allows consumers to opt out of the sale or sharing of their personal information and to limit the use of their sensitive personal information pursuant to paragraph (1) may provide a link to a web page that enables the consumer to consent to the business ignoring the opt-out preference signal with respect to that business' sale or sharing of the consumer's personal information or the use of the consumer's sensitive personal information for additional purposes provided that:

(A) The consent web page also allows the consumer or a person authorized by the consumer to revoke the consent as easily as it is affirmatively provided.

(B) The link to the web page does not degrade the consumer's experience on the web page the consumer intends to visit and has a similar look, feel, and size relative to other links on the same web page.

(C) The consent web page complies with technical specifications set forth in regulations adopted pursuant to paragraph (20) of subdivision (a) of Section 1798.185.

(3) A business that complies with subdivision (a) is not required to comply with subdivision (b). For the purposes of clarity, a business may elect whether to comply with subdivision (a) or subdivision (b).

(c) A business that is subject to this section shall:

(1) Not require a consumer to create an account or provide additional information beyond what is necessary in order to direct the business not to sell or share the consumer's personal information or to limit use or disclosure of the consumer's sensitive personal information.

(2) Include a description of a consumer's rights pursuant to Sections 1798.120 and 1798.121, along with a separate link to the “Do Not Sell or Share My Personal Information” internet web page and a separate link to the “Limit the Use of My Sensitive Personal Information” internet web page, if applicable, or a single link to both choices, or a statement that the business responds to and abides by opt-out preference signals sent by a platform, technology, or mechanism in accordance with subdivision (b), in:

(A) Its online privacy policy or policies if the business has an online privacy policy or policies.

(B) Any California-specific description of consumers' privacy rights.

(3) Ensure that all individuals responsible for handling consumer inquiries about the business's privacy practices or the business's compliance with this title are informed of all requirements in Sections 1798.120, 1798.121, and this section and how to direct consumers to exercise their rights under those sections.

(4) For consumers who exercise their right to opt-out of the sale or sharing of their personal information or limit the use or disclosure of their sensitive personal information, refrain from selling or sharing the consumer's personal information or using or disclosing the consumer's sensitive personal information and wait for at least 12 months before requesting that the consumer authorize the sale or sharing of the consumer's personal information or the use and disclosure of the consumer's sensitive personal information for additional purposes, or as authorized by regulations.

(5) For consumers under 16 years of age who do not consent to the sale or sharing of their personal information, refrain from selling or sharing the personal information of the consumer under 16 years of age and wait for at least 12 months before requesting the consumer's consent again, or as authorized by regulations or until the consumer attains 16 years of age.

(6) Use any personal information collected from the consumer in connection with the submission of the consumer's opt-out request solely for the purposes of complying with the opt-out request.

(d) Nothing in this title shall be construed to require a business to comply with the title by including the required links and text on the homepage that the business makes available to the public generally, if the business maintains a separate and additional homepage that is dedicated to California consumers and that includes the required links and text, and the business takes reasonable steps to ensure that California consumers are directed to the homepage for California consumers and not the homepage made available to the public generally.

(e) A consumer may authorize another person to opt-out of the sale or sharing of the consumer's personal information and to limit the use of the consumer's sensitive personal information on the consumer's behalf, including through an opt-out preference signal, as defined in paragraph (1) of subdivision (b), indicating the consumer's intent to opt out, and a business shall comply with an opt-out request received from a person authorized by the consumer to act on the consumer's behalf, pursuant to regulations adopted by the Attorney General regardless of whether the business has elected to comply with subdivision (a) or (b). For purposes of clarity, a business that elects to comply with subdivision (a) may respond to the consumer's opt-out consistent with Section 1798.125.

(f) If a business communicates a consumer's opt-out request to any person authorized by the business to collect personal information, the person shall thereafter only use that consumer's personal information for a business purpose specified by the business, or as otherwise permitted by this title, and shall be prohibited from:

(1) Selling or sharing the personal information.

(2) Retaining, using, or disclosing that consumer's personal information.

(A) For any purpose other than for the specific purpose of performing the services offered to the business.

(B) Outside of the direct business relationship between the person and the business.

(C) For a commercial purpose other than providing the services to the business.

(g) A business that communicates a consumer's opt-out request to a person pursuant to subdivision (f) shall not be liable under this title if the person receiving the opt-out request violates the restrictions set forth in the title provided that, at the time of communicating the opt-out request, the business does not have actual knowledge, or reason to believe, that the person intends to commit such a violation. Any provision of a contract or agreement of any kind that purports to waive or limit in any way this subdivision shall be void and unenforceable.

§ 1798.140. Definitions

For purposes of this title:

(a) “Advertising and marketing” means a communication by a business or a person acting on the business' behalf in any medium intended to induce a consumer to obtain goods, services, or employment.

(b) “Aggregate consumer information” means information that relates to a group or category of consumers, from which individual consumer identities have been removed, that is not linked or reasonably linkable to any consumer or household, including via a device. “Aggregate consumer information” does not mean one or more individual consumer records that have been deidentified.

(c) “Biometric information” means an individual's physiological, biological, or behavioral characteristics, including information pertaining to an individual's deoxyribonucleic acid (DNA), that is used or is intended to be used singly or in combination with each other or with other identifying data, to establish individual identity. Biometric information includes, but is not limited to, imagery of the iris, retina, fingerprint, face, hand, palm, vein patterns, and voice recordings, from which an identifier template, such as a faceprint, a minutiae template, or a voiceprint, can be extracted, and keystroke patterns or rhythms, gait patterns or rhythms, and sleep, health, or exercise data that contain identifying information.

(d) “Business” means:

(1) A sole proprietorship, partnership, limited liability company, corporation, association, or other legal entity that is organized or operated for the profit or financial benefit of its shareholders or other owners, that collects consumers' personal information, or on the behalf of which such information is collected and that alone, or jointly with others, determines the purposes and means of the processing of consumers' personal information, that does business in the State of California, and that satisfies one or more of the following thresholds:

(A) As of January 1 of the calendar year, had annual gross revenues in excess of twenty-five million dollars ($25,000,000) in the preceding calendar year, as adjusted pursuant to paragraph (5) of subdivision (a) of Section 1798.185.

(B) Alone or in combination, annually buys, sells, or shares the personal information of 100,000 or more consumers or households.

(C) Derives 50 percent or more of its annual revenues from selling or sharing consumers' personal information.

(2) Any entity that controls or is controlled by a business, as defined in paragraph (1), and that shares common branding with the business and with whom the business shares consumers' personal information. “Control” or “controlled” means ownership of, or the power to vote, more than 50 percent of the outstanding shares of any class of voting security of a business; control in any manner over the election of a majority of the directors, or of individuals exercising similar functions; or the power to exercise a controlling influence over the management of a company. “Common branding” means a shared name, servicemark, or trademark that the average consumer would understand that two or more entities are commonly owned.

(3) A joint venture or partnership composed of businesses in which each business has at least a 40 percent interest. For purposes of this title, the joint venture or partnership and each business that composes the joint venture or partnership shall separately be considered a single business, except that personal information in the possession of each business and disclosed to the joint venture or partnership shall not be shared with the other business.

(4) A person that does business in California, that is not covered by paragraph (1), (2), or (3), and that voluntarily certifies to the California Privacy Protection Agency that it is in compliance with, and agrees to be bound by, this title.

(e) “Business purpose” means the use of personal information for the business' operational purposes, or other notified purposes, or for the service provider or contractor's operational purposes, as defined by regulations adopted pursuant to paragraph (11) of subdivision (a) of Section 1798.185, provided that the use of personal information shall be reasonably necessary and proportionate to achieve the purpose for which the personal information was collected or processed or for another purpose that is compatible with the context in which the personal information was collected. Business purposes are:

(1) Auditing related to counting ad impressions to unique visitors, verifying positioning and quality of ad impressions, and auditing compliance with this specification and other standards.

(2) Helping to ensure security and integrity to the extent the use of the consumer's personal information is reasonably necessary and proportionate for these purposes.

(3) Debugging to identify and repair errors that impair existing intended functionality.

(4) Short-term, transient use, including, but not limited to, nonpersonalized advertising shown as part of a consumer's current interaction with the business, provided that the consumer's personal information is not disclosed to another third party and is not used to build a profile about the consumer or otherwise alter the consumer's experience outside the current interaction with the business.

(5) Performing services on behalf of the business, including maintaining or servicing accounts, providing customer service, processing or fulfilling orders and transactions, verifying customer information, processing payments, providing financing, providing analytic services, providing storage, or providing similar services on behalf of the business.

(6) Providing advertising and marketing services, except for cross-context behavioral advertising, to the consumer provided that, for the purpose of advertising and marketing, a service provider or contractor shall not combine the personal information of opted-out consumers that the service provider or contractor receives from, or on behalf of, the business with personal information that the service provider or contractor receives from, or on behalf of, another person or persons or collects from its own interaction with consumers.

(7) Undertaking internal research for technological development and demonstration.

(8) Undertaking activities to verify or maintain the quality or safety of a service or device that is owned, manufactured, manufactured for, or controlled by the business, and to improve, upgrade, or enhance the service or device that is owned, manufactured, manufactured for, or controlled by the business.

(f) “Collects,” “collected,” or “collection” means buying, renting, gathering, obtaining, receiving, or accessing any personal information pertaining to a consumer by any means. This includes receiving information from the consumer, either actively or passively, or by observing the consumer's behavior.

(g) “Commercial purposes” means to advance a person's commercial or economic interests, such as by inducing another person to buy, rent, lease, join, subscribe to, provide, or exchange products, goods, property, information, or services, or enabling or effecting, directly or indirectly, a commercial transaction.

(h) “Consent” means any freely given, specific, informed, and unambiguous indication of the consumer's wishes by which the consumer, or the consumer's legal guardian, a person who has power of attorney, or a person acting as a conservator for the consumer, including by a statement or by a clear affirmative action, signifies agreement to the processing of personal information relating to the consumer for a narrowly defined particular purpose. Acceptance of a general or broad terms of use, or similar document, that contains descriptions of personal information processing along with other, unrelated information, does not constitute consent. Hovering over, muting, pausing, or closing a given piece of content does not constitute consent. Likewise, agreement obtained through use of dark patterns does not constitute consent.

(i) “Consumer” means a natural person who is a California resident, as defined in Section 17014 of Title 18 of the California Code of Regulations, as that section read on September 1, 2017, however identified, including by any unique identifier.

(j)(1) “Contractor” means a person to whom the business makes available a consumer's personal information for a business purpose, pursuant to a written contract with the business, provided that the contract:

(A) Prohibits the contractor from:

(i) Selling or sharing the personal information.

(ii) Retaining, using, or disclosing the personal information for any purpose other than for the business purposes specified in the contract, including retaining, using, or disclosing the personal information for a commercial purpose other than the business purposes specified in the contract, or as otherwise permitted by this title.

(iii) Retaining, using, or disclosing the information outside of the direct business relationship between the contractor and the business.

(iv) Combining the personal information that the contractor receives pursuant to a written contract with the business with personal information that it receives from or on behalf of another person or persons, or collects from its own interaction with the consumer, provided that the contractor may combine personal information to perform any business purpose as defined in regulations adopted pursuant to paragraph (10) of subdivision (a) of Section 1798.185, except as provided for in paragraph (6) of subdivision (e) and in regulations adopted by the California Privacy Protection Agency.

(B) Includes a certification made by the contractor that the contractor understands the restrictions in subparagraph (A) and will comply with them.

(C) Permits, subject to agreement with the contractor, the business to monitor the contractor's compliance with the contract through measures, including, but not limited to, ongoing manual reviews and automated scans and regular assessments, audits, or other technical and operational testing at least once every 12 months.

(2) If a contractor engages any other person to assist it in processing personal information for a business purpose on behalf of the business, or if any other person engaged by the contractor engages another person to assist in processing personal information for that business purpose, it shall notify the business of that engagement, and the engagement shall be pursuant to a written contract binding the other person to observe all the requirements set forth in paragraph (1).

(k) “Cross-context behavioral advertising” means the targeting of advertising to a consumer based on the consumer's personal information obtained from the consumer's activity across businesses, distinctly-branded websites, applications, or services, other than the business, distinctly-branded website, application, or service with which the consumer intentionally interacts.

(l) “Dark pattern” means a user interface designed or manipulated with the substantial effect of subverting or impairing user autonomy, decisionmaking, or choice, as further defined by regulation.

(m) “Deidentified” means information that cannot reasonably be used to infer information about, or otherwise be linked to, a particular consumer provided that the business that possesses the information:

(1) Takes reasonable measures to ensure that the information cannot be associated with a consumer or household.

(2) Publicly commits to maintain and use the information in deidentified form and not to attempt to reidentify the information, except that the business may attempt to reidentify the information solely for the purpose of determining whether its deidentification processes satisfy the requirements of this subdivision.

(3) Contractually obligates any recipients of the information to comply with all provisions of this subdivision.

(n) “Designated methods for submitting requests” means a mailing address, email address, internet web page, internet web portal, toll-free telephone number, or other applicable contact information, whereby consumers may submit a request or direction under this title, and any new, consumer-friendly means of contacting a business, as approved by the Attorney General pursuant to Section 1798.185.

(o) “Device” means any physical object that is capable of connecting to the Internet, directly or indirectly, or to another device.

(p) “Homepage” means the introductory page of an internet website and any internet web page where personal information is collected. In the case of an online service, such as a mobile application, homepage means the application's platform page or download page, a link within the application, such as from the application configuration, “About,” “Information,'' or settings page, and any other location that allows consumers to review the notices required by this title, including, but not limited to, before downloading the application.

(q) “Household” means a group, however identified, of consumers who cohabitate with one another at the same residential address and share use of common devices or services.

(r) “Infer” or “inference” means the derivation of information, data, assumptions, or conclusions from facts, evidence, or another source of information or data.

(s) “Intentionally interacts” means when the consumer intends to interact with a person, or disclose personal information to a person, via one or more deliberate interactions, including visiting the person's website or purchasing a good or service from the person. Hovering over, muting, pausing, or closing a given piece of content does not constitute a consumer's intent to interact with a person.

(t) “Nonpersonalized advertising” means advertising and marketing that is based solely on a consumer's personal information derived from the consumer's current interaction with the business with the exception of the consumer's precise geolocation.

(u) “Person” means an individual, proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, limited liability company, association, committee, and any other organization or group of persons acting in concert.

(v)(1) “Personal information” means information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household. Personal information includes, but is not limited to, the following if it identifies, relates to, describes, is reasonably capable of being associated with, or could be reasonably linked, directly or indirectly, with a particular consumer or household:

(A) Identifiers such as a real name, alias, postal address, unique personal identifier, online identifier, Internet Protocol address, email address, account name, social security number, driver's license number, passport number, or other similar identifiers.

(B) Any personal information described in subdivision (e) of Section 1798.80.

(C) Characteristics of protected classifications under California or federal law.

(D) Commercial information, including records of personal property, products or services purchased, obtained, or considered, or other purchasing or consuming histories or tendencies.

(E) Biometric information.

(F) Internet or other electronic network activity information, including, but not limited to, browsing history, search history, and information regarding a consumer's interaction with an internet website application, or advertisement.

(G) Geolocation data.

(H) Audio, electronic, visual, thermal, olfactory, or similar information.

(I) Professional or employment-related information.

(J) Education information, defined as information that is not publicly available personally identifiable information as defined in the Family Educational Rights and Privacy Act (20 U.S.C. Sec. 1232g; 34 C.F.R. Part 99).

(K) Inferences drawn from any of the information identified in this subdivision to create a profile about a consumer reflecting the consumer's preferences, characteristics, psychological trends, predispositions, behavior, attitudes, intelligence, abilities, and aptitudes.

(L) Sensitive personal information.

(2) “Personal information” does not include publicly available information or lawfully obtained, truthful information that is a matter of public concern. For purposes of this paragraph, “publicly available” means: information that is lawfully made available from federal, state, or local government records, or information that a business has a reasonable basis to believe is lawfully made available to the general public by the consumer or from widely distributed media; or information made available by a person to whom the consumer has disclosed the information if the consumer has not restricted the information to a specific audience. “Publicly available” does not mean biometric information collected by a business about a consumer without the consumer's knowledge.

(3) “Personal information” does not include consumer information that is deidentified or aggregate consumer information.

(w) “Precise geolocation” means any data that is derived from a device and that is used or intended to be used to locate a consumer within a geographic area that is equal to or less than the area of a circle with a radius of 1,850 feet, except as prescribed by regulations.

(x) “Probabilistic identifier” means the identification of a consumer or a consumer's device to a degree of certainty of more probable than not based on any categories of personal information included in, or similar to, the categories enumerated in the definition of personal information.

(y) “Processing” means any operation or set of operations that are performed on personal information or on sets of personal information, whether or not by automated means.

(z) “Profiling” means any form of automated processing of personal information, as further defined by regulations pursuant to paragraph (16) of subdivision (a) of Section 1798.185, to evaluate certain personal aspects relating to a natural person and in particular to analyze or predict aspects concerning that natural person's performance at work, economic situation, health, personal preferences, interests, reliability, behavior, location, or movements.

(aa) “Pseudonymize” or “Pseudonymization” means the processing of personal information in a manner that renders the personal information no longer attributable to a specific consumer without the use of additional information, provided that the additional information is kept separately and is subject to technical and organizational measures to ensure that the personal information is not attributed to an identified or identifiable consumer.

(ab) “Research” means scientific analysis, systematic study, and observation, including basic research or applied research that is designed to develop or contribute to public or scientific knowledge and that adheres or otherwise conforms to all other applicable ethics and privacy laws, including, but not limited to, studies conducted in the public interest in the area of public health. Research with personal information that may have been collected from a consumer in the course of the consumer's interactions with a business' service or device for other purposes shall be:

(1) Compatible with the business purpose for which the personal information was collected.

(2) Subsequently pseudonymized and deidentified, or deidentified and in the aggregate, such that the information cannot reasonably identify, relate to, describe, be capable of being associated with, or be linked, directly or indirectly, to a particular consumer, by a business.

(3) Made subject to technical safeguards that prohibit reidentification of the consumer to whom the information may pertain, other than as needed to support the research.

(4) Subject to business processes that specifically prohibit reidentification of the information, other than as needed to support the research.

(5) Made subject to business processes to prevent inadvertent release of deidentified information.

(6) Protected from any reidentification attempts.

(7) Used solely for research purposes that are compatible with the context in which the personal information was collected.

(8) Subjected by the business conducting the research to additional security controls that limit access to the research data to only those individuals as are necessary to carry out the research purpose.

(ac) “Security and integrity” means the ability of:

(1) Networks or information systems to detect security incidents that compromise the availability, authenticity, integrity, and confidentiality of stored or transmitted personal information.

(2) Businesses to detect security incidents, resist malicious, deceptive, fraudulent, or illegal actions and to help prosecute those responsible for those actions.

(3) Businesses to ensure the physical safety of natural persons.

(ad)(1) “Sell,” “selling,” “sale,” or “sold,'' means selling, renting, releasing, disclosing, disseminating, making available, transferring, or otherwise communicating orally, in writing, or by electronic or other means, a consumer's personal information by the business to a third party for monetary or other valuable consideration.

(2) For purposes of this title, a business does not sell personal information when:

(A) A consumer uses or directs the business to intentionally:

(i) Disclose personal information.

(ii) Interact with one or more third parties.

(B) The business uses or shares an identifier for a consumer who has opted out of the sale of the consumer's personal information or limited the use of the consumer's sensitive personal information for the purposes of alerting persons that the consumer has opted out of the sale of the consumer's personal information or limited the use of the consumer's sensitive personal information.

(C) The business transfers to a third party the personal information of a consumer as an asset that is part of a merger, acquisition, bankruptcy, or other transaction in which the third party assumes control of all or part of the business, provided that information is used or shared consistently with this title. If a third party materially alters how it uses or shares the personal information of a consumer in a manner that is materially inconsistent with the promises made at the time of collection, it shall provide prior notice of the new or changed practice to the consumer. The notice shall be sufficiently prominent and robust to ensure that existing consumers can easily exercise their choices consistently with this title. This subparagraph does not authorize a business to make material, retroactive privacy policy changes or make other changes in their privacy policy in a manner that would violate the Unfair and Deceptive Practices Act (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code).

(ae) “Sensitive personal information” means:

(1) Personal information that reveals:

(A) A consumer's social security, driver's license, state identification card, or passport number.

(B) A consumer's account log-in, financial account, debit card, or credit card number in combination with any required security or access code, password, or credentials allowing access to an account.

(C) A consumer's precise geolocation.

(D) A consumer's racial or ethnic origin, citizenship or immigration status, religious or philosophical beliefs, or union membership.

(E) The contents of a consumer's mail, email, and text messages unless the business is the intended recipient of the communication.

(F) A consumer's genetic data.

(2)(A) The processing of biometric information for the purpose of uniquely identifying a consumer.

(B) Personal information collected and analyzed concerning a consumer's health.

(C) Personal information collected and analyzed concerning a consumer's sex life or sexual orientation.

(3) Sensitive personal information that is “publicly available” pursuant to paragraph (2) of subdivision (v) shall not be considered sensitive personal information or personal information.

(af) “Service” or “services” means work, labor, and services, including services furnished in connection with the sale or repair of goods.

(ag)(1) “Service provider” means a person that processes personal information on behalf of a business and that receives from or on behalf of the business consumer's personal information for a business purpose pursuant to a written contract, provided that the contract prohibits the person from:

(A) Selling or sharing the personal information.

(B) Retaining, using, or disclosing the personal information for any purpose other than for the business purposes specified in the contract for the business, including retaining, using, or disclosing the personal information for a commercial purpose other than the business purposes specified in the contract with the business, or as otherwise permitted by this title.

(C) Retaining, using, or disclosing the information outside of the direct business relationship between the service provider and the business.

(D) Combining the personal information that the service provider receives from, or on behalf of, the business with personal information that it receives from, or on behalf of, another person or persons, or collects from its own interaction with the consumer, provided that the service provider may combine personal information to perform any business purpose as defined in regulations adopted pursuant to paragraph (10) of subdivision (a) of Section 1798.185, except as provided for in paragraph (6) of subdivision (e) of this section and in regulations adopted by the California Privacy Protection Agency. The contract may, subject to agreement with the service provider, permit the business to monitor the service provider's compliance with the contract through measures, including, but not limited to, ongoing manual reviews and automated scans and regular assessments, audits, or other technical and operational testing at least once every 12 months.

(2) If a service provider engages any other person to assist it in processing personal information for a business purpose on behalf of the business, or if any other person engaged by the service provider engages another person to assist in processing personal information for that business purpose, it shall notify the business of that engagement, and the engagement shall be pursuant to a written contract binding the other person to observe all the requirements set forth in paragraph (1).

(ah)(1) “Share,” “shared,” or “sharing” means sharing, renting, releasing, disclosing, disseminating, making available, transferring, or otherwise communicating orally, in writing, or by electronic or other means, a consumer's personal information by the business to a third party for cross-context behavioral advertising, whether or not for monetary or other valuable consideration, including transactions between a business and a third party for cross-context behavioral advertising for the benefit of a business in which no money is exchanged.

(2) For purposes of this title, a business does not share personal information when:

(A) A consumer uses or directs the business to intentionally disclose personal information or intentionally interact with one or more third parties.

(B) The business uses or shares an identifier for a consumer who has opted out of the sharing of the consumer's personal information or limited the use of the consumer's sensitive personal information for the purposes of alerting persons that the consumer has opted out of the sharing of the consumer's personal information or limited the use of the consumer's sensitive personal information.

(C) The business transfers to a third party the personal information of a consumer as an asset that is part of a merger, acquisition, bankruptcy, or other transaction in which the third party assumes control of all or part of the business, provided that information is used or shared consistently with this title. If a third party materially alters how it uses or shares the personal information of a consumer in a manner that is materially inconsistent with the promises made at the time of collection, it shall provide prior notice of the new or changed practice to the consumer. The notice shall be sufficiently prominent and robust to ensure that existing consumers can easily exercise their choices consistently with this title. This subparagraph does not authorize a business to make material, retroactive privacy policy changes or make other changes in their privacy policy in a manner that would violate the Unfair and Deceptive Practices Act (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code).

(ai) “Third party” means a person who is not any of the following:

(1) The business with whom the consumer intentionally interacts and that collects personal information from the consumer as part of the consumer's current interaction with the business under this title.

(2) A service provider to the business.

(3) A contractor.

(aj) “Unique identifier” or “unique personal identifier” means a persistent identifier that can be used to recognize a consumer, a family, or a device that is linked to a consumer or family, over time and across different services, including, but not limited to, a device identifier; an Internet Protocol address; cookies, beacons, pixel tags, mobile ad identifiers, or similar technology; customer number, unique pseudonym, or user alias; telephone numbers, or other forms of persistent or probabilistic identifiers that can be used to identify a particular consumer or device that is linked to a consumer or family. For purposes of this subdivision, “family” means a custodial parent or guardian and any children under 18 years of age over which the parent or guardian has custody.

(ak) “Verifiable consumer request” means a request that is made by a consumer, by a consumer on behalf of the consumer's minor child, by a natural person or a person registered with the Secretary of State, authorized by the consumer to act on the consumer's behalf, or by a person who has power of attorney or is acting as a conservator for the consumer, and that the business can verify, using commercially reasonable methods, pursuant to regulations adopted by the Attorney General pursuant to paragraph (7) of subdivision (a) of Section 1798.185 to be the consumer about whom the business has collected personal information. A business is not obligated to provide information to the consumer pursuant to Sections 1798.110 and 1798.115, to delete personal information pursuant to Section 1798.105, or to correct inaccurate personal information pursuant to Section 1798.106, if the business cannot verify, pursuant to this subdivision and regulations adopted by the Attorney General pursuant to paragraph (7) of subdivision (a) of Section 1798.185, that the consumer making the request is the consumer about whom the business has collected information or is a person authorized by the consumer to act on such consumer's behalf.

§ 1798.145. Exemptions

(a)(1) The obligations imposed on businesses by this title shall not restrict a business's ability to:

(A) Comply with federal, state, or local laws or comply with a court order or subpoena to provide information.

(B) Comply with a civil, criminal, or regulatory inquiry, investigation, subpoena, or summons by federal, state, or local authorities. Law enforcement agencies, including police and sheriff's departments, may direct a business pursuant to a law enforcement agency-approved investigation with an active case number not to delete a consumer's personal information, and, upon receipt of that direction, a business shall not delete the personal information for 90 days in order to allow the law enforcement agency to obtain a court-issued subpoena, order, or warrant to obtain a consumer's personal information. For good cause and only to the extent necessary for investigatory purposes, a law enforcement agency may direct a business not to delete the consumer's personal information for additional 90-day periods. A business that has received direction from a law enforcement agency not to delete the personal information of a consumer who has requested deletion of the consumer's personal information shall not use the consumer's personal information for any purpose other than retaining it to produce to law enforcement in response to a court-issued subpoena, order, or warrant unless the consumer's deletion request is subject to an exemption from deletion under this title.

(C) Cooperate with law enforcement agencies concerning conduct or activity that the business, service provider, or third party reasonably and in good faith believes may violate federal, state, or local law.

(D)(i) Cooperate with a government agency request for emergency access to a consumer's personal information if a natural person is at risk or danger of death or serious physical injury provided that:

(I) The request is approved by a high-ranking agency officer for emergency access to a consumer's personal information.

(II) The request is based on the agency's good faith determination that it has a lawful basis to access the information on a nonemergency basis.

(III) The agency agrees to petition a court for an appropriate order within three days and to destroy the information if that order is not granted.

(ii) For purposes of this subparagraph, a consumer accessing, procuring, or searching for services regarding contraception, pregnancy care, and perinatal care, including, but not limited to, abortion services, shall not constitute a natural person being at risk or danger of death or serious physical injury.

(E) Exercise or defend legal claims.

(F) Collect, use, retain, sell, share, or disclose consumers' personal information that is deidentified or aggregate consumer information.

(G) Collect, sell, or share a consumer's personal information if every aspect of that commercial conduct takes place wholly outside of California. For purposes of this title, commercial conduct takes place wholly outside of California if the business collected that information while the consumer was outside of California, no part of the sale of the consumer's personal information occurred in California, and no personal information collected while the consumer was in California is sold. This paragraph shall not prohibit a business from storing, including on a device, personal information about a consumer when the consumer is in California and then collecting that personal information when the consumer and stored personal information is outside of California.

(2)(A) This subdivision shall not apply if the consumer's personal information contains information related to accessing, procuring, or searching for services regarding contraception, pregnancy care, and perinatal care, including, but not limited to, abortion services.

(B) This paragraph does not alter the use of aggregated or deidentified personal information consistent with a business purpose as defined in paragraphs (1), (2), (3), (4), (5), (7), or (8) of subdivision (e) of Section 1798.140, provided that the personal information is only retained in aggregated and deidentified form and is not sold or shared.

(C) This paragraph does not alter the duty of a business to preserve or retain evidence pursuant to California or federal law in an ongoing civil proceeding.

(b) The obligations imposed on businesses by Sections 1798.110, 1798.115, 1798.120, 1798.121, 1798.130, and 1798.135 shall not apply where compliance by the business with the title would violate an evidentiary privilege under California law and shall not prevent a business from providing the personal information of a consumer to a person covered by an evidentiary privilege under California law as part of a privileged communication.

(c)(1) This title shall not apply to any of the following:

(A) Medical information governed by the Confidentiality of Medical Information Act (Part 2.6 (commencing with Section 56) of Division 1) or protected health information that is collected by a covered entity or business associate governed by the privacy, security, and breach notification rules issued by the United States Department of Health and Human Services, Parts 160 and 164 of Title 45 of the Code of Federal Regulations, established pursuant to the Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191)2 and the Health Information Technology for Economic and Clinical Health Act (Public Law 111-5).

(B) A provider of health care governed by the Confidentiality of Medical Information Act (Part 2.6 (commencing with Section 56) of Division 1) or a covered entity governed by the privacy, security, and breach notification rules issued by the United States Department of Health and Human Services, Parts 160 and 164 of Title 45 of the Code of Federal Regulations, established pursuant to the Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191), to the extent the provider or covered entity maintains patient information in the same manner as medical information or protected health information as described in subparagraph (A) of this section.

(C) Personal information collected as part of a clinical trial or other biomedical research study subject to, or conducted in accordance with, the Federal Policy for the Protection of Human Subjects, also known as the Common Rule, pursuant to good clinical practice guidelines issued by the International Council for Harmonisation or pursuant to human subject protection requirements of the United States Food and Drug Administration, provided that the information is not sold or shared in a manner not permitted by this subparagraph, and, if it is inconsistent, that participants be informed of that use and provide consent.

(2) For purposes of this subdivision, the definitions of “medical information” and “provider of health care” in Section 56.05 shall apply and the definitions of “business associate,” “covered entity,” and “protected health information” in Section 160.103 of Title 45 of the Code of Federal Regulations shall apply.

(d)(1) This title shall not apply to an activity involving the collection, maintenance, disclosure, sale, communication, or use of any personal information bearing on a consumer's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living by a consumer reporting agency, as defined in subdivision (f) of Section 1681a of Title 15 of the United States Code, by a furnisher of information, as set forth in Section 1681s-2 of Title 15 of the United States Code, who provides information for use in a consumer report, as defined in subdivision (d) of Section 1681a of Title 15 of the United States Code, and by a user of a consumer report as set forth in Section 1681b of Title 15 of the United States Code.

(2) Paragraph (1) shall apply only to the extent that such activity involving the collection, maintenance, disclosure, sale, communication, or use of such information by that agency, furnisher, or user is subject to regulation under the Fair Credit Reporting Act, Section 1681 et seq., Title 15 of the United States Code and the information is not collected, maintained, used, communicated, disclosed, or sold except as authorized by the Fair Credit Reporting Act.

(3) This subdivision shall not apply to Section 1798.150.

(e) This title shall not apply to personal information collected, processed, sold, or disclosed subject to the federal Gramm-Leach-Bliley Act (Public Law 106-102), and implementing regulations, or the California Financial Information Privacy Act (Division 1.4 (commencing with Section 4050) of the Financial Code), or the federal Farm Credit Act of 1971 (as amended in 12 U.S.C. 2001-2279cc and implementing regulations, 12 C.F.R. 600, et seq.). This subdivision shall not apply to Section 1798.150.

(f) This title shall not apply to personal information collected, processed, sold, or disclosed pursuant to the Driver's Privacy Protection Act of 1994 (18 U.S.C. Sec. 2721 et seq.). This subdivision shall not apply to Section 1798.150.

(g)(1) Section 1798.120 shall not apply to vehicle information or ownership information retained or shared between a new motor vehicle dealer, as defined in Section 426 of the Vehicle Code, and the vehicle's manufacturer, as defined in Section 672 of the Vehicle Code, if the vehicle information or ownership information is shared for the purpose of effectuating, or in anticipation of effectuating, a vehicle repair covered by a vehicle warranty or a recall conducted pursuant to Sections 30118 to 30120, inclusive, of Title 49 of the United States Code, provided that the new motor vehicle dealer or vehicle manufacturer with which that vehicle information or ownership information is shared does not sell, share, or use that information for any other purpose.

(2) Section 1798.120 shall not apply to vessel information or ownership information retained or shared between a vessel dealer and the vessel's manufacturer, as defined in Section 651 of the Harbors and Navigation Code, if the vessel information or ownership information is shared for the purpose of effectuating, or in anticipation of effectuating, a vessel repair covered by a vessel warranty or a recall conducted pursuant to Section 4310 of Title 46 of the United States Code, provided that the vessel dealer or vessel manufacturer with which that vessel information or ownership information is shared does not sell, share, or use that information for any other purpose.

(3) For purposes of this subdivision:

(A) “Ownership information” means the name or names of the registered owner or owners and the contact information for the owner or owners.

(B) “Vehicle information” means the vehicle information number, make, model, year, and odometer reading.

(C) “Vessel dealer” means a person who is engaged, wholly or in part, in the business of selling or offering for sale, buying or taking in trade for the purpose of resale, or exchanging, any vessel or vessels, as defined in Section 651 of the Harbors and Navigation Code, and receives or expects to receive money, profit, or any other thing of value.

(D) “Vessel information” means the hull identification number, model, year, month and year of production, and information describing any of the following equipment as shipped, transferred, or sold from the place of manufacture, including all attached parts and accessories:

(i) An inboard engine.

(ii) An outboard engine.

(iii) A stern drive unit.

(iv) An inflatable personal floatation device approved under Section 160.076 of Title 46 of the Code of Federal Regulations.

(h) Notwithstanding a business's obligations to respond to and honor consumer rights requests pursuant to this title:

(1) A time period for a business to respond to a consumer for any verifiable consumer request may be extended by up to a total of 90 days where necessary, taking into account the complexity and number of the requests. The business shall inform the consumer of any such extension within 45 days of receipt of the request, together with the reasons for the delay.

(2) If the business does not take action on the request of the consumer, the business shall inform the consumer, without delay and at the latest within the time period permitted of response by this section, of the reasons for not taking action and any rights the consumer may have to appeal the decision to the business.

(3) If requests from a consumer are manifestly unfounded or excessive, in particular because of their repetitive character, a business may either charge a reasonable fee, taking into account the administrative costs of providing the information or communication or taking the action requested, or refuse to act on the request and notify the consumer of the reason for refusing the request. The business shall bear the burden of demonstrating that any verifiable consumer request is manifestly unfounded or excessive.

(i)(1) A business that discloses personal information to a service provider or contractor in compliance with this title shall not be liable under this title if the service provider or contractor receiving the personal information uses it in violation of the restrictions set forth in the title, provided that, at the time of disclosing the personal information, the business does not have actual knowledge, or reason to believe, that the service provider or contractor intends to commit such a violation. A service provider or contractor shall likewise not be liable under this title for the obligations of a business for which it provides services as set forth in this title provided that the service provider or contractor shall be liable for its own violations of this title.

(2) A business that discloses personal information of a consumer, with the exception of consumers who have exercised their right to opt out of the sale or sharing of their personal information, consumers who have limited the use or disclosure of their sensitive personal information, and minor consumers who have not opted in to the collection or sale of their personal information, to a third party pursuant to a written contract that requires the third party to provide the same level of protection of the consumer's rights under this title as provided by the business shall not be liable under this title if the third party receiving the personal information uses it in violation of the restrictions set forth in this title provided that, at the time of disclosing the personal information, the business does not have actual knowledge, or reason to believe, that the third party intends to commit such a violation.

(j) This title shall not be construed to require a business, service provider, or contractor to:

(1) Reidentify or otherwise link information that, in the ordinary course of business, is not maintained in a manner that would be considered personal information.

(2) Retain any personal information about a consumer if, in the ordinary course of business, that information about the consumer would not be retained.

(3) Maintain information in identifiable, linkable, or associable form, or collect, obtain, retain, or access any data or technology, in order to be capable of linking or associating a verifiable consumer request with personal information.

(k) The rights afforded to consumers and the obligations imposed on the business in this title shall not adversely affect the rights and freedoms of other natural persons. A verifiable consumer request for specific pieces of personal information pursuant to Section 1798.110, to delete a consumer's personal information pursuant to Section 1798.105, or to correct inaccurate personal information pursuant to Section 1798.106, shall not extend to personal information about the consumer that belongs to, or the business maintains on behalf of, another natural person. A business may rely on representations made in a verifiable consumer request as to rights with respect to personal information and is under no legal requirement to seek out other persons that may have or claim to have rights to personal information, and a business is under no legal obligation under this title or any other provision of law to take any action under this title in the event of a dispute between or among persons claiming rights to personal information in the business's possession.

(l) The rights afforded to consumers and the obligations imposed on any business under this title shall not apply to the extent that they infringe on the noncommercial activities of a person or entity described in subdivision (b) of Section 2 of Article I of the California Constitution.

(m)(1) This title shall not apply to any of the following:

(A) Personal information that is collected by a business about a natural person in the course of the natural person acting as a job applicant to, an employee of, owner of, director of, officer of, medical staff member of, or independent contractor of, that business to the extent that the natural person's personal information is collected and used by the business solely within the context of the natural person's role or former role as a job applicant to, an employee of, owner of, director of, officer of, medical staff member of, or an independent contractor of, that business.

(B) Personal information that is collected by a business that is emergency contact information of the natural person acting as a job applicant to, an employee of, owner of, director of, officer of, medical staff member of, or independent contractor of, that business to the extent that the personal information is collected and used solely within the context of having an emergency contact on file.

(C) Personal information that is necessary for the business to retain to administer benefits for another natural person relating to the natural person acting as a job applicant to, an employee of, owner of, director of, officer of, medical staff member of, or independent contractor of, that business to the extent that the personal information is collected and used solely within the context of administering those benefits.

(2) For purposes of this subdivision:

(A) “Independent contractor” means a natural person who provides any service to a business pursuant to a written contract.

(B) “Director” means a natural person designated in the articles of incorporation as director, or elected by the incorporators and natural persons designated, elected, or appointed by any other name or title to act as directors, and their successors.

(C) “Medical staff member” means a licensed physician and surgeon, dentist, or podiatrist, licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code and a clinical psychologist as defined in Section 1316.5 of the Health and Safety Code.

(D) “Officer” means a natural person elected or appointed by the board of directors to manage the daily operations of a corporation, including a chief executive officer, president, secretary, or treasurer.

(E) “Owner” means a natural person who meets one of the following criteria:

(i) Has ownership of, or the power to vote, more than 50 percent of the outstanding shares of any class of voting security of a business.

(ii) Has control in any manner over the election of a majority of the directors or of individuals exercising similar functions.

(iii) Has the power to exercise a controlling influence over the management of a company.

(3) This subdivision shall not apply to subdivision (a) of Section 1798.100 or Section 1798.150.

(4) This subdivision shall become inoperative on January 1, 2023.

(n)(1) The obligations imposed on businesses by Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.121, 1798.130, and 1798.135 shall not apply to personal information reflecting a written or verbal communication or a transaction between the business and the consumer, where the consumer is a natural person who acted or is acting as an employee, owner, director, officer, or independent contractor of a company, partnership, sole proprietorship, nonprofit, or government agency and whose communications or transaction with the business occur solely within the context of the business conducting due diligence regarding, or providing or receiving a product or service to or from such company, partnership, sole proprietorship, nonprofit, or government agency.

(2) For purposes of this subdivision:

(A) “Independent contractor” means a natural person who provides any service to a business pursuant to a written contract.

(B) “Director” means a natural person designated in the articles of incorporation as such or elected by the incorporators and natural persons designated, elected, or appointed by any other name or title to act as directors, and their successors.

(C) “Officer” means a natural person elected or appointed by the board of directors to manage the daily operations of a corporation, such as a chief executive officer, president, secretary, or treasurer.

(D) “Owner” means a natural person who meets one of the following:

(i) Has ownership of, or the power to vote, more than 50 percent of the outstanding shares of any class of voting security of a business.

(ii) Has control in any manner over the election of a majority of the directors or of individuals exercising similar functions.

(iii) Has the power to exercise a controlling influence over the management of a company.

(3) This subdivision shall become inoperative on January 1, 2023.

(o)(1) Sections 1798.105 and 1798.120 shall not apply to a commercial credit reporting agency's collection, processing, sale, or disclosure of business controller information to the extent the commercial credit reporting agency uses the business controller information solely to identify the relationship of a consumer to a business that the consumer owns or contact the consumer only in the consumer's role as the owner, director, officer, or management employee of the business.

(2) For the purposes of this subdivision:

(A) “Business controller information” means the name or names of the owner or owners, director, officer, or management employee of a business and the contact information, including a business title, for the owner or owners, director, officer, or management employee.

(B) “Commercial credit reporting agency” has the meaning set forth in subdivision (b) of Section 1785.42.

(C) “Owner” means a natural person that meets one of the following:

(i) Has ownership of, or the power to vote, more than 50 percent of the outstanding shares of any class of voting security of a business.

(ii) Has control in any manner over the election of a majority of the directors or of individuals exercising similar functions.

(iii) Has the power to exercise a controlling influence over the management of a company.

(D) “Director” means a natural person designated in the articles of incorporation of a business as director, or elected by the incorporators and natural persons designated, elected, or appointed by any other name or title to act as directors, and their successors.

(E) “Officer” means a natural person elected or appointed by the board of directors of a business to manage the daily operations of a corporation, including a chief executive officer, president, secretary, or treasurer.

(F) “Management employee” means a natural person whose name and contact information is reported to or collected by a commercial credit reporting agency as the primary manager of a business and used solely within the context of the natural person's role as the primary manager of the business.

(p) The obligations imposed on businesses in Sections 1798.105, 1798.106, 1798.110, and 1798.115 shall not apply to household data.

(q)(1) This title does not require a business to comply with a verifiable consumer request to delete a consumer's personal information under Section 1798.105 to the extent the verifiable consumer request applies to a student's grades, educational scores, or educational test results that the business holds on behalf of a local educational agency, as defined in subdivision (d) of Section 49073.1 of the Education Code, at which the student is currently enrolled. If a business does not comply with a request pursuant to this section, it shall notify the consumer that it is acting pursuant to this exception.

(2) This title does not require, in response to a request pursuant to Section 1798.110, that a business disclose on educational standardized assessment or educational assessment or a consumer's specific responses to the educational standardized assessment or educational assessment if consumer access, possession, or control would jeopardize the validity and reliability of that educational standardized assessment or educational assessment. If a business does not comply with a request pursuant to this section, it shall notify the consumer that it is acting pursuant to this exception.

(3) For purposes of this subdivision:

(A) “Educational standardized assessment or educational assessment” means a standardized or nonstandardized quiz, test, or other assessment used to evaluate students in or for entry to kindergarten and grades 1 to 12, inclusive, schools, postsecondary institutions, vocational programs, and postgraduate programs that are accredited by an accrediting agency or organization recognized by the State of California or the United States Department of Education, as well as certification and licensure examinations used to determine competency and eligibility to receive certification or licensure from a government agency or government certification body.

(B) “Jeopardize the validity and reliability of that educational standardized assessment or educational assessment” means releasing information that would provide an advantage to the consumer who has submitted a verifiable consumer request or to another natural person.

(r) Sections 1798.105 and 1798.120 shall not apply to a business's use, disclosure, or sale of particular pieces of a consumer's personal information if the consumer has consented to the business's use, disclosure, or sale of that information to produce a physical item, including a school yearbook containing the consumer's photograph if:

(1) The business has incurred significant expense in reliance on the consumer's consent.

(2) Compliance with the consumer's request to opt out of the sale of the consumer's personal information or to delete the consumer's personal information would not be commercially reasonable.

(3) The business complies with the consumer's request as soon as it is commercially reasonable to do so.

§ 1798.146. Collection of confidential medical information; protected health information; covered entity or business governed by federal law

(a) This title shall not apply to any of the following:

(1) Medical information governed by the Confidentiality of Medical Information Act (Part 2.6 (commencing with Section 56) of Division 1) or protected health information that is collected by a covered entity or business associate governed by the privacy, security, and breach notification rules issued by the United States Department of Health and Human Services, Parts 160 and 164 of Title 45 of the Code of Federal Regulations, established pursuant to the federal Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191)1 and the federal Health Information Technology for Economic and Clinical Health Act, Title XIII of the federal American Recovery and Reinvestment Act of 2009 (Public Law 111-5).

(2) A provider of health care governed by the Confidentiality of Medical Information Act (Part 2.6 (commencing with Section 56) of Division 1) or a covered entity governed by the privacy, security, and breach notification rules issued by the United States Department of Health and Human Services, Parts 160 and 164 of Title 45 of the Code of Federal Regulations, established pursuant to the federal Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191), to the extent the provider or covered entity maintains, uses, and discloses patient information in the same manner as medical information or protected health information as described in paragraph (1).

(3) A business associate of a covered entity governed by the privacy, security, and data breach notification rules issued by the United States Department of Health and Human Services, Parts 160 and 164 of Title 45 of the Code of Federal Regulations, established pursuant to the federal Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191) and the federal Health Information Technology for Economic and Clinical Health Act, Title XIII of the federal American Recovery and Reinvestment Act of 2009 (Public Law 111-5), to the extent that the business associate maintains, uses, and discloses patient information in the same manner as medical information or protected health information as described in paragraph (1).

(4)      (A) Information that meets both of the following conditions:

(i) It is deidentified in accordance with the requirements for deidentification set forth in Section 164.514 of Part 164 of Title 45 of the Code of Federal Regulations.

(ii) It is derived from patient information that was originally collected, created, transmitted, or maintained by an entity regulated by the Health Insurance Portability and Accountability Act, the Confidentiality Of Medical Information Act, or the Federal Policy for the Protection of Human Subjects, also known as the Common Rule.

(B) Information that met the requirements of subparagraph (A) but is subsequently reidentified shall no longer be eligible for the exemption in this paragraph, and shall be subject to applicable federal and state data privacy and security laws, including, but not limited to, the Health Insurance Portability and Accountability Act, the Confidentiality Of Medical Information Act, and this title.

(5) Information that is collected, used, or disclosed in research, as defined in Section 164.501 of Title 45 of the Code of Federal Regulations, including, but not limited to, a clinical trial, and that is conducted in accordance with applicable ethics, confidentiality, privacy, and security rules of Part 164 of Title 45 of the Code of Federal Regulations, the Federal Policy for the Protection of Human Subjects, also known as the Common Rule, good clinical practice guidelines issued by the International Council for Harmonisation, or human subject protection requirements of the United States Food and Drug Administration.

(b) For purposes of this section, all of the following shall apply:

(1) “Business associate” has the same meaning as defined in Section 160.103 of Title 45 of the Code of Federal Regulations.

(2) “Covered entity” has the same meaning as defined in Section 160.103 of Title 45 of the Code of Federal Regulations.

(3) “Identifiable private information” has the same meaning as defined in Section 46.102 of Title 45 of the Code of Federal Regulations.

(4) “Individually identifiable health information” has the same meaning as defined in Section 160.103 of Title 45 of the Code of Federal Regulations.

(5) “Medical information” has the same meaning as defined in Section 56.05.

(6) “Patient information” shall mean identifiable private information, protected health information, individually identifiable health information, or medical information.

(7) “Protected health information” has the same meaning as defined in Section 160.103 of Title 45 of the Code of Federal Regulations.

(8) “Provider of health care” has the same meaning as defined in Section 56.05.

§ 1798.148. Reidentification of confidential medical information; exceptions

a) A business or other person shall not reidentify, or attempt to reidentify, information that has met the requirements of paragraph (4) of subdivision (a) of Section 1798.146, except for one or more of the following purposes:

(1) Treatment, payment, or health care operations conducted by a covered entity or business associate acting on behalf of, and at the written direction of, the covered entity. For purposes of this paragraph, “treatment,” “payment,” “health care operations,” covered entity,” and “business associate” have the same meaning as defined in Section 164.501 of Title 45 of the Code of Federal Regulations.

(2) Public health activities or purposes as described in Section 164.512 of Title 45 of the Code of Federal Regulations.

(3) Research, as defined in Section 164.501 of Title 45 of the Code of Federal Regulations, that is conducted in accordance with Part 46 of Title 45 of the Code of Federal Regulations, the Federal Policy for the Protection of Human Subjects, also known as the Common Rule.

(4) Pursuant to a contract where the lawful holder of the deidentified information that met the requirements of paragraph (4) of subdivision (a) of Section 1798.146 expressly engages a person or entity to attempt to reidentify the deidentified information in order to conduct testing, analysis, or validation of deidentification, or related statistical techniques, if the contract bans any other use or disclosure of the reidentified information and requires the return or destruction of the information that was reidentified upon completion of the contract.

(5) If otherwise required by law.

(b) In accordance with paragraph (4) of subdivision (a) of Section 1798.146, information reidentified pursuant this section shall be subject to applicable federal and state data privacy and security laws including, but not limited to, the Health Insurance Portability and Accountability Act, the Confidentiality of Medical Information Act, and this title.

(c) Beginning January 1, 2021, any contract for the sale or license of deidentified information that has met the requirements of paragraph (4) of subdivision (a) of Section 1798.146, where one of the parties is a person residing or doing business in the state, shall include the following, or substantially similar, provisions:

(1) A statement that the deidentified information being sold or licensed includes deidentified patient information.

(2) A statement that reidentification, and attempted reidentification, of the deidentified information by the purchaser or licensee of the information is prohibited pursuant to this section.

(3) A requirement that, unless otherwise required by law, the purchaser or licensee of the deidentified information may not further disclose the deidentified information to any third party unless the third party is contractually bound by the same or stricter restrictions and conditions.

(d) For purposes of this section, “reidentify” means the process of reversal of deidentification techniques, including, but not limited to, the addition of specific pieces of information or data elements that can, individually or in combination, be used to uniquely identify an individual or usage of any statistical method, contrivance, computer software, or other means that have the effect of associating deidentified information with a specific identifiable individual.

§ 1798.150. Personal Information Security Breaches

(a)(1) Any consumer whose nonencrypted and nonredacted personal information, as defined in subparagraph (A) of paragraph (1) of subdivision (d) of Section 1798.81.5, or whose email address in combination with a password or security question and answer that would permit access to the account is subject to an unauthorized access and exfiltration, theft, or disclosure as a result of the business's violation of the duty to implement and maintain reasonable security procedures and practices appropriate to the nature of the information to protect the personal information may institute a civil action for any of the following:

(A) To recover damages in an amount not less than one hundred dollars ($100) and not greater than seven hundred and fifty ($750) per consumer per incident or actual damages, whichever is greater.

(B) Injunctive or declaratory relief.

(C) Any other relief the court deems proper.

(2) In assessing the amount of statutory damages, the court shall consider any one or more of the relevant circumstances presented by any of the parties to the case, including, but not limited to, the nature and seriousness of the misconduct, the number of violations, the persistence of the misconduct, the length of time over which the misconduct occurred, the willfulness of the defendant's misconduct, and the defendant's assets, liabilities, and net worth.

(b) Actions pursuant to this section may be brought by a consumer if, prior to initiating any action against a business for statutory damages on an individual or class-wide basis, a consumer provides a business 30 days' written notice identifying the specific provisions of this title the consumer alleges have been or are being violated. In the event a cure is possible, if within the 30 days the business actually cures the noticed violation and provides the consumer an express written statement that the violations have been cured and that no further violations shall occur, no action for individual statutory damages or class-wide statutory damages may be initiated against the business. The implementation and maintenance of reasonable security procedures and practices pursuant to Section 1798.81.5 following a breach does not constitute a cure with respect to that breach. No notice shall be required prior to an individual consumer initiating an action solely for actual pecuniary damages suffered as a result of the alleged violations of this title. If a business continues to violate this title in breach of the express written statement provided to the consumer under this section, the consumer may initiate an action against the business to enforce the written statement and may pursue statutory damages for each breach of the express written statement, as well as any other violation of the title that postdates the written statement.

(c) The cause of action established by this section shall apply only to violations as defined in subdivision (a) and shall not be based on violations of any other section of this title. Nothing in this title shall be interpreted to serve as the basis for a private right of action under any other law. This shall not be construed to relieve any party from any duties or obligations imposed under other law or the United States or California Constitution.

§ 1798.155. Administrative Enforcement

(a) Any business, service provider, contractor, or other person that violates this title shall be liable for an administrative fine of not more than two thousand five hundred dollars ($2,500) for each violation or seven thousand five hundred dollars ($7,500) for each intentional violation or violations involving the personal information of consumers whom the business, service provider, contractor, or other person has actual knowledge are under 16 years of age, as adjusted pursuant to paragraph (5) of subdivision (a) of Section 1798.185, in an administrative enforcement action brought by the California Privacy Protection Agency.

(b) Any administrative fine assessed for a violation of this title, and the proceeds of any settlement of an action brought pursuant to subdivision (a), shall be deposited in the Consumer Privacy Fund, created within the General Fund pursuant to subdivision (a) of Section 1798.160 with the intent to fully offset any costs incurred by the state courts, the Attorney General, and the California Privacy Protection Agency in connection with this title.

§ 1798.160. Consumer Privacy Fund

(a) A special fund to be known as the “Consumer Privacy Fund” is hereby created within the General Fund in the State Treasury, and is available upon appropriation by the Legislature first to offset any costs incurred by the state courts in connection with actions brought to enforce this title, the costs incurred by the Attorney General in carrying out the Attorney General's duties under this title, and then for the purposes of establishing an investment fund in the State Treasury, with any earnings or interest from the fund to be deposited in the General Fund, and making grants to promote and protect consumer privacy, educate children in the area of online privacy, and fund cooperative programs with international law enforcement organizations to combat fraudulent activities with respect to consumer data breaches.

(b) Funds transferred to the Consumer Privacy Fund shall be used exclusively as follows:

(1) To offset any costs incurred by the state courts and the Attorney General in connection with this title.

(2) After satisfying the obligations under paragraph (1), the remaining funds shall be allocated each fiscal year as follows:

(A) Ninety-one percent shall be invested by the Treasurer in financial assets with the goal of maximizing long term yields consistent with a prudent level of risk. The principal shall not be subject to transfer or appropriation, provided that any interest and earnings shall be transferred on an annual basis to the General Fund for appropriation by the Legislature for General Fund purposes.

(B) Nine percent shall be made available to the California Privacy Protection Agency for the purposes of making grants in California, with 3 percent allocated to each of the following grant recipients:

(i) Nonprofit organizations to promote and protect consumer privacy.

(ii) Nonprofit organizations and public agencies, including school districts, to educate children in the area of online privacy.

(iii) State and local law enforcement agencies to fund cooperative programs with international law enforcement organizations to combat fraudulent activities with respect to consumer data breaches.

(c) Funds in the Consumer Privacy Fund shall not be subject to appropriation or transfer by the Legislature for any other purpose.

§ 1798.175. Conflicting Provisions

This title is intended to further the constitutional right of privacy and to supplement existing laws relating to consumers' personal information, including, but not limited to, Chapter 22 (commencing with Section 22575) of Division 8 of the Business and Professions Code and Title 1.81 (commencing with Section 1798.80). The provisions of this title are not limited to information collected electronically or over the Internet, but apply to the collection and sale of all personal information collected by a business from consumers. Wherever possible, law relating to consumers' personal information should be construed to harmonize with the provisions of this title, but in the event of a conflict between other laws and the provisions of this title, the provisions of the law that afford the greatest protection for the right of privacy for consumers shall control.

§ 1798.180. Preemption

This title is a matter of statewide concern and supersedes and preempts all rules, regulations, codes, ordinances, and other laws adopted by a city, county, city and county, municipality, or local agency regarding the collection and sale of consumers' personal information by a business.

§ 1798.185. Regulations

(a) On or before July 1, 2020, the Attorney General shall solicit broad public participation and adopt regulations to further the purposes of this title, including, but not limited to, the following areas:

(1) Updating or adding categories of personal information to those enumerated in subdivision (c) of Section 1798.130 and subdivision (v) of Section 1798.140, and updating or adding categories of sensitive personal information to those enumerated in subdivision (ae) of Section 1798.140 in order to address changes in technology, data collection practices, obstacles to implementation, and privacy concerns.

(2) Updating as needed the definitions of “deidentified” and “unique identifier” to address changes in technology, data collection, obstacles to implementation, and privacy concerns, and adding, modifying, or deleting categories to the definition of designated methods for submitting requests to facilitate a consumer's ability to obtain information from a business pursuant to Section 1798.130. The authority to update the definition of “deidentified” shall not apply to deidentification standards set forth in Section 164.514 of Title 45 of the Code of Federal Regulations, where such information previously was “protected health information” as defined in Section 160.103 of Title 45 of the Code of Federal Regulations.

(3) Establishing any exceptions necessary to comply with state or federal law, including, but not limited to, those relating to trade secrets and intellectual property rights, within one year of passage of this title and as needed thereafter, with the intention that trade secrets should not be disclosed in response to a verifiable consumer request.

(4) Establishing rules and procedures for the following:

(A) To facilitate and govern the submission of a request by a consumer to opt out of the sale or sharing of personal information pursuant to Section 1798.120 and to limit the use of a consumer's sensitive personal information pursuant to Section 1798.121 to ensure that consumers have the ability to exercise their choices without undue burden and to prevent business from engaging in deceptive or harassing conduct, including in retaliation against consumers for exercising their rights, while allowing businesses to inform consumers of the consequences of their decision to opt out of the sale or sharing of their personal information or to limit the use of their sensitive personal information.

(B) To govern business compliance with a consumer's opt-out request.

(C) For the development and use of a recognizable and uniform opt-out logo or button by all businesses to promote consumer awareness of the opportunity to opt out of the sale of personal information.

(5) Adjusting the monetary thresholds, in January of every odd-numbered year to reflect any increase in the Consumer Price Index, in: subparagraph (A) of paragraph (1) of subdivision (d) of Section 1798.140; subparagraph (A) of paragraph (1) of subdivision (a) of Section 1798.150; subdivision (a) of Section 1798.155; Section 1798.199.25; and subdivision (a) of Section 1798.199.90.

(6) Establishing rules, procedures, and any exceptions necessary to ensure that the notices and information that businesses are required to provide pursuant to this title are provided in a manner that may be easily understood by the average consumer, are accessible to consumers with disabilities, and are available in the language primarily used to interact with the consumer, including establishing rules and guidelines regarding financial incentives within one year of passage of this title and as needed thereafter.

(7) Establishing rules and procedures to further the purposes of Sections 1798.105, 1798.106, 1798.110, and 1798.115 and to facilitate a consumer's or the consumer's authorized agent's ability to delete personal information, correct inaccurate personal information pursuant to Section 1798.106, or obtain information pursuant to Section 1798.130, with the goal of minimizing the administrative burden on consumers, taking into account available technology, security concerns, and the burden on the business, to govern a business's determination that a request for information received from a consumer is a verifiable consumer request, including treating a request submitted through a password-protected account maintained by the consumer with the business while the consumer is logged into the account as a verifiable consumer request and providing a mechanism for a consumer who does not maintain an account with the business to request information through the business's authentication of the consumer's identity, within one year of passage of this title and as needed thereafter.

(8) Establishing how often, and under what circumstances, a consumer may request a correction pursuant to Section 1798.106, including standards governing the following:

(A) How a business responds to a request for correction, including exceptions for requests to which a response is impossible or would involve disproportionate effort, and requests for correction of accurate information.

(B) How concerns regarding the accuracy of the information may be resolved.

(C) The steps a business may take to prevent fraud.

(D) If a business rejects a request to correct personal information collected and analyzed concerning a consumer's health, the right of a consumer to provide a written addendum to the business with respect to any item or statement regarding any such personal information that the consumer believes to be incomplete or incorrect. The addendum shall be limited to 250 words per alleged incomplete or incorrect item and shall clearly indicate in writing that the consumer requests the addendum to be made a part of the consumer's record.

(9) Establishing the standard to govern a business's determination, pursuant to subparagraph (B) of paragraph (2) of subdivision (a) of Section 1798.130, that providing information beyond the 12-month period in a response to a verifiable consumer request is impossible or would involve a disproportionate effort.

(10) Issuing regulations further defining and adding to the business purposes, including other notified purposes, for which businesses, service providers, and contractors may use consumers' personal information consistent with consumers' expectations, and further defining the business purposes for which service providers and contractors may combine consumers' personal information obtained from different sources, except as provided for in paragraph (6) of subdivision (e) of Section 1798.140.

(11) Issuing regulations identifying those business purposes, including other notified purposes, for which service providers and contractors may use consumers' personal information received pursuant to a written contract with a business, for the service provider or contractor's own business purposes, with the goal of maximizing consumer privacy.

(12) Issuing regulations to further define “intentionally interacts,” with the goal of maximizing consumer privacy.

(13) Issuing regulations to further define “precise geolocation,” including if the size defined is not sufficient to protect consumer privacy in sparsely populated areas or when the personal information is used for normal operational purposes, including billing.

(14) Issuing regulations to define the term “specific pieces of information obtained from the consumer” with the goal of maximizing a consumer's right to access relevant personal information while minimizing the delivery of information to a consumer that would not be useful to the consumer, including system log information and other technical data. For delivery of the most sensitive personal information, the regulations may require a higher standard of authentication provided that the agency shall monitor the impact of the higher standard on the right of consumers to obtain their personal information to ensure that the requirements of verification do not result in the unreasonable denial of verifiable consumer requests.

(15) Issuing regulations requiring businesses whose processing of consumers' personal information presents significant risk to consumers' privacy or security, to:

(A) Perform a cybersecurity audit on an annual basis, including defining the scope of the audit and establishing a process to ensure that audits are thorough and independent. The factors to be considered in determining when processing may result in significant risk to the security of personal information shall include the size and complexity of the business and the nature and scope of processing activities.

(B) Submit to the California Privacy Protection Agency on a regular basis a risk assessment with respect to their processing of personal information, including whether the processing involves sensitive personal information, and identifying and weighing the benefits resulting from the processing to the business, the consumer, other stakeholders, and the public, against the potential risks to the rights of the consumer associated with that processing, with the goal of restricting or prohibiting the processing if the risks to privacy of the consumer outweigh the benefits resulting from processing to the consumer, the business, other stakeholders, and the public. Nothing in this section shall require a business to divulge trade secrets.

(16) Issuing regulations governing access and opt-out rights with respect to businesses' use of automated decisionmaking technology, including profiling and requiring businesses' response to access requests to include meaningful information about the logic involved in those decisionmaking processes, as well as a description of the likely outcome of the process with respect to the consumer.

(17) Issuing regulations to further define a “law enforcement agency-approved investigation” for purposes of the exception in subparagraph (B) of paragraph (1) of subdivision (a) of Section 1798.145.

(18) Issuing regulations to define the scope and process for the exercise of the agency's audit authority, to establish criteria for selection of persons to audit, and to protect consumers' personal information from disclosure to an auditor in the absence of a court order, warrant, or subpoena.

(19)      (A) Issuing regulations to define the requirements and technical specifications for an opt-out preference signal sent by a platform, technology, or mechanism, to indicate a consumer's intent to opt out of the sale or sharing of the consumer's personal information and to limit the use or disclosure of the consumer's sensitive personal information. The requirements and specifications for the opt-out preference signal should be updated from time to time to reflect the means by which consumers interact with businesses, and should:

(i) Ensure that the manufacturer of a platform or browser or device that sends the opt-out preference signal cannot unfairly disadvantage another business.

(ii) Ensure that the opt-out preference signal is consumer-friendly, clearly described, and easy to use by an average consumer and does not require that the consumer provide additional information beyond what is necessary.

(iii) Clearly represent a consumer's intent and be free of defaults constraining or presupposing that intent.

(iv) Ensure that the opt-out preference signal does not conflict with other commonly used privacy settings or tools that consumers may employ.

(v) Provide a mechanism for the consumer to selectively consent to a business's sale of the consumer's personal information, or the use or disclosure of the consumer's sensitive personal information, without affecting the consumer's preferences with respect to other businesses or disabling the opt-out preference signal globally.

(vi) State that in the case of a page or setting view that the consumer accesses to set the opt-out preference signal, the consumer should see up to three choices, including:

(I) Global opt out from sale and sharing of personal information, including a direction to limit the use of sensitive personal information.

(II) Choice to “Limit the Use of My Sensitive Personal Information.”

(III) Choice titled “Do Not Sell/Do Not Share My Personal Information for Cross-Context Behavioral Advertising.”

(B) Issuing regulations to establish technical specifications for an opt-out preference signal that allows the consumer, or the consumer's parent or guardian, to specify that the consumer is less than 13 years of age or at least 13 years of age and less than 16 years of age.

(C) Issuing regulations, with the goal of strengthening consumer privacy while considering the legitimate operational interests of businesses, to govern the use or disclosure of a consumer's sensitive personal information, notwithstanding the consumer's direction to limit the use or disclosure of the consumer's sensitive personal information, including:

(i) Determining any additional purposes for which a business may use or disclose a consumer's sensitive personal information.

(ii) Determining the scope of activities permitted under paragraph (8) of subdivision (e) of Section 1798.140, as authorized by subdivision (a) of Section 1798.121, to ensure that the activities do not involve health-related research.

(iii) Ensuring the functionality of the business's operations.

(iv) Ensuring that the exemption in subdivision (d) of Section 1798.121 for sensitive personal information applies to information that is collected or processed incidentally, or without the purpose of inferring characteristics about a consumer, while ensuring that businesses do not use the exemption for the purpose of evading consumers' rights to limit the use and disclosure of their sensitive personal information under Section 1798.121.

(20) Issuing regulations to govern how a business that has elected to comply with subdivision (b) of Section 1798.135 responds to the opt-out preference signal and provides consumers with the opportunity subsequently to consent to the sale or sharing of their personal information or the use and disclosure of their sensitive personal information for purposes in addition to those authorized by subdivision (a) of Section 1798.121. The regulations should:

(A) Strive to promote competition and consumer choice and be technology neutral.

(B) Ensure that the business does not respond to an opt-out preference signal by:

(i) Intentionally degrading the functionality of the consumer experience.

(ii) Charging the consumer a fee in response to the consumer's opt-out preferences.

(iii) Making any products or services not function properly or fully for the consumer, as compared to consumers who do not use the opt-out preference signal.

(iv) Attempting to coerce the consumer to opt in to the sale or sharing of the consumer's personal information, or the use or disclosure of the consumer's sensitive personal information, by stating or implying that the use of the opt-out preference signal will adversely affect the consumer as compared to consumers who do not use the opt-out preference signal, including stating or implying that the consumer will not be able to use the business's products or services or that those products or services may not function properly or fully.

(v) Displaying any notification or pop-up in response to the consumer's opt-out preference signal.

(C) Ensure that any link to a web page or its supporting content that allows the consumer to consent to opt in:

(i) Is not part of a popup, notice, banner, or other intrusive design that obscures any part of the web page the consumer intended to visit from full view or that interferes with or impedes in any way the consumer's experience visiting or browsing the web page or website the consumer intended to visit.

(ii) Does not require or imply that the consumer must click the link to receive full functionality of any products or services, including the website.

(iii) Does not make use of any dark patterns.

(iv) Applies only to the business with which the consumer intends to interact.

(D) Strive to curb coercive or deceptive practices in response to an opt-out preference signal but should not unduly restrict businesses that are trying in good faith to comply with Section 1798.135.

(21) Review existing Insurance Code provisions and regulations relating to consumer privacy, except those relating to insurance rates or pricing, to determine whether any provisions of the Insurance Code provide greater protection to consumers than the provisions of this title. Upon completing its review, the agency shall adopt a regulation that applies only the more protective provisions of this title to insurance companies. For the purpose of clarity, the Insurance Commissioner shall have jurisdiction over insurance rates and pricing.

(22) Harmonizing the regulations governing opt-out mechanisms, notices to consumers, and other operational mechanisms in this title to promote clarity and the functionality of this title for consumers.

(b) The Attorney General may adopt additional regulations as necessary to further the purposes of this title.

(c) The Attorney General shall not bring an enforcement action under this title until six months after the publication of the final regulations issued pursuant to this section or July 1, 2020, whichever is sooner.

(d) Notwithstanding subdivision (a), the timeline for adopting final regulations required by the act adding this subdivision shall be July 1, 2022. Beginning the later of July 1, 2021, or six months after the agency provides notice to the Attorney General that it is prepared to begin rulemaking under this title, the authority assigned to the Attorney General to adopt regulations under this section shall be exercised by the California Privacy Protection Agency. Notwithstanding any other law, civil and administrative enforcement of the provisions of law added or amended by this act shall not commence until July 1, 2023, and shall only apply to violations occurring on or after that date. Enforcement of provisions of law contained in the California Consumer Privacy Act of 2018 amended by this act shall remain in effect and shall be enforceable until the same provisions of this act become enforceable.

§ 1798.190. Anti-Avoidance

A court or the agency shall disregard the intermediate steps or transactions for purposes of effectuating the purposes of this title:

(a) If a series of steps or transactions were component parts of a single transaction intended from the beginning to be taken with the intention of avoiding the reach of this title, including the disclosure of information by a business to a third party in order to avoid the definition of sell or share.

(b) If steps or transactions were taken to purposely avoid the definition of sell or share by eliminating any monetary or other valuable consideration, including by entering into contracts that do not include an exchange for monetary or other valuable consideration, but where a party is obtaining something of value or use.

§ 1798.192. Waiver

Any provision of a contract or agreement of any kind, including a representative action waiver, that purports to waive or limit in any way rights under this title, including, but not limited to, any right to a remedy or means of enforcement, shall be deemed contrary to public policy and shall be void and unenforceable. This section shall not prevent a consumer from declining to request information from a business, declining to opt out of a business's sale of the consumer's personal information, or authorizing a business to sell or share the consumer's personal information after previously opting out.

§ 1798.194.

Liberal construction of title This title shall be liberally construed to effectuate its purposes.

§ 1798.196. Construction with federal law, United States Constitution, and California Constitution

This title is intended to supplement federal and state law, if permissible, but shall not apply if such application is preempted by, or in conflict with, federal law or the United States or California Constitution.

§ 1798.198. Operative date of title

(a) Subject to limitation provided in subdivision (b), and in Section 1798.199, this title shall be operative January 1, 2020.

(b) This title shall become operative only if initiative measure No. 17-0039, The Consumer Right to Privacy Act of 2018, is withdrawn from the ballot pursuant to Section 9604 of the Elections Code.

§ 1798.199. Operative date of Section 1798.180

Notwithstanding Section 1798.198, Section 1798.180 shall be operative on the effective date of the act adding this section.

§ 1798.199.10. California Privacy Protection Agency; establishment; appointments

(a) There is hereby established in state government the California Privacy Protection Agency, which is vested with full administrative power, authority, and jurisdiction to implement and enforce the California Consumer Privacy Act of 2018. The agency shall be governed by a five-member board, including the chairperson. The chairperson and one member of the board shall be appointed by the Governor. The Attorney General, Senate Rules Committee, and Speaker of the Assembly shall each appoint one member. These appointments should be made from among Californians with expertise in the areas of privacy, technology, and consumer rights.

(b) The initial appointments to the agency shall be made within 90 days of the effective date of the act adding this section.

§ 1798.199.15. Members of the board; qualifications; conduct

Members of the agency board shall:

(a) Have qualifications, experience, and skills, in particular in the areas of privacy and technology, required to perform the duties of the agency and exercise its powers.

(b) Maintain the confidentiality of information which has come to their knowledge in the course of the performance of their tasks or exercise of their powers, except to the extent that disclosure is required by the Public Records Act.

(c) Remain free from external influence, whether direct or indirect, and shall neither seek nor take instructions from another.

(d) Refrain from any action incompatible with their duties and engaging in any incompatible occupation, whether gainful or not, during their term.

(e) Have the right of access to all information made available by the agency to the chairperson.

(f) Be precluded, for a period of one year after leaving office, from accepting employment with a business that was subject to an enforcement action or civil action under this title during the member's tenure or during the five-year period preceding the member's appointment.

(g) Be precluded for a period of two years after leaving office from acting, for compensation, as an agent or attorney for, or otherwise representing, any other person in a matter pending before the agency if the purpose is to influence an action of the agency.

§ 1798.199.20. Duration of service

Members of the agency board, including the chairperson, shall serve at the pleasure of their appointing authority but shall serve for no longer than eight consecutive years.

§ 1798.199.25. Compensation

The agency board shall appoint an executive director who shall act in accordance with agency policies and regulations and with applicable law. The agency shall appoint and discharge officers, counsel, and employees, consistent with applicable civil service laws, and shall fix the compensation of employees and prescribe their duties. The agency may contract for services that cannot be provided by its employees.

§ 1798.199.30. Executive director; officers, counsel, and employees

The agency board shall appoint an executive director who shall act in accordance with agency policies and regulations and with applicable law. The agency shall appoint and discharge officers, counsel, and employees, consistent with applicable civil service laws, and shall fix the compensation of employees and prescribe their duties. The agency may contract for services that cannot be provided by its employees.

§ 1798.199.35. Delegation of authority

The agency board may delegate authority to the chairperson or the executive director to act in the name of the agency between meetings of the agency, except with respect to resolution of enforcement actions and rulemaking authority.

§ 1798.199.40. Functions of agency

The agency shall perform the following functions:

(a) Administer, implement, and enforce through administrative actions this title.

(b) On and after the later of July 1, 2021, or within six months of the agency providing the Attorney General with notice that it is prepared to assume rulemaking responsibilities under this title, adopt, amend, and rescind regulations pursuant to Section 1798.185 to carry out the purposes and provisions of the California Consumer Privacy Act of 2018, including regulations specifying recordkeeping requirements for businesses to ensure compliance with this title.

(c) Through the implementation of this title, protect the fundamental privacy rights of natural persons with respect to the use of their personal information.

(d) Promote public awareness and understanding of the risks, rules, responsibilities, safeguards, and rights in relation to the collection, use, sale, and disclosure of personal information, including the rights of minors with respect to their own information, and provide a public report summarizing the risk assessments filed with the agency pursuant to paragraph (15) of subdivision (a) of Section 1798.185 while ensuring that data security is not compromised.

(e) Provide guidance to consumers regarding their rights under this title.

(f) Provide guidance to businesses regarding their duties and responsibilities under this title and appoint a Chief Privacy Auditor to conduct audits of businesses to ensure compliance with this title pursuant to regulations adopted pursuant to paragraph (18) of subdivision (a) of Section 1798.185.

(g) Provide technical assistance and advice to the Legislature, upon request, with respect to privacy-related legislation.

(h) Monitor relevant developments relating to the protection of personal information and, in particular, the development of information and communication technologies and commercial practices.

(i) Cooperate with other agencies with jurisdiction over privacy laws and with data processing authorities in California, other states, territories, and countries to ensure consistent application of privacy protections.

(j) Establish a mechanism pursuant to which persons doing business in California that do not meet the definition of business set forth in paragraph (1), (2), or (3) of subdivision (d) of Section 1798.140 may voluntarily certify that they are in compliance with this title, as set forth in paragraph (4) of subdivision (d) of Section 1798.140, and make a list of those entities available to the public.

(k) Solicit, review, and approve applications for grants to the extent funds are available pursuant to paragraph (2) of subdivision (b) of Section 1798.160.

(l) Perform all other acts necessary or appropriate in the exercise of its power, authority, and jurisdiction and seek to balance the goals of strengthening consumer privacy while giving attention to the impact on businesses.

§ 1798.199.45. Investigation of possible violations; considerations

(a) Upon the sworn complaint of any person or on its own initiative, the agency may investigate possible violations of this title relating to any business, service provider, contractor, or person. The agency may decide not to investigate a complaint or decide to provide a business with a time period to cure the alleged violation. In making a decision not to investigate or provide more time to cure, the agency may consider the following:

(1) Lack of intent to violate this title.

(2) Voluntary efforts undertaken by the business, service provider, contractor, or person to cure the alleged violation prior to being notified by the agency of the complaint.

(b) The agency shall notify in writing the person who made the complaint of the action, if any, the agency has taken or plans to take on the complaint, together with the reasons for that action or nonaction.

§ 1798.199.50. Consideration of probable cause; notice to alleged violator

No finding of probable cause to believe this title has been violated shall be made by the agency unless, at least 30 days prior to the agency's consideration of the alleged violation, the business, service provider, contractor, or person alleged to have violated this title is notified of the violation by service of process or registered mail with return receipt requested, provided with a summary of the evidence, and informed of their right to be present in person and represented by counsel at any proceeding of the agency held for the purpose of considering whether probable cause exists for believing the person violated this title. Notice to the alleged violator shall be deemed made on the date of service, the date the registered mail receipt is signed, or if the registered mail receipt is not signed, the date returned by the post office. A proceeding held for the purpose of considering probable cause shall be private unless the alleged violator files with the agency a written request that the proceeding be public.

§ 1798.199.55. Determination of probable cause; notice and hearing; issuance of order; joint and several liability

(a) When the agency determines there is probable cause for believing this title has been violated, it shall hold a hearing to determine if a violation has or violations have occurred. Notice shall be given and the hearing conducted in accordance with the Administrative Procedure Act (Chapter 5 (commencing with Section 11500), Part 1, Division 3, Title 2, Government Code). The agency shall have all the powers granted by that chapter. If the agency determines on the basis of the hearing conducted pursuant to this subdivision that a violation or violations have occurred, it shall issue an order that may require the violator to do all or any of the following:

(1) Cease and desist violation of this title.

(2) Subject to Section 1798.155, pay an administrative fine of up to two thousand five hundred dollars ($2,500) for each violation, or up to seven thousand five hundred dollars ($7,500) for each intentional violation and each violation involving the personal information of minor consumers to the Consumer Privacy Fund within the General Fund of the state. When the agency determines that no violation has occurred, it shall publish a declaration so stating.

(b) If two or more persons are responsible for any violation or violations, they shall be jointly and severally liable.

§ 1798.199.60. Rejection of decision of administrative law judge; written statement of reasons

Whenever the agency rejects the decision of an administrative law judge made pursuant to Section 11517 of the Government Code, the agency shall state the reasons in writing for rejecting the decision.

§ 1798.199.65. Subpoenas; oaths and affirmations; evidence

The agency may subpoena witnesses, compel their attendance and testimony, administer oaths and affirmations, take evidence and require by subpoena the production of any books, papers, records, or other items material to the performance of the agency's duties or exercise of its powers, including, but not limited to, its power to audit a business' compliance with this title.

§ 1798.199.70. Time for bringing action

No administrative action brought pursuant to this title alleging a violation of any of the provisions of this title shall be commenced more than five years after the date on which the violation occurred.

(a) The service of the probable cause hearing notice, as required by Section 1798.199.50, upon the person alleged to have violated this title shall constitute the commencement of the administrative action.

(b) If the person alleged to have violated this title engages in the fraudulent concealment of the person's acts or identity, the five-year period shall be tolled for the period of the concealment. For purposes of this subdivision, “fraudulent concealment” means the person knows of material facts related to the person's duties under this title and knowingly conceals them in performing or omitting to perform those duties for the purpose of defrauding the public of information to which it is entitled under this title.

(c) If, upon being ordered by a superior court to produce any documents sought by a subpoena in any administrative proceeding under this title, the person alleged to have violated this title fails to produce documents in response to the order by the date ordered to comply therewith, the five-year period shall be tolled for the period of the delay from the date of filing of the motion to compel until the date the documents are produced.

§ 1798.199.75. Civil action for collection of unpaid administrative fines

(a) In addition to any other available remedies, the agency may bring a civil action and obtain a judgment in superior court for the purpose of collecting any unpaid administrative fines imposed pursuant to this title after exhaustion of judicial review of the agency's action. The action may be filed as a small claims, limited civil, or unlimited civil case depending on the jurisdictional amount. The venue for this action shall be in the county where the administrative fines were imposed by the agency. In order to obtain a judgment in a proceeding under this section, the agency shall show, following the procedures and rules of evidence as applied in ordinary civil actions, all of the following:

(1) That the administrative fines were imposed following the procedures set forth in this title and implementing regulations.

(2) That the defendant or defendants in the action were notified, by actual or constructive notice, of the imposition of the administrative fines.

(3) That a demand for payment has been made by the agency and full payment has not been received.

(b) A civil action brought pursuant to subdivision (a) shall be commenced within four years after the date on which the administrative fines were imposed.

§ 1798.199.80. Application for judgment to collect administrative fines imposed by order or decision

(a) If the time for judicial review of a final agency order or decision has lapsed, or if all means of judicial review of the order or decision have been exhausted, the agency may apply to the clerk of the court for a judgment to collect the administrative fines imposed by the order or decision, or the order as modified in accordance with a decision on judicial review.

(b) The application, which shall include a certified copy of the order or decision, or the order as modified in accordance with a decision on judicial review, and proof of service of the order or decision, constitutes a sufficient showing to warrant issuance of the judgment to collect the administrative fines. The clerk of the court shall enter the judgment immediately in conformity with the application.

(c) An application made pursuant to this section shall be made to the clerk of the superior court in the county where the administrative fines were imposed by the agency.

(d) A judgment entered in accordance with this section has the same force and effect as, and is subject to all the provisions of law relating to, a judgment in a civil action and may be enforced in the same manner as any other judgment of the court in which it is entered.

(e) The agency may bring an application pursuant to this section only within four years after the date on which all means of judicial review of the order or decision have been exhausted.

(f) The remedy available under this section is in addition to those available under any other law.

§ 1798.199.85. Agency decisions subject to judicial review

Any decision of the agency with respect to a complaint or administrative fine shall be subject to judicial review in an action brought by an interested party to the complaint or administrative fine and shall be subject to an abuse of discretion standard.

§ 1798.199.90. Penalties for violations; Attorney General enforcement

(a) Any business, service provider, contractor, or other person that violates this title shall be subject to an injunction and liable for a civil penalty of not more than two thousand five hundred dollars ($2,500) for each violation or seven thousand five hundred dollars ($7,500) for each intentional violation and each violation involving the personal information of minor consumers, as adjusted pursuant to paragraph (5) of subdivision (a) of Section 1798.185, which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General. The court may consider the good faith cooperation of the business, service provider, contractor, or other person in determining the amount of the civil penalty.

(b) Any civil penalty recovered by an action brought by the Attorney General for a violation of this title, and the proceeds of any settlement of any said action, shall be deposited in the Consumer Privacy Fund.

(c) The agency shall, upon request by the Attorney General, stay an administrative action or investigation under this title to permit the Attorney General to proceed with an investigation or civil action and shall not pursue an administrative action or investigation, unless the Attorney General subsequently determines not to pursue an investigation or civil action. The agency may not limit the authority of the Attorney General to enforce this title.

(d) No civil action may be filed by the Attorney General under this section for any violation of this title after the agency has issued a decision pursuant to Section 1798.199.85 or an order pursuant to Section 1798.199.55 against that person for the same violation.

(e) This section shall not affect the private right of action provided for in Section 1798.150.

§ 1798.199.95. Appropriations

(a) There is hereby appropriated from the General Fund of the state to the agency the sum of five million dollars ($5,000,000) during the fiscal year 2020-2021, and the sum of ten million dollars ($10,000,000) adjusted for cost-of-living changes, during each fiscal year thereafter, for expenditure to support the operations of the agency pursuant to this title. The expenditure of funds under this appropriation shall be subject to the normal administrative review given to other state appropriations. The Legislature shall appropriate those additional amounts to the commission and other agencies as may be necessary to carry out the provisions of this title.

(b) The Department of Finance, in preparing the state budget and the Budget Act bill submitted to the Legislature, shall include an item for the support of this title that shall indicate all of the following:

(1) The amounts to be appropriated to other agencies to carry out their duties under this title, which amounts shall be in augmentation of the support items of those agencies.

(2) The additional amounts required to be appropriated by the Legislature to the agency to carry out the purposes of this title, as provided for in this section.

(3) In parentheses, for informational purposes, the continuing appropriation during each fiscal year of ten million dollars ($10,000,000), adjusted for cost-of-living changes made pursuant to this section.

(c) The Attorney General shall provide staff support to the agency until the agency has hired its own staff. The Attorney General shall be reimbursed by the agency for these services.

§ 1798.199.100. Consideration of good faith cooperation

The agency and any court, as applicable, shall consider the good faith cooperation of the business, service provider, contractor, or other person in determining the amount of any administrative fine or civil penalty for a violation of this title. A business shall not be required by the agency, a court, or otherwise to pay both an administrative fine and a civil penalty for the same violation.

REGULATIONS

§ 7000. Title and Scope.

(a) This Chapter shall be known as the California Consumer Privacy Act Regulations. It may be cited as such and will be referred to in this Chapter as “these regulations.” These regulations govern compliance with the California Consumer Privacy Act and do not limit any other rights that consumers may have.

(b) A violation of these regulations shall constitute a violation of the CCPA and be subject to the remedies provided for therein.

Note: Authority cited: Sections 1798.175 and 1798.185, Civil Code. Reference: Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.120, 1798.121, 1798.125, 1798.130, 1798.135, 1798.140, 1798.145, 1798.150, 1798.155, 1798.175, and 1798.185, 1798.199.40, 1798.199.45, 1798.199.50, 1798.199.55 and 1798.199.65, Civil Code.

§ 7001. Definitions.

In addition to the definitions set forth in Civil Code section 1798.140, for purposes of these

regulations:

(a) “Agency” means the California Privacy Protection Agency established by Civil Code section 1798.199.10 et seq.

(b) “Alternative Opt-out Link” means the alternative opt-out link that a business may provide instead of posting the two separate “Do Not Sell or Share My Personal Information” and “Limit the Use of My Sensitive Personal Information” links as set forth in Civil Code section 1798.135, subdivision (a)(3), and specified in section 7015.

(c) “Attorney General” means the California Attorney General or any officer or employee of the California Department of Justice acting under the authority of the California Attorney General.

(d) “Authorized agent” means a natural person or a business entity that a consumer has authorized to act on their behalf subject to the requirements set forth in section 7063.

(e) “Categories of sources” means types or groupings of persons or entities from which a business collects personal information about consumers, described with enough particularity to provide consumers with a meaningful understanding of the type of person or entity. They may include the consumer directly, advertising networks, internet service providers, data analytics providers, government entities, operating systems and platforms,social networks, and data brokers.

(f) “Categories of third parties” means types or groupings of third parties with whom the business shares personal information, described with enough particularity to provide consumers with a meaningful understanding of the type of third party. They may include advertising networks, internet service providers, data analytics providers, government entities, operating systems and platforms, social networks, and data brokers.

(g) “CCPA” means the California Consumer Privacy Act of 2018, Civil Code section 1798.100 et seq.

(h) “COPPA” means the Children’s Online Privacy Protection Act, 15 U.S.C. sections 6501 to 6506 and 16 Code of Federal Regulations part 312.

(i) “Disproportionate effort” within the context of a business, service provider, contractor, or third party responding to a consumer request means the time and/or resources expended by the business, service provider, contractor, or third party to respond to the individualized request significantly outweighs the reasonably foreseeable impact to the consumer by not responding, taking into account applicable circumstances, such as the size of the business, service provider, contractor, or third party, the nature of the request, and the technical limitations impacting their ability to respond. For example, responding to a consumer request to know may require disproportionate effort when the personal information that is the subject of the request is not in a searchable or readily-accessible format, is maintained only for legal or compliance purposes, is not sold or used for any commercial purpose, and there is no reasonably foreseeable material impact to the consumer by not responding. By contrast, the impact to the consumer of denying a request to correct inaccurate information that the business uses and/or sells may outweigh the burden on the business, service provider, contractor, or third party in honoring the request when the reasonably foreseeable consequence of denying the request would be the denial of services or opportunities to the consumer. A business, service provider, contractor, or third party that has failed to put in place adequate processes and procedures to receive and process consumer requests in accordance with the CCPA and these regulations cannot claim that responding to a consumer’s request requires disproportionate effort.

(j) “Employment benefits” means retirement, health, and other benefit programs, services, or products to which consumers and their dependents or their beneficiaries receive access through the consumer’s employer.

(k) “Employment-related information” means personal information that is collected by the business about a natural person for the reasons identified in Civil Code section 1798.145, subdivision (m)(1). The collection of employment-related information, including for the purpose of administering employment benefits, shall be considered a business purpose.

(l) “Financial incentive” means a program, benefit, or other offering, including payments to consumers, for the collection, retention, sale, or sharing of personal information. Price or service differences are types of financial incentives.

(m) “First party” means a consumer-facing business with which the consumer intends and expects to interact.

(n) “Frictionless manner” means a business’s processing of an opt-out preference signal that complies with the requirements set forth in section 7025, subsection (f).

(o) “Information practices” means practices regarding the collection, use, disclosure, sale, sharing, and retention of personal information.

(p) “Nonbusiness” means a person or entity that does not meet the definition of a “business” as defined in Civil Code section 1798.140, subdivision (d). For example, non-profits and government entities are nonbusinesses because “business” is defined, among other things, to include only entities “organized or operated for the profit or financial benefit of its shareholders or other owners.”

(q) “Notice at Collection” means the notice given by a business to a consumer at or before the point at which a business collects personal information from the consumer as required by Civil Code section 1798.100, subdivisions (a) and (b), and specified in these regulations.

(r) “Notice of Right to Limit” means the notice given by a business informing consumers of their right to limit the use or disclosure of the consumer’s sensitive personal information as required by Civil Code sections 1798.121 and 1798.135 and specified in these regulations.

(s) “Notice of Right to Opt-out of Sale/Sharing” means the notice given by a business informing consumers of their right to opt-out of the sale or sharing of their personal information as required by Civil Code sections 1798.120 and 1798.135 and specified in these regulations.

(t) “Notice of Financial Incentive” means the notice given by a business explaining each financial incentive or price or service difference as required by Civil Code section 1798.125, subdivision (b), and specified in these regulations.

(u) “Opt-out preference signal” means a signal that is sent by a platform, technology, or mechanism, on behalf of the consumer, that communicates the consumer choice to optout of the sale and sharing of personal information and that complies with the requirements set forth in section 7025, subsection (b).

(v) “Price or service difference” means (1) any difference in the price or rate charged for any goods or services to any consumer related to the collection, retention, sale, or sharing of personal information, or (2) any difference in the level or quality of any goods or services offered to any consumer related to the collection, retention, sale, or sharing of personal information, including the denial of goods or services to the consumer.

(w) “Privacy policy,” as referred to in Civil Code sections 1798.130, subdivision (a)(5), and 1798.135, subdivision (c)(2), means the statement that a business shall make available to consumers describing the business’s online and offline information practices, and the rights of consumers regarding their own personal information.

(x) “Request to correct” means a consumer request that a business correct inaccurate personal information that it maintains about the consumer, pursuant to Civil Code section 1798.106.

(y) “Request to delete” means a consumer request that a business delete personal information about the consumer that the business has collected from the consumer, pursuant to Civil Code section 1798.105.

(z) “Request to know” means a consumer request that a business disclose personal information that it has collected about the consumer pursuant to Civil Code sections 1798.110 or 1798.115. It includes a request for any or all of the following:

(1) Specific pieces of personal information that a business has collected about the consumer;

(2) Categories of personal information it has collected about the consumer;

(3) Categories of sources from which the personal information is collected;

(4) Categories of personal information that the business sold or disclosed for a business purpose about the consumer;

(5) Categories of third parties to whom the personal information was sold or disclosed for a business purpose; and

(6) The business or commercial purpose for collecting or selling personal information.

(aa) “Request to limit” means a consumer request that a business limit the use and disclosure of the consumer’s sensitive personal information, pursuant to Civil Code section 1798.121, subdivision (a).

(bb) “Request to opt-in to sale/sharing” means an action demonstrating that the consumer has consented to the business’s sale or sharing of personal information about the consumer by a parent or guardian of a consumer less than 13 years of age or by a consumer at least 13 years of age.

(cc) “Request to opt-out of sale/sharing” means a consumer request that a business neither sell nor share the consumer’s personal information to third parties, pursuant to Civil Code section 1798.120, subdivision (a).

(dd) “Right to correct” means the consumer’s right to request that a business correct inaccurate personal information that it maintains about the consumer as set forth in Civil Code section 1798.106.

(ee) “Right to delete” means the consumer’s right to request that a business delete any personal information about the consumer that the business has collected from the consumer as set forth in Civil Code section 1798.105.

(ff) “Right to know” means the consumer’s right to request that a business disclose personal information that it has collected, sold, or shared about the consumer as set forth in Civil Code sections 1798.110 and 1798.115.

(gg) “Right to limit” means the consumer’s right to request that a business limit the use and disclosure of a consumer’s sensitive personal information as set forth in Civil Code section 1798.121.

(hh) “Right to opt-out of sale/sharing” means the consumer’s right to direct a business that sells or shares personal information about the consumer to third parties to stop doing so as set forth in Civil Code section 1798.120.

(ii) “Signed” means that the written attestation, declaration, or permission has either been physically signed or provided electronically in accordance with the Uniform Electronic Transactions Act, Civil Code section 1633.1 et seq.

(jj) “Third-party identity verification service” means a security process offered by an independent third party that verifies the identity of the consumer making a request to the business. Third-party identity verification services are subject to the requirements set forth in Article 5 regarding requests to delete, requests to correct, or requests to know.

(kk) “Unstructured” as it relates to personal information means personal information that is not organized in a pre-defined manner and could not be retrieved or organized in a pre-defined manner without disproportionate effort on behalf of the business, service provider, contractor, or third party.

(ll) “Value of the consumer’s data” means the value provided to the business by the consumer’s data as calculated under section 7081.

(mm) “Verify” means to determine that the consumer making a request to delete, request to correct, or request to know is the consumer about whom the business has collected information, or if that consumer is less than 13 years of age, the consumer’s parent or legal guardian.

Note: Authority cited: Sections 1798.175 and 1798.185, Civil Code. Reference: Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.120, 1798.121, 1798.125, 1798.130, 1798.135, 1798.140, 1798.145, 1798.150, 1798.155, 1798.175, 1798.185, 1798.199.40, 1798.199.45, 1798.199.50, 1798.199.55 and 1798.199.65, Civil Code.

§ 7002. Restrictions on the Collection and Use of Personal Information.

(a) In accordance with Civil Code section 1798.100, subdivision (c), a business’s collection, use, retention, and/or sharing of a consumer’s personal information shall be reasonably necessary and proportionate to achieve:

(1) The purpose(s) for which the personal information was collected or processed, which shall comply with the requirements set forth in subsection (b); or

(2) Another disclosed purpose that is compatible with the context in which the personal information was collected, which shall comply with the requirements set forth in subsection (c).

(b) The purpose(s) for which the personal information was collected or processed shall be consistent with the reasonable expectations of the consumer(s) whose personal information is collected or processed. The consumer’s (or consumers’) reasonable expectations concerning the purpose for which their personal information will be collected or processed shall be based on the following:

(1) The relationship between the consumer(s) and the business. For example, if the consumer is intentionally interacting with the business on its website to purchase a good or service, the consumer likely expects that the purpose for collecting or processing the personal information is to provide that good or service. By contrast, for example, the consumer of a business’s mobile flashlight application would not expect the business to collect the consumer’s geolocation information to provide theflashlight service.

(2) The type, nature, and amount of personal information that the business seeks to collect or process. For example, if a business’s mobile communication application requests access to the consumer’s contact list in order to call a specific individual, the consumer who is providing their contact list likely expects that the purpose of the business’s use of that contact list will be to connect the consumer with the specific contact they selected. Similarly, if a business collects the consumer’s fingerprint in connection with setting up the security feature of unlocking the device using the fingerprint, the consumer likely expects that the business’s use of the consumer’s fingerprint is only for the purpose of unlocking their mobile device.

(3) The source of the personal information and the business’s method for collecting or processing it. For example, if the consumer is providing their personal information directly to the business while using the business’s product or service, the consumer likely expects that the business will use the personal information to provide that product or service. However, the consumer may not expect that the business will use that same personal information for a different product or service offered by the business or the business’s subsidiary.

(4) The specificity, explicitness, prominence, and clarity of disclosures to the consumer(s) about the purpose for collecting or processing their personal information, such as in the Notice at Collection and in the marketing materials to the consumer(s) about the business’s good or service. For example, the consumer who receives a pop-up notice that the business wants to collect the consumer’s phone number to verify their identity when they log in likely expects that the business will use their phone number for the purpose of verifying the consumer’s identity and not for marketing purposes. Similarly, the consumer may expect that a mobile application that markets itself as a service that finds gas prices near the consumer’s location will collect and use the consumer’s geolocation information for that specific purpose when they are using the service.

(5) The degree to which the involvement of service providers, contractors, third parties, or other entities in the collecting or processing of personal information is apparent to the consumer(s). For example, the consumer likely expects an online retailer’s disclosure of the consumer’s name and address to a delivery service provider in order for that service provider to deliver a purchased product, because that service provider’s involvement is apparent to the consumer. By contrast, the consumer may not expect the disclosure of personal information to a service provider if the consumer is not directly interacting with the service provider or the service provider’s role in the processing is not apparent to the consumer.

(c) Whether another disclosed purpose is compatible with the context in which the personal information was collected shall be based on the following:

(1) At the time of collection of the personal information, the reasonable expectations of the consumer(s) whose personal information is collected or processed concerning the purpose for which their personal information will be collected or processed, based on the factors set forth in subsection (b).

(2) The other disclosed purpose for which the business seeks to further collect or process the consumer’s personal information, including whether it is a business purpose listed in Civil Code section 1798.140, subdivisions (e)(1) through (e)(8).

(3) The strength of the link between subsection (c)(1) and subsection (c)(2). For example, a strong link exists between the consumer’s reasonable expectations that the personal information will be used to provide them with a requested service at the time of collection, and the use of the information to repair errors that impair the intended functionality of that requested service. This would weigh in favor of compatibility. By contrast, for example, a weak link exists between the consumer’s reasonable expectations that the personal information will be collected to provide a requested cloud storage service at the time of collection, and the use of the information to research and develop an unrelated facial recognition service.

(d) For each purpose identified in compliance with subsection (a)(1) or (a)(2), the collection, use, retention, and/or sharing of a consumer’s personal information to achieve that purpose shall be reasonably necessary and proportionate. The business’s collection, use, retention, and/or sharing of a consumer’s personal information shall also be reasonably necessary and proportionate to achieve any purpose for which the business obtains the consumer’s consent in compliance with subsection (e). Whether a business’s collection, use, retention, and/or sharing of a consumer’s personal information is reasonably necessary and proportionate to achieve the purpose identified in compliance with subsection (a)(1) or (a)(2), or any purpose for which the business obtains consent, shall be based on the following:

(1) The minimum personal information that is necessary to achieve the purpose identified in compliance with subsection (a)(1) or (a)(2), or any purpose for which the business obtains consent. For example, to complete an online purchase and send an email confirmation of the purchase to the consumer, an online retailer may need the consumer’s order information, payment and shipping information, and email address

(2) The possible negative impacts on consumers posed by the business’s collection or processing of the personal information. For example, a possible negative impact of collecting precise geolocation information is that it may reveal other sensitive personal information about the consumer, such as health information based on visits to healthcare providers.

(3) The existence of additional safeguards for the personal information to specifically address the possible negative impacts on consumers considered by the business in subsection (d)(2). For example, a business may consider encryption or automatic deletion of personal information within a specific window of time as potential safeguards.

(e) A business shall obtain the consumer’s consent in accordance with section 7004 before collecting or processing personal information for any purpose that does not meet the requirements set forth in subsection (a).

(f) A business shall not collect categories of personal information other than those disclosed in its Notice at Collection in accordance with the CCPA and section 7012. If the business intends to collect additional categories of personal information or intends to use the personal information for additional purposes that are incompatible with the disclosed purpose for which the personal information was collected, the business shall provide a new Notice at Collection. However, any additional collecting or processing of personal information shall comply with subsection (a).

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.100, 1798.106, 1798.121, 1798.130, 1798.135 and 1798.185, Civil Code.

§ 7003. Requirements for Disclosures and Communications to Consumers.

(a) Disclosures and communications to consumers shall be easy to read and understandable to consumers. For example, they shall use plain, straightforward language and avoid technical or legal jargon.

(b) Disclosures required under Article 2 shall also:

(1) Use a format that makes the disclosure readable, including on smaller screens, if applicable.

(2) Be available in the languages in which the business in its ordinary course provides contracts, disclaimers, sale announcements, and other information to consumers in California.

(3) Be reasonably accessible to consumers with disabilities. For notices provided online, the business shall follow generally recognized industry standards, such as the Web Content Accessibility Guidelines, version 2.1 of June 5, 2018, from the World Wide Web Consortium, incorporated herein by reference. In other contexts, the business shall provide information on how a consumer with a disability may access the policy in an alternative format.

(c) For websites, a conspicuous link required under the CCPA or these regulations shall appear in a similar manner as other similarly-posted links used by the business on its homepage(s). For example, the business shall use a font size and color that is at least the approximate size or color as other links next to it that are used by the business on its homepage(s).

(d) For mobile applications, a conspicuous link shall be included in the business’s privacy policy, which must be accessible through the mobile application’s platform page or download page. It may also be accessible through a link within the application, such as through the application’s settings menu.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.120, 1798.121, 1798.125, 1798.130 and 1798.135, Civil Code.

§ 7004. Requirements for Methods for Submitting CCPA Requests and Obtaining Consumer Consent.

(a) Except as expressly allowed by the CCPA and these regulations, businesses shall design and implement methods for submitting CCPA requests and obtaining consumer consent that incorporate the following principles:

(1) Easy to understand. The methods shall use language that is easy for consumers to read and understand. When applicable, they shall comply with the requirements for disclosures to consumers set forth in section 7003.

(2) Symmetry in choice. The path for a consumer to exercise a more privacy-protective option shall not be longer or more difficult or time-consuming than the path to exercise a less privacy-protective option because that would impair or interfere with the consumer’s ability to make a choice. Illustrative examples follow.

(A) It is not symmetrical when a business’s process for submitting a request to optout of sale/sharing requires more steps than that business’s process for a consumer to opt-in to the sale of personal information after having previously opted out. The number of steps for submitting a request to opt-out of sale/sharing is measured from when the consumer clicks on the “Do Not Sell or Share My Personal Information” link to completion of the request. The number of steps for submitting a request to opt-in to the sale of personal information is measured from the first indication by the consumer to the business of their interest to opt-in to completion of the request.

(B) A choice to opt-in to the sale of personal information that provides only the two options, “Yes” and “Ask me later,” is not equal or symmetrical because there isno option to decline the opt-in. “Ask me later” implies that the consumer has not declined but delayed the decision and that the business will continue to ask the consumer to opt-in. Framing the consumer’s options in this manner impairs the  consumer’s ability to make a choice. An equal or symmetrical choice could be between “Yes” and “No.”

(C) A website banner that provides only the two options, “Accept All” and “More Information,” or, “Accept All” and “Preferences,” when seeking the consumer’s consent to use their personal information is not equal or symmetrical because the method allows the consumer to “Accept All” in one step, but requires the consumer to take additional steps to exercise their rights over their personal information. Framing the consumer’s options in this manner impairs the consumer’s ability to make a choice. An equal or symmetrical choice could be between “Accept All” and “Decline All.”

(3) Avoid language or interactive elements that are confusing to the consumer. The methods should not use double negatives. Toggles or buttons must clearly indicate the consumer’s choice. Illustrative examples follow.

(A) Giving the choice of “Yes” or “No” next to the statement “Do Not Sell or Share My Personal Information” is a double negative and a confusing choice for a consumer.

(B) Toggles or buttons that state “on” or “off” may be confusing to a consumer and may require further clarifying language.

(C) Unintuitive placement of buttons to confirm a consumer’s choice may be confusing to the consumer. For example, it is confusing to the consumer when a business at first consistently offers choices in the order of “Yes,” then “No,” but then offers choices in the opposite order—“No,” then “Yes”—when asking the consumer something that would contravene the consumer’s expectation.

(4) Avoid choice architecture that impairs or interferes with the consumer’s ability to make a choice. Businesses should also not design their methods in a manner that would impair the consumer’s ability to exercise their choice because consent must be freely given, specific, informed, and unambiguous. Illustrative examples follow.

(A) Requiring the consumer to click through disruptive screens before they are able to submit a request to opt-out of sale/sharing is a choice architecture that impairs or interferes with the consumer’s ability to exercise their choice.

(B) Bundling choices so that the consumer is only offered the option to consent to using personal information for purposes that meet the requirements set forth in section 7002, subsection (a), together with purposes that are incompatible with the context in which the personal information was collected is a choice architecture that impairs or interferes with the consumer’s ability to make a choice. For example, a business that provides a location-based service, such as a mobile application that finds gas prices near the consumer’s location, shall not  require the consumer to consent to incompatible uses (e.g., sale of the consumer’s geolocation to data brokers) together with a reasonably necessary and proportionate use of geolocation information for providing the locationbased services, which does not require consent. This type of choice architecture does not allow consent to be freely given, specific, informed, or unambiguous because it requires the consumer to consent to incompatible uses in order to obtain the expected service. The business should provide the consumer a separate option to consent to the business’s use of personal information that does not meet the requirements set forth in section 7002, subsection (a).

(5) Easy to execute. The business shall not add unnecessary burden or friction to the process by which the consumer submits a CCPA request. Methods should be tested to ensure that they are functional and do not undermine the consumer’s choice to submit the request. Illustrative examples follow.

(A) Upon clicking the “Do Not Sell or Share My Personal Information” link, the business shall not require the consumer to search or scroll through the text of a privacy policy or similar document or webpage to locate the mechanism for submitting a request to opt-out of sale/sharing.

(B) A business that knows of, but does not remedy, circular or broken links, or nonfunctional email addresses, such as inboxes that are not monitored or have aggressive filters that screen emails from the public, may be in violation of this regulation.

(C) Businesses that require the consumer to unnecessarily wait on a webpage as the business processes the request may be in violation of this regulation.

(b) A method that does not comply with subsection (a) may be considered a dark pattern. Any agreement obtained through the use of dark patterns shall not constitute consumer consent. For example, a business that uses dark patterns to obtain consent from a consumer to sell their personal information shall be in the position of never having obtained the consumer’s consent to do so.

(c) A user interface is a dark pattern if the interface has the effect of substantially subverting or impairing user autonomy, decisionmaking, or choice. A business’s intent in designing the interface is not determinative in whether the user interface is a dark pattern, but a factor to be considered. If a business did not intend to design the user interface to subvert or impair user choice, but the business knows of and does not remedy a user interface that has that effect, the user interface may still be a dark pattern. Similarly, a business’s deliberate ignorance of the effect of its user interface may also weigh in favor of establishing a dark pattern.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.120, 1798.121, 1798.125, 1798.130, 1798.135, 1798.140 and 1798.185, Civil Code.

ARTICLE 2. REQUIRED DISCLOSURES TO CONSUMERS

§ 7010. Overview of Required Disclosures.

(a) Every business that must comply with the CCPA and these regulations shall provide a privacy policy in accordance with the CCPA and section 7011.

(b) A business that controls the collection of a consumer’s personal information from a consumer shall provide a Notice at Collection in accordance with the CCPA and section 7012.

(c) Except as set forth in section 7025, subsection (g), a business that sells or shares personal information shall provide a Notice of Right to Opt-out of Sale/Sharing or the Alternative Opt-out Link in accordance with the CCPA and sections 7013 and 7015.

(d) A business that uses or discloses a consumer’s sensitive personal information for purposes other than those specified in section 7027, subsection (m), shall provide a Notice of Right to Limit or the Alternative Opt-out Link in accordance with the CCPA and sections 7014 and 7015.

(e) A business that offers a financial incentive or price or service difference shall provide a Notice of Financial Incentive in accordance with the CCPA and section 7016.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.100, 1798.105,1798.106, 1798.110, 1798.115, 1798.120, 1798.121, 1798.125, 1798.130 and 1798.135, Civil Code.

§ 7011. Privacy Policy.

(a) The purpose of the privacy policy is to provide consumers with a comprehensive description of a business’s online and offline information practices. It shall also inform consumers about the rights they have regarding their personal information and provide any information necessary for them to exercise those rights.

(b) The privacy policy shall comply with section 7003, subsections (a) and (b).

(c) The privacy policy shall be available in a format that allows a consumer to print it out as a document.

(d) The privacy policy shall be posted online and accessible through a conspicuous link that complies with section 7003, subsections (c) and (d), using the word “privacy” on the business’s website homepage(s) or on the download or landing page of a mobile application. If the business has a California-specific description of consumers’ privacy rights on its website, then the privacy policy shall be included in that description. A business that does not operate a website shall make the privacy policy conspicuously available to consumers. A mobile application may include a link to the privacy policy in the application’s settings menu.

(e) The privacy policy shall include the following information:

(1) A comprehensive description of the business’s online and offline information practices, which includes the following:

(A) Identification of the categories of personal information the business has collected about consumers in the preceding 12 months. The categories shall be described using the specific terms set forth in Civil Code section 1798.140, subdivisions (v)(1)(A) to (K) and (ae)(1) to (2). To the extent that the business has discretion in its description, the business shall describe the category in a manner that provides consumers a meaningful understanding of the information being collected.

(B) Identification of the categories of sources from which the personal information is collected.

(C) Identification of the specific business or commercial purpose for collecting personal information from consumers. The purpose shall be described in a manner that provides consumers a meaningful understanding of why the information is collected.

(D) Identification of the categories of personal information, if any, that the business has sold or shared to third parties in the preceding 12 months. If the business has not sold or shared consumers’ personal information in the preceding 12 months, the business shall disclose that fact.

(E) For each category of personal information identified in subsection (e)(1)(D), the categories of third parties to whom the information was sold or shared.

(F) Identification of the specific business or commercial purpose for selling or sharing consumers’ personal information. The purpose shall be described in a manner that provides consumers a meaningful understanding of why the information is sold or shared.

(G) A statement regarding whether the business has actual knowledge that it sells or shares the personal information of consumers under 16 years of age.

(H) Identification of the categories of personal information, if any, that the business has disclosed for a business purpose to third parties in the preceding 12 months. If the business has not disclosed consumers’ personal information for a business purpose in the preceding 12 months, the business shall disclose that fact.

(I) For each category of personal information identified in subsection (e)(1)(H), the categories of third parties to whom the information was disclosed.

(J) Identification of the specific business or commercial purpose for disclosing theconsumer’s personal information. The purpose shall be described in a manner that provides consumers a meaningful understanding of why the information is disclosed.

(K) A statement regarding whether the business uses or discloses sensitive personal information for purposes other than those specified in section 7027, subsection (m).

(2) An explanation of the rights that the CCPA confers on consumers regarding their personal information, which includes all of the following:

(A) The right to know what personal information the business has collected about the consumer, including the categories of personal information, the categories of sources from which the personal information is collected, the business or commercial purpose for collecting, selling, or sharing personal information, the categories of third parties to whom the business discloses personal information, and the specific pieces of personal information the business has collected about the consumer.

(B) The right to delete personal information that the business has collected from the consumer, subject to certain exceptions.

(C) The right to correct inaccurate personal information that a business maintains about a consumer.

(D) If the business sells or shares personal information, the right to opt-out of the sale or sharing of their personal information by the business.

(E) If the business uses or discloses sensitive personal information for reasons other than those set forth in section 7027, subsection (m), the right to limit the use or disclosure of sensitive personal information by the business.

(F) The right not to receive discriminatory treatment by the business for the exercise of privacy rights conferred by the CCPA, including an employee’s, applicant’s, or independent contractor’s right not to be retaliated against for the exercise of their CCPA rights.

(3) An explanation of how consumers can exercise their CCPA rights and what consumers can expect from that process, which includes all of the following:

(A) An explanation of the methods by which the consumer can exercise their  CPA rights.

(B) Instructions for submitting a request under the CCPA, including any links to an online request form or portal for making such a request, if offered by the business.

(C) If the business sells or shares personal information, and is required to provide a Notice of Right to Opt-out of Sale/Sharing, the contents of the Notice of Right to Opt-out of Sale/Sharing or a link to that notice in accordance with section 7013, subsection (f).

(D) If the business uses or discloses sensitive personal information for purposes other than those specified in section 7027, subsection (m), and is required to provide a Notice of Right to Limit, the contents of the Notice of Right to Limit or a link to that notice in accordance with section 7014, subsection (f).

(E) A general description of the process the business uses to verify a consumer request to know, request to delete, and request to correct, when applicable, including any information the consumer must provide.

(F) Explanation of how an opt-out preference signal will be processed for the consumer (i.e., whether the signal applies to the device, browser, consumer account, and/or offline sales, and in what circumstances) and how the consumer can use an opt-out preference signal.

(G) If the business processes opt-out preference signals in a frictionless manner, information on how consumers can implement opt-out preference signals for the business to process in a frictionless manner.

(H) Instructions on how an authorized agent can make a request under the CCPA on the consumer’s behalf.

(I) If the business has actual knowledge that it sells the personal information of consumers under 16 years of age, a description of the processes required by sections 7070 and 7071.

(J) A contact for questions or concerns about the business’s privacy policies and information practices using a method reflecting the manner in which the business primarily interacts with the consumer.

(4) Date the privacy policy was last updated.

(5) If subject to the data reporting requirements set forth in section 7102, the information required under section 7102, or a link to that information.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.120, 1798.121, 1798.125, 1798.130 and 1798.135, Civil Code.

§ 7012. Notice at Collection of Personal Information.

(a)  The purpose of the Notice at Collection is to provide consumers with timely notice, at or before the point of collection, about the categories of personal information to be collected from them, the purposes for which the personal information is collected or used, and whether that information is sold or shared, so that consumers have a tool to exercise meaningful control over the business’s use of their personal information. For example, upon receiving the Notice at Collection, the consumer can use the information in the notice as a tool to choose whether to engage with the business, or to direct the business not to sell or share their personal information and to limit the use and disclosure of their sensitive personal information.

(b) The Notice at Collection shall comply with section 7003, subsections (a) and (b).

(c) The Notice at Collection shall be made readily available where consumers will encounter it at or before the point of collection of any personal information. Illustrative examples follow.

(1) When a business collects consumers’ personal information online, it may post a conspicuous link to the notice on the introductory page of the business’s website and on all webpages where personal information is collected.

(2) When a business collects consumers’ personal information through a webform, it may post a conspicuous link to the notice in close proximity to the fields in which the consumer inputs their personal information, or in close proximity to the button by which the consumer submits their personal information to the business.

(3) When a business collects personal information through a mobile application, it may provide a link to the notice on the mobile application’s download page and within the application, such as through the application’s settings menu.

(4) When a business collects consumers’ personal information offline, it may include the notice on printed forms that collect personal information, provide the consumer with a paper version of the notice, or post prominent signage directing consumers to where the notice can be found online.

(5) When a business collects personal information over the telephone or in person, it may provide the notice orally.

(d) If a business does not give the Notice at Collection to the consumer at or before the point of collection of their personal information, the business shall not collect personal information from the consumer.

(e) A business shall include the following in its Notice at Collection:

(1) A list of the categories of personal information about consumers, including categories of sensitive personal information, to be collected. Each category of personal information shall be written in a manner that provides consumers a meaningful understanding of the information being collected.

(2) The purpose(s) for which the categories of personal information, including categories of sensitive personal information, are collected and used.

(3) Whether each category of personal information identified in subsection (e)(1) is sold or shared. (4) The length of time the business intends to retain each category of personal information identified in subsection (e)(1), or if that is not possible, the criteria used to determine the period of time it will be retained.

(5) If the business sells or shares personal information, the link to the Notice of Right to Opt-out of Sale/Sharing, or in the case of offline notices, where the webpage can be found online.

(6) A link to the business’s privacy policy, or in the case of offline notices, where the privacy policy can be found online.

(f) If a business collects personal information from a consumer online, the Notice at Collection may be given to the consumer by providing a link that takes the consumer directly to the specific section of the business’s privacy policy that contains the information required in subsection

(e)(1) through (6). Directing the consumer to the beginning of the privacy policy, or to another section of the privacy policy that does not contain the required information, so that the consumer is required to scroll through other information in order to determine the categories of personal information to be collected and/or whether the business sells or shares the personal information collected, does not satisfy this standard.

(g) Third Parties that Control the Collection of Personal Information. This subsection shall not affect the first party’s obligations under the CCPA to comply with a consumer’s request to opt-out of sale/sharing.

(1) For purposes of giving Notice at Collection, more than one business may control the collection of a consumer’s personal information, and thus, have an obligation to provide a Notice at Collection in accordance with the CCPA and these regulations. For example, a first party may allow another business, acting as a third party, to control the collection of personal information from consumers browsing the first party’s website. Both the first party that allows the third parties to collect personal information via its website, as well as the third party controlling the collection of personal information, shall provide a Notice at Collection. The first party and third parties may provide a single Notice at Collection that includes the required information about their collective information practices.

(2) A business that, acting as a third party, controls the collection of personal information on another business’s physical premises, such as in a retail store or in a vehicle, shall provide a Notice at Collection in a conspicuous manner at the physical location(s) where it is collecting the personal information.

(3) Illustrative examples follow.

(A) Business F allows Business G, a third party ad network, to collect consumers’ personal information through Business F’s website. Business F may post a conspicuous link to its Notice at Collection on its homepage(s). Business G shall provide a Notice at Collection on its homepage(s) or include the required information about its information practices in Business F’s Notice at Collection.

(B) Business H, a coffee shop, allows Business I, a business providing Wi-Fi services, to collect personal information from consumers using Business I’s services on Business H’s premises. Business H may post conspicuous signage at the entrance of the store or at the point-of-sale directing consumers to where the Notice at Collection for Business H can be found online. In addition, Business I shall post its own Notice at Collection on the first webpage or other interface consumers see before connecting to the Wi-Fi services offered.

(C) Business J, a car rental business, allows Business K to collect personal information from consumers within the vehicles Business J rents to consumers. Business J may give its Notice at Collection to the consumer at the point of sale (i.e., at the rental counter) either in writing or orally. Business K may provide its own Notice at Collection within the vehicle, such as through signage on the vehicle’s dashboard directing consumers to where the notice can be found online.

(h) A business that neither collects nor controls the collection of personal information directly from the consumer does not need to provide a Notice at Collection to the consumer if it neither sells nor shares the consumer’s personal information.

(i) A data broker registered with the Attorney General pursuant to Civil Code section 1798.99.80 et seq. that collects personal information from a source other than directly from the consumer does not need to provide a Notice at Collection to the consumer if it has included in its registration submission a link to its online privacy policy that includes instructions on how a consumer can submit a request to opt-out of sale/sharing.

Note: Authority: Section 1798.185, Civil Code. Reference: Sections 1798.99.82, 1798.100, 1798.115, 1798.120, 1798.121, 1798.145 and 1798.185, Civil Code.

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§ 7013. Notice of Right to Opt-out of Sale/Sharing and the Do Not Sell or Share My Personal Information” Link.

(a) The purpose of the Notice of Right to Opt-out of Sale/Sharing is to inform consumers of their right to direct a business that sells or shares their personal information to stop selling or sharing their personal information and to provide them with the opportunity to exercise that right. The purpose of the “Do Not Sell or Share My Personal Information” link is to immediately effectuate the consumer’s right to opt-out of sale/sharing, or in the alternative, direct the consumer to the Notice of Right to Opt-out of Sale/Sharing. Accordingly, clicking the business’s “Do Not Sell or Share My Personal Information” link will either have the immediate effect of opting the consumer out of the sale or sharing of personal information or lead the consumer to a webpage where the consumer can learn about and make that choice.

(b) The Notice of Right to Opt-out of Sale/Sharing shall comply with section 7003, subsections (a) and (b).

(c) The “Do Not Sell or Share My Personal Information” link shall be a conspicuous link that complies with section 7003, subsections (c) and (d) and is located at either the header or footer of the business’s internet homepage(s).

(d) In lieu of posting the “Do Not Sell or Share My Personal Information” link, a business may provide the Alternative Opt-out Link in accordance with section 7015 or process opt-out reference signals in a frictionless manner in accordance with section 7025, subsections (f) and (g). The business must still post a Notice of Right to Opt-out of Sale/Sharing in accordance with these regulations.

(e) A business that sells or shares the personal information of consumers shall provide the Notice of Right to Opt-out of Sale/Sharing to consumers as follows:

(1) A business shall post the Notice of Right to Opt-out of Sale/Sharing on the internet webpage to which the consumer is directed after clicking on the “Do Not Sell or Share My Personal Information” link. The notice shall include the information specified in subsection (f) or be a link that takes the consumer directly to the specific section of the business’s privacy policy that contains the same information. If clicking on the “Do Not Sell or Share My Personal Information” link immediately effectuates the consumer’s right to opt-out of sale/sharing or if the business processes opt-out preference signals in a frictionless manner and chooses not to post a link, the business shall provide the notice within its privacy policy.

(2) A business that does not operate a website shall establish, document, and comply with another method by which it informs consumers of their right to opt-out of sale/sharing. That method shall comply with the requirements set forth in section 7003.

(3) A business shall also provide the notice to opt-out of sale/sharing in the same manner in which it collects the personal information that it sells or shares. Illustrative examples follow.

(A) A business that sells or shares personal information that it collects in the course of interacting with consumers offline, such as in a brick-and-mortar store, shall provide notice through an offline method, e.g., on the paper forms that collect the personal information or by posting signage in the area where the personal information is collected directing consumers to where the notice can be found online.

(B) A business that sells or shares personal information that it collects over the phone shall provide notice orally during the call when the information is collected.

(f) A business shall include the following in its Notice of Right to Opt-out of Sale/Sharing:

(1) A description of the consumer’s right to opt-out of the sale or sharing of their personal information by the business; and

(2) Instructions on how the consumer can submit a request to opt-out of sale/sharing. If notice is provided online, the notice shall include the interactive form by which the consumer can submit their request to opt-out of sale/sharing online, as required by section 7026, subsection (a)(1). If the business does not operate a website, the notice shall explain the offline method by which the consumer can submit their request to opt-out of sale/sharing.

(g) A business does not need to provide a Notice of Right to Opt-out of Sale/Sharing or the “Do Not Sell or Share My Personal Information” link if:

(1) It does not sell or share personal information; and

(2) It states in its privacy policy that it does not sell or share personal information.

(h) A business shall not sell or share the personal information it collected during the time the business did not have a Notice of Right to Opt-out of Sale/Sharing posted unless it obtains the consent of the consumer.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.120, 1798.135 and 1798.185, Civil Code.

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§ 7014. Notice of Right to Limit and the Limit the Use of My Sensitive Personal Information” Link.

(a) The purpose of the Notice of Right to Limit is to inform consumers of their right to limit a business’s use and disclosure of their sensitive personal information and to provide them with the opportunity to exercise that right. The purpose of the “Limit the Use of My Sensitive Personal Information” link is to immediately effectuate the consumer’s right to limit, or in the alternative, direct the consumer to the Notice of Right to Limit. Accordingly, clicking the business’s “Limit the Use of My Sensitive Personal Information” link will either have the immediate effect of limiting the use and disclosure of the consumer’s sensitive personal information or lead the consumer to a webpage where the consumer can learn about and make that choice.

(b) The Notice of Right to Limit shall comply with section 7003, subsections (a) and (b).

(c) The “Limit the Use of My Sensitive Personal Information” link shall be a conspicuous link that complies with section 7003, subsections (c) and (d), and is located at either the header or footer of the business’s internet homepage(s).

(d) In lieu of posting the “Limit the Use of My Sensitive Personal Information” link, a business may provide the Alternative Opt-out Link in accordance with section 7015. The business shall still post a Notice of Right to Limit in accordance with these regulations.

(e) A business that uses or discloses a consumer’s sensitive personal information for purposes other than those specified in section 7027, subsection (m), shall provide the Notice of Right to Limit to consumers as follows:

(1) A business shall post the Notice of Right to Limit on the internet webpage to which the consumer is directed after clicking on the “Limit the Use of My Sensitive Personal Information” link. The notice shall include the information specified in subsection (f) or be a link that takes the consumer directly to the specific section of the business’s privacy policy that contains the same information. If clicking on the “Limit the Use of My Sensitive Personal Information” link immediately effectuates the consumer’s right to limit, the business shall provide the notice within its privacy policy.

(2) A business that does not operate a website shall establish, document, and comply with another method by which it informs consumers of their right to limit. That method shall comply with the requirements set forth in section 7003.

(f) A business shall include the following in its Notice of Right to Limit:

(1) A description of the consumer’s right to limit; and

(2) Instructions on how the consumer can submit a request to limit. If notice is provided online, the notice shall include the interactive form by which the consumer can submit their request to limit online, as required by section 7027, subsection (b)(1). If the business does not operate a website, the notice shall explain the offline method by which the consumer can submit their request to limit.

(g) A business does not need to provide a Notice of Right to Limit or the “Limit the Use of My Sensitive Personal Information” link if:

(1) It only uses and discloses sensitive personal information that it collected about the consumer for the purposes specified in section 7027, subsection (m), and states so in its privacy policy; or

(2) It only collects or processes sensitive personal information without the purpose of inferring characteristics about a consumer, and states so in its privacy policy.

(h) A business shall not use or disclose sensitive personal information it collected during the time the business did not have a Notice of Right to Limit posted for purposes other than those specified in section 7027, subsection (m), unless it obtains the consent of the consumer.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.121, 1798.135 and 1798.185, Civil Code.

§ 7015. Alternative Opt-out Link.

(a) The purpose of the Alternative Opt-out Link is to provide businesses the option of providing consumers with a single, clearly-labeled link that allows consumers to easily exercise both their right to opt-out of sale/sharing and right to limit, instead of posting the two separate “Do Not Sell or Share My Personal Information” and “Limit the Use of My Sensitive Personal Information” links. The Alternative Opt-out Link shall direct the consumer to a webpage that informs them of both their right to opt-out of sale/sharing and right to limit and provides them with the opportunity to exercise both rights. 

(b) A business that chooses to use an Alternative Opt-out Link shall title the link, “Your Privacy Choices,” or, “Your California Privacy Choices,” and shall include the following opt-out icon adjacent to the title. The link shall be a conspicuous link that complies with section 7003, subsections (c) and (d), and is located at either the header or footer of the business’s internet homepage(s). The icon shall be approximately the same size as other icons used by the business in the header or footer of its webpage.

(c) The Alternative Opt-out Link shall direct the consumer to a webpage that includes the following information:

(1) A description of the consumer’s right to opt-out of sale/sharing and right to limit, which shall comply with section 7003, subsections (a) and (b); and

(2) The interactive form or mechanism by which the consumer can submit their request to opt-out of sale/sharing and their right to limit online. The method shall be easy for consumers to execute, shall require minimal steps, and shall comply with section 7004.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.120, 1798.121, 1798.135 and 1798.185, Civil Code.

§ 7016. Notice of Financial Incentive.

(a) The purpose of the Notice of Financial Incentive is to explain to the consumer the material terms of a financial incentive or price or service difference the business is offering so that the consumer may make an informed decision about whether to participate. A business that does not offer a financial incentive or price or service difference is not required to provide a Notice of Financial Incentive.

(b) The Notice of Financial Incentive shall comply with section 7003, subsections (a) and (b).

(c) The Notice of Financial Incentive shall be readily available where consumers will encounter it before opting-in to the financial incentive or price or service difference. If the business offers the financial incentive or price or service difference online, the notice may be given by providing a link that takes the consumer directly to the specific section of a business’s privacy policy that contains the information required in subsection (d).

(d) A business shall include the following in its Notice of Financial Incentive:

(1) A succinct summary of the financial incentive or price or service difference offered;

(2) A description of the material terms of the financial incentive or price or service difference, including the categories of personal information that are implicated by the financial incentive or price or service difference and the value of the consumer’s data;

(3) How the consumer can opt-in to the financial incentive or price or service difference;

(4) A statement of the consumer’s right to withdraw from the financial incentive at any time and how the consumer may exercise that right; and

(5) An explanation of how the price or service difference is reasonably related to the value of the consumer’s data, including:

(A) A good-faith estimate of the value of the consumer’s data that forms the basis for offering the price or service difference; and

(B) A description of the method(s) the business used to calculate the value of the consumer’s data.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.125 and 1798.130, Civil Code.

ARTICLE 3. BUSINESS PRACTICES FOR HANDLING CONSUMER REQUESTS

§ 7020. Methods for Submitting Requests to Delete, Requests to Correct, and Requests to Know.

(a) A business that operates exclusively online and has a direct relationship with a consumer from whom it collects personal information shall only be required to provide an email address for submitting requests to delete, requests to correct, and requests to know.

(b) A business that does not fit the description in subsection (a) shall provide two or more designated methods for submitting requests to delete, requests to correct, and requests to know. One of those methods must be a toll-free telephone number. If the business maintains an internet website, one of the methods for submitting these requests shall be through its website, such as through a webform. Other methods for submitting requests to delete, requests to correct, and requests to know may include, but are not limited to, a designated email address, a form submitted in person, and a form submitted through the mail.

(c) A business shall consider the methods by which it primarily interacts with consumers when determining which methods to provide for submitting requests to delete, requests to correct, and requests to know. If the business interacts with consumers in person, the business shall consider providing an in-person method such as a printed form the consumer can directly submit or send by mail, a tablet or computer portal that allows the consumer to complete and submit an online form, or a telephone with which the consumer can call the business’s toll-free number.

(d) A business may use a two-step process for online requests to delete where the consumer must first, submit the request to delete and then second, separately confirm that they want their personal information deleted provided that the business otherwise complies with section 7004.

(e) If a consumer submits a request in a manner that is not one of the designated methods of submission, or is deficient in some manner unrelated to the verification process, the business shall either:

(1) Treat the request as if it had been submitted in accordance with the business’s designated manner, or

(2) Provide the consumer with information on how to submit the request or remedy any deficiencies with the request, if applicable.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.130, 1798.140 and 1798.185, Civil Code.

§ 7021. Timelines for Responding to Requests to Delete, Requests to Correct, and Requests to Know.

(a) No later than 10 business days after receiving a request to delete, request to correct, or request to know, a business shall confirm receipt of the request and provide information about how the business will process the request. The information provided shall describe in general the business’s verification process and when the consumer should expect a response, except in instances where the business has already granted or denied the request. The confirmation may be given in the same manner in which the request was received. For example, if the request is made over the phone, the confirmation may be given orally during the phone call.

(b) Businesses shall respond to a request to delete, request to correct, and request to know no later than 45 calendar days after receipt of the request. The 45-day period will begin on the day that the business receives the request, regardless of time required to verify the request. If the business cannot verify the consumer within the 45-day time period, the business may deny the request. If necessary, businesses may take up to an additional 45 calendar days to respond to the consumer’s request, for a maximum total of 90 calendar days from the day the request is received, provided that the business provides the consumer with notice and an explanation of the reason that the business will take more than 45 days to respond to the request.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.130, 1798.140 and 1798.185, Civil Code.

§ 7022. Requests to Delete.

(a) For requests to delete, if a business cannot verify the identity of the requestor pursuant to the regulations set forth in Article 5, the business may deny the request to delete. The business shall inform the requestor that their identity cannot be verified.

(b) A business shall comply with a consumer’s request to delete their personal information by:

(1) Permanently and completely erasing the personal information from its existing systems except archived or backup systems, deidentifying the personal information, or aggregating the consumer information;

(2) Notifying the business’s service providers or contractors of the need to delete from their records the consumer’s personal information that they collected pursuant to their written contract with the business, or if enabled to do so by the service provider or contractor, the business shall delete the personal information that the service provider or contractor collected pursuant to their written contract with the business;and

(3) Notifying all third parties to whom the business has sold or shared the personal information of the need to delete the consumer’s personal information unless this proves impossible or involves disproportionate effort. If a business claims that notifying some or all third parties would be impossible or would involve disproportionate effort, the business shall provide the consumer a detailed explanation that includes enough facts to give a consumer a meaningful understanding as to why the business cannot notify all third parties. The business shall not simply state that notifying all third parties is impossible or would require disproportionate effort.

(c) A service provider or contractor shall, with respect to personal information that they collected pursuant to their written contract with the business and upon notification by the business, cooperate with the business in responding to a request to delete by doing all of the following:

(1) Permanently and completely erasing the personal information from its existing systems except archived or backup systems, deidentifying the personal information, aggregating the consumer information, or enabling the business to do so.

(2) To the extent that an exception applies to the deletion of personal information, deleting or enabling the business to delete the consumer’s personal information that is not subject to the exception and refraining from using the consumer’s personal information retained for any purpose other than the purpose provided for by that exception.

(3) Notifying any of its own service providers or contractors of the need to delete from their records in the same manner the consumer’s personal information that they collected pursuant to their written contract with the service provider or contractor.

(4) Notifying any other service providers, contractors, or third parties that may have accessed personal information from or through the service provider or contractor, unless the information was accessed at the direction of the business, of the need to delete the consumer’s personal information unless this proves impossible or involves disproportionate effort.

(d) If a business, service provider, or contractor stores any personal information on archived or backup systems, it may delay compliance with the consumer’s request to delete, with respect to data stored on the archived or backup system, until the archived or backup system relating to that data is restored to an active system or is next accessed or used for a sale, disclosure, or commercial purpose.

(e) In responding to a request to delete, a business shall inform the consumer whether it has complied with the consumer’s request. The business shall also inform the consumer that it will maintain a record of the request as required by section 7101, subsection (a). A business, service provider, contractor, or third party may retain a record of the request for the purpose of ensuring that the consumer’s personal information remains deleted from its records.

(f) In cases where a business denies a consumer’s request to delete in whole or in part, the business shall do all of the following:

(1) Provide to the consumer a detailed explanation of the basis for the denial, including any conflict with federal or state law, exception to the CCPA, or factual basis for contending that compliance would be impossible or involve disproportionate effort, unless prohibited from doing so by law.

(2) Delete the consumer’s personal information that is not subject to the exception.

(3) Not use the consumer’s personal information retained for any other purpose than provided for by that exception; and

(4) Instruct its service providers and contractors to delete the consumer’s personal information that is not subject to the exception and to not use the consumer’s personal information retained for any purpose other than the purpose provided for by that exception.

(g) If a business that denies a consumer’s request to delete sells or shares personal information and the consumer has not already made a request to opt-out of sale/sharing, the business shall ask the consumer if they would like to opt-out of the sale or sharing of their personal information and shall include either the contents of, or a link to, the Notice of Right to Opt-out of Sale/Sharing in accordance with section 7013.

(h) In responding to a request to delete, a business may present the consumer with the choice to delete select portions of their personal information as long as a single option to delete all personal information is also offered. A business that provides consumers the ability to delete select categories of personal information in other contexts (e.g., purchase history, browsing history, voice recordings), however, must inform consumers of their ability to do so and direct them to how they can do so. For example, a business may provide the consumer with a link to a support page or other resource that explains consumers’ data deletion options.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.105, 1798.130 and 1798.185, Civil Code.

§ 7023. Requests to Correct.

(a) For requests to correct, if a business cannot verify the identity of the requestor pursuant to the regulations set forth in Article 5, the business may deny the request to correct. The business shall inform the requestor that their identity cannot be verified.

(b) In determining the accuracy of the personal information that is the subject of a consumer’s request to correct, the business shall consider the totality of the circumstances relating to the contested personal information. A business may deny a consumer’s request to correct if it determines that the contested personal information is more likely than not accurate based on the totality of the circumstances.

(1) Considering the totality of the circumstances includes, but is not limited to, considering:

(A) The nature of the personal information (e.g., whether it is objective, subjective, unstructured, sensitive, etc.).

(B) How the business obtained the contested information.

(C) Documentation relating to the accuracy of the information whether provided by the consumer, the business, or another source. Requirements regarding documentation are set forth in subsection (d).

(2) If the business is not the source of the personal information and has no documentation in support of the accuracy of the information, the consumer’s assertion of inaccuracy may be sufficient to establish that the personal information is inaccurate.

(c) A business that complies with a consumer’s request to correct shall correct the personal information at issue on its existing systems. The business shall also instruct all service providers and contractors that maintain the personal information at issue pursuant to their written contract with the business to make the necessary corrections in their respective systems. Service providers and contractors shall comply with the business’s instructions to correct the personal information or enable the business to make the corrections. If a business, service provider, or contractor stores any personal information that is the subject of the request to correct on archived or backup systems, it may delay compliance with the consumer’s request to correct, with respect to data stored on the archived or backup system, until the archived or backup system relating to that data is restored to an active system or is next accessed or used.

(d) Documentation.

(1) A business shall accept, review, and consider any documentation that the consumer provides in connection with their right to correct whether provided voluntarily or as required by the business. Consumers should make a good-faith effort to provide businesses with all necessary information available at the time of the request.

(2) A business may require the consumer to provide documentation if necessary to rebut its own documentation that the personal information is accurate. In determining the necessity of the documentation requested, the business shall consider the following:

(A) The nature of the personal information at issue (e.g., whether it is objective, subjective, unstructured, sensitive, etc.).

(B) The nature of the documentation upon which the business considers the personal information to be accurate (e.g., whether the documentation is from a trusted source, whether the documentation is verifiable, etc.)

(C) The purpose for which the business collects, maintains, or uses the personal information. For example, if the personal information is essential to the functioning of the business, the business may require more documentation.

(D) The impact on the consumer. For example, if the personal information has a negative impact on the consumer, the business may require less documentation.

(3) Any documentation provided by the consumer in connection with their request to correct shall only be used and/or maintained by the business for the purpose of correcting the consumer’s personal information and to comply with the recordkeeping obligations under section 7101.

(4) The business shall implement and maintain reasonable security procedures and practices in maintaining any documentation relating to the consumer’s request to correct.

(e) A business may delete the contested personal information as an alternative to correcting the information if the deletion of the personal information does not negatively impact the consumer, or the consumer consents to the deletion. For example, if deleting instead of correcting inaccurate personal information would make it harder for the consumer to obtain a job, housing, credit, education, or other type of opportunity, the business shall process the request to correct or obtain the consumer’s consent to delete the information.

(f) In responding to a request to correct, a business shall inform the consumer whether it has complied with the consumer’s request. If the business denies a consumer’s request to correct in whole or in part, the business shall do the following:

(1) Explain the basis for the denial, including any conflict with federal or state law, exception to the CCPA, inadequacy in the required documentation, or contention that compliance proves impossible or involves disproportionate effort.

(2) If a business claims that complying with the consumer’s request to correct would be impossible or would involve disproportionate effort, the business shall provide the consumer a detailed explanation that includes enough facts to give a consumer a meaningful understanding as to why the business cannot comply with the request. The business shall not simply state that it is impossible or would require disproportionate effort.

(3) If a business denies a consumer’s request to correct personal information collected and analyzed concerning a consumer’s health, the business shall also inform the consumer that they may provide a written statement to the business to be made part of the consumer’s record pursuant to Civil Code section 1798.185, subdivision (a)(8)(D). The business shall explain to the consumer that the written statement is limited to 250 words per alleged inaccurate piece of personal information and shall include that the consumer must request that the statement be made part of the consumer’s record. Upon receipt of such a statement, the business shall include it with the consumer’s record.

(4) If the personal information at issue can be deleted pursuant to a request to delete, inform the consumer that they can make a request to delete the personal information and provide instructions on how the consumer can make a request to delete.

(g) A business may deny a consumer’s request to correct if the business has denied the consumer’s request to correct the same alleged inaccuracy within the past six months of receiving the request. However, the business must treat the request to correct as new if the consumer provides new or additional documentation to prove that the information at issue is inaccurate.

(h) A business may deny a request to correct if it has a good-faith, reasonable, and documented belief that a request to correct is fraudulent or abusive. The business shall inform the requestor that it will not comply with the request and shall provide an explanation why it believes the request is fraudulent or abusive.

(i) Where the business is not the source of the information that the consumer contends is inaccurate, in addition to processing the consumer’s request, the business may provide the consumer with the name of the source from which the business received the alleged inaccurate information.

(j) Upon request, a business shall disclose specific pieces of personal information that the business maintains and has collected about the consumer to allow the consumer to confirm that the business has corrected the inaccurate information that was the subject of the consumer’s request to correct. This disclosure shall not be considered a response to a request to know that is counted towards the limitation of two requests within a 12-month period as set forth in Civil Code section 1798.130, subdivision (b). With regard to a correction to a consumer’s Social Security number, driver’s license number or other government-issued identification number, financial account number, any health insurance or medical identification number, an account password, security questions and answers, or unique biometric data generated from measurements or technical analysis of human characteristics, a business shall not disclose this information, but may provide a way to confirm that the personal information it maintains is the same as what the consumer has provided.

(k) Whether a business, service provider, or contractor has implemented measures to ensure that personal information that is the subject of a request to correct remains corrected factors into whether that business, service provider, or contractor has complied with a consumer’s request to correct in accordance with the CCPA and these regulations. For example, a business, service provider, or contractor may supplement personal information it maintains about consumers with information obtained from a data broker. Failing to consider and address the possibility that corrected information may be overridden by inaccurate information subsequently received from a data broker may factor into whether that business, service provider, or contractor has adequately complied with a consumer’s request to correct.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.81.5, 1798.106, 1798.130 and 1798.185, Civil Code.

§ 7024. Requests to Know.

(a) For requests that seek the disclosure of specific pieces of information about the consumer, if a business cannot verify the identity of the person making the request pursuant to the regulations set forth in Article 5, the business shall not disclose any specific pieces of personal information to the requestor and shall inform the requestor that it cannot verify their identity. If the request is denied in whole or in part, the business shall also evaluate the consumer’s request as if it is seeking the disclosure of categories of personal information about the consumer pursuant to subsection (b).

(b) For requests that seek the disclosure of categories of personal information about the consumer, if a business cannot verify the identity of the person making the request pursuant to the regulations set forth in Article 5, the business may deny the request to disclose the categories and other information requested and shall inform the requestor that it cannot verify their identity. If the request is denied in whole or in part, the business shall provide or direct the consumer to its information practices set forth in its privacy policy.

(c) In responding to a request to know, a business is not required to search for personal information if all of the following conditions are met:

(1) The business does not maintain the personal information in a searchable or reasonably accessible format.

(2) The business maintains the personal information solely for legal or compliance purposes.

(3) The business does not sell the personal information and does not use it for any commercial purpose.

(4) The business describes to the consumer the categories of records that may contain personal information that it did not search because it meets the conditions stated above.

(d) A business shall not disclose in response to a request to know a consumer’s Social Security number, driver’s license number or other government-issued identification number, financial account number, any health insurance or medical identification number, an account password, security questions and answers, or unique biometric data generated from measurements or technical analysis of human characteristics. The business shall, however, inform the consumer with sufficient particularity that it has collected the type of information. For example, a business shall respond that it collects “unique biometric data including a fingerprint scan” without disclosing the actual fingerprint scan data.

(e) If a business denies a consumer’s verified request to know specific pieces of personal information, in whole or in part, because of a conflict with federal or state law, or an exception to the CCPA, the business shall inform the requestor and explain the basis for the denial, unless prohibited from doing so by law. If the request is denied only in part, the business shall disclose the other information sought by the consumer.

(f) A business shall use reasonable security measures when transmitting personal information to the consumer.

(g) If a business maintains a password-protected account with the consumer, it may comply with a request to know by using a secure self-service portal for consumers to access, view, and receive a portable copy of their personal information if the portal fully discloses the personal information that the consumer is entitled to under the CCPA and these regulations, uses reasonable data security controls, and complies with the verification requirements set forth in Article 5.

(h) In response to a request to know, a business shall provide all the personal information it has collected and maintains about the consumer during the 12-month period preceding the business’s receipt of the consumer’s request. A consumer may request that the business provide personal information that the business collected beyond the 12-month period, as long as it was collected on or after January 1, 2022, and the business shall be required to provide that information unless doing so proves impossible or would involve disproportionate effort. That information shall include any personal information that the business’s service providers or contractors collected pursuant to their written contract with the business. If a business claims that providing personal information beyond the 12-month period preceding the business’s receipt of the consumer’s request would be impossible or would involve disproportionate effort, the business shall not be required to provide it as long as the business provides the consumer a detailed explanation that includes enough facts to give a consumer a meaningful understanding as to why the business cannot provide personal information beyond the 12-month period. The business shall not simply state that it is impossible or would require disproportionate effort.

(i) A service provider or contractor shall provide assistance to the business in responding to a verifiable consumer request to know, including by providing the business the consumer’s personal information it has in its possession that it collected pursuant to their written contract with the business, or by enabling the business to access that personal information.

(j) In responding to a consumer’s verified request to know categories of personal information, categories of sources, and/or categories of third parties, a business shall provide an individualized response to the consumer as required by the CCPA. It shall not refer the consumer to the businesses’ information practices outlined in its privacy policy unless its response would be the same for all consumers and the privacy policy discloses all the information that is otherwise required to be in a response to a request to know such categories.

(k) In responding to a verified request to know categories of personal information, the business shall provide all of the following:

(1) The categories of personal information the business has collected about the consumer.

(2) The categories of sources from which the personal information was collected.

(3) The business or commercial purpose for which it collected or sold the personal information.

(4) The categories of third parties with whom the business shares personal information.

(5) The categories of personal information that the business sold, and for each category identified, the categories of third parties to whom it sold that particular category of personal information.

(6) The categories of personal information that the business disclosed for a business purpose, and for each category identified, the categories of third parties to whom it disclosed that particular category of personal information.

(l) A business shall identify the categories of personal information, categories of sources of personal information, and categories of third parties to whom a business sold or disclosed personal information, in a manner that provides consumers a meaningful understanding of the categories listed.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.110, 1798.115, 1798.130, 1798.140 and 1798.185, Civil Code.

§ 7025. Opt-out Preference Signals.

(a) The purpose of an opt-out preference signal is to provide consumers with a simple and easy-to-use method by which consumers interacting with businesses online can automatically exercise their right to opt-out of sale/sharing. Through an opt-out preference signal, a consumer can opt-out of sale and sharing of their personal information with all businesses they interact with online without having to make individualized requests with each business.

(b) A business that sells or shares personal information shall process any opt-out preference signal that meets the following requirements as a valid request to opt-out of sale/sharing:

(1) The signal shall be in a format commonly used and recognized by businesses. An example would be an HTTP header field or JavaScript object.

(2) The platform, technology, or mechanism that sends the opt-out preference signal shall make clear to the consumer, whether in its configuration or in disclosures to the public, that the use of the signal is meant to have the effect of opting the consumer out of the sale and sharing of their personal information. The configuration or disclosure does not need to be tailored only to California or to refer to California.

(c) When a business that collects personal information from consumers online receives or detects an opt-out preference signal that complies with subsection (b):

(1) The business shall treat the opt-out preference signal as a valid request to opt-out of sale/sharing submitted pursuant to Civil Code section 1798.120 for that browser or device and any consumer profile associated with that browser or device, including pseudonymous profiles. If known, the business shall also treat the opt-out preference signal as a valid request to opt-out of sale/sharing for the consumer. This is not required for a business that does not sell or share personal information.

(2) The business shall not require a consumer to provide additional information beyond what is necessary to send the signal. However, a business may provide the consumer with an option to provide additional information if it will help facilitate the consumer’s request to opt-out of sale/sharing. Any information provided by the consumer shall not be used, disclosed, or retained for any purpose other than processing the request to opt-out of sale/sharing. For example, a business may give the consumer the option to provide information that identifies the consumer so that the request to opt-out of sale/sharing can apply to offline sale or sharing of personal information. However, if the consumer does not respond, the business shall still process the opt-out preference signal as a valid request to opt-out of sale/sharing for that browser or device and any consumer profile the business associates with that browser or device, including pseudonymous profiles.

(3) If the opt-out preference signal conflicts with a consumer’s business-specific privacy setting that allows the business to sell or share their personal information, the business shall process the opt-out preference signal as a valid request to opt-out of sale/sharing, but may notify the consumer of the conflict and provide the consumer with an opportunity to consent to the sale or sharing of their personal information. The business shall comply with section 7004 in obtaining the consumer’s consent to the sale or sharing of their personal information. If the consumer consents to the sale or sharing of their personal information, the business may ignore the opt-out preference signal for as long as the consumer is known to the business.

(4) If the opt-out preference signal conflicts with the consumer’s participation in a business’s financial incentive program that requires the consumer to consent to the sale or sharing of personal information, the business may notify the consumer that processing the opt-out preference signal as a valid request to opt-out of sale/sharing would withdraw the consumer from the financial incentive program and ask the consumer to affirm that they intend to withdraw from the financial incentive program. If the consumer affirms that they intend to withdraw from the financial incentive program, the business shall process the consumer’s request to opt-out of sale/sharing. If the business asks and the consumer does not affirm their intent to withdraw, the business may ignore the opt-out preference signal with respect to that consumer’s participation in the financial incentive program for as long as the consumer is known to the business. If the business does not ask the consumer to affirm their intent with regard to the financial incentive program, the business shall still process the opt-out preference signal as a valid request to opt-out of sale/sharing for that browser or device and any consumer profile the business associates with that browser or device.

(5) Where the consumer is known to the business, the business shall not interpret the absence of an opt-out preference signal after the consumer previously sent an opt-out preference signal as consent to opt-in to the sale or sharing of personal information.

(6) A business may display whether it has processed the consumer’s opt-out preference signal as a valid request to opt-out of sale/sharing on its website. For example, the business may display on its website “Opt-Out Preference Signal Honored” when a browser, device, or consumer using an opt-out preference signal visits the website, or display through a toggle or radio button that the consumer has opted out of the sale of their personal information.

(7) Illustrative examples follow.

(A) Caleb visits Business N’s website using a browser with an opt-out preference signal enabled, but he is not otherwise logged into his account and the business cannot otherwise associate Caleb’s browser with a consumer profile the business maintains. Business N collects and shares Caleb’s personal information tied to his browser identifier for cross-context behavioral advertising. Upon receiving the opt-out preference signal, Business N shall stop selling and sharing Caleb’s information linked to Caleb’s browser identifier for cross-context behavioral advertising, but it would not be able to apply the request to opt-out of the sale/sharing to Caleb’s account information because the connection between Caleb’s browser and Caleb’s account is not known to the business.

(B) Noelle has an account with Business O, an online retailer who manages consumer’s privacy choices through a settings menu. Noelle’s privacy settings default to allowing Business O to sell and share her personal information with the business’s marketing partners. Noelle enables an opt-out preference signal in her browser and then visits Business O’s website. Business O recognizes that Noelle is visiting its website because she is logged into her account. Upon receiving Noelle’s opt-out preference signal, Business O shall treat the signal as a valid request to opt-out of sale/sharing and shall apply it to her device and/or browser and also to her account and any offline sale or sharing of personal information. Business O may inform Noelle that her opt-out preference signal differs from her current privacy settings and provide her with an opportunity to consent to the sale or sharing of her personal information, but it must process the request to opt-out of sale/sharing unless Noelle instructs otherwise. Business O must also wait at least 12 months before asking Noelle to opt-in to the sale or sharing of her personal information in accordance with section 7026, subsection (k). In addition, Business O’s notification would not allow it to fall within the exception set forth in Civil Code section 1798.135, subdivision (b)(1), because it would not be complying with the requirements set forth in subsection (f).

(C) Angela also has an account with Business O and has enabled an opt-out preference signal on her browser while logged into her account. Business O applies the opt-out preference signal as a valid request to opt-out of sale/sharing not only to Angela’s current browser, but also to Angela’s account because she is known to the business while making the request. Angela later logs into her account with Business O using a different device that does not have the opt-out preference signal enabled. Business O shall not interpret the absence of the optout preference signal as consent to opt-in to the sale of personal information.

(D) Ramona participates in Business P’s financial incentive program where she receives coupons in exchange for allowing the business to pseudonymously track and share her online browsing habits with marketing partners. Ramona enables an opt-out preference signal on her browser and then visits Business P’s website. Business P knows that it is Ramona through a cookie that has been placed on her browser, but also detects the opt-out preference signal. Business P may ignore the opt-out preference signal and notify Ramona that her opt-out preference signal conflicts with her participation in the financial incentive program and ask whether she intends to withdraw from the financial incentive program. If Ramona does not affirm her intent to withdraw, Business P may ignore the optout preference signal and place Ramona on a whitelist so that Business P does not have to notify Ramona of the conflict again.

(E) Ramona clears her cookies and revisits Business P’s website with the opt-out preference signal enabled. Business P no longer knows that it is Ramona visiting its website. Business P shall honor Ramona’s opt-out preference signal as it pertains to her browser or device and any consumer profile the business associates with that browser or device.

(d) The business and the platform, technology, or mechanism that sends the opt-out preference signal shall not use, disclose, or retain any personal information collected from the consumer in connection with the sending or processing the request to opt-out of sale/sharing for any purpose other than sending or processing the opt-out preference signal.

(e) Civil Code section 1798.135, subdivisions (b)(1) and (3), provide a business the choice between (1) processing opt-out preference signals and providing the “Do Not Sell or Share My Personal Information” and “Limit the Use of My Sensitive Personal Information” links or the Alternative Opt-out Link; or (2) processing opt-out preference signals in a frictionless manner in accordance with these regulations and not having to provide the “Do Not Sell or Share My Personal Information” and “Limit the Use of My Sensitive Personal Information” links or the Alternative Opt-out Link. They do not give the business the choice between posting the above-referenced links or honoring opt-out preference signals. Even if the business posts the above-referenced links, the business must still process opt-out preference signals, though it may do so in a non-frictionless manner. If a business processes opt-out preference signals in a frictionless manner in accordance with subsections (f) and (g), then it may, but is not required to, provide the above-referenced links.

(f) Except as allowed by these regulations, processing an opt-out preference signal in a frictionless manner as required by Civil Code section 1798.135, subdivision (b)(1), means that the business shall not:

(1) Charge a fee or require any valuable consideration if the consumer uses an opt-out preference signal.

(2) Change the consumer’s experience with the product or service offered by the business. For example, the consumer who uses an opt-out preference signal shall have the same experience with regard to how the business’s product or service functions compared to a consumer who does not use an opt-out preference signal.

(3) Display a notification, pop-up, text, graphic, animation, sound, video, or any interstitial content in response to the opt-out preference signal. However, a business’s display of whether the consumer visiting their website has opted out of the sale or sharing their personal information shall not be considered a violation of this regulation. The business may also provide a link to a privacy settings page, menu, or similar interface that enables the consumer to consent to the business ignoring the opt-out preference signal with respect to the business’s sale or sharing of the consumer’s personal information provided that it complies with subsections (f)(1) through (3).

(g) A business meeting the requirements of Civil Code section 1798.135, subdivision (b)(1) is not required to post the “Do Not Sell or Share My Personal Information” link or the Alternative Opt-out Link if it meets all of the following additional requirements:

(1) Processes the opt-out preference signal in a frictionless manner in accordance with the CCPA and these regulations.

(2) Includes in its privacy policy the following information:

(A) A description of the consumer’s right to opt-out of the sale or sharing of their personal information by the business;

(B) A statement that the business processes opt-out preference signals in a frictionless manner;

(C) Information on how consumers can implement opt-out preference signals for the business to process in frictionless manner; and

(D) Instructions for any other method by which the consumer may submit a request to opt-out of sale/sharing.

(3) Allows the opt-out preference signal to fully effectuate the consumer’s request to optout of sale/sharing. For example, if the business sells or shares personal information offline and needs to request from the consumer additional information that is not provided by the opt-out  reference signal in order to apply the request to opt-out of sale/sharing to offline sales and sharing of personal information, then the business has not fully effectuated the consumer’s request to opt-out of sale/sharing. Illustrative examples follow.

(A) Business Q collects consumers’ online browsing history and shares it with third parties for cross-context behavioral advertising purposes. Business Q also sells consumers’ personal information offline to marketing partners. Business Q cannot fall within the exception set forth in Civil Code section 1798.135, subdivision (b)(1), because a consumer’s opt-out preference signal would only apply to Business Q’s online sharing of personal information about the consumer’s browser or device; the consumer’s opt-out preference signal would not apply to Business Q’s offline selling of the consumer’s information because Business Q could not apply it to the offline selling without additional information provided by the consumer, i.e., the logging into an account.

(B) Business R only sells and shares personal information online for cross-context behavioral advertising purposes. Business R may use the exception set forth in Civil Code section 1798.135, subdivision (b)(1), and not post the “Do Not Sell or Share My Personal Information” link because a consumer using an opt-out preference signal would fully effectuate their right to opt-out of the sale or sharing of their personal information.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.120, 1798.135, 1798.140 and 1798.185, Civil Code.

§ 7026. Requests to Opt-out of Sale/Sharing.

(a) A business that sells or shares personal information shall provide two or more designated methods for submitting requests to opt-out of sale/sharing. A business shall consider the methods by which it interacts with consumers, the manner in which the business collects the personal information that it makes available to third parties, available technology, and ease of use by the consumer when determining which methods consumers may use to submit requests to opt-out of sale/sharing. At least one method offered shall reflect the manner in which the business primarily interacts with the consumer. Illustrative examples follow.

(1) A business that collects personal information from consumers online shall, at a minimum, allow consumers to submit requests to opt-out of sale/sharing through an opt-out preference signal and at least one of the following methods: an interactive form accessible via the “Do Not Sell or Share My Personal Information” link, the Alternative Opt-out Link, or the business’s privacy policy if the business processes an opt-out preference signal in a frictionless manner.

(2) A business that interacts with consumers in person and online may provide an inperson method for submitting requests to opt-out of sale/sharing in addition to the opt-out preference signal.

(3) Other methods for submitting requests to opt-out of the sale/sharing include, but are not limited to, a toll-free phone number, a designated email address, a form submitted in person, and a form submitted through the mail.

(4) A notification or tool regarding cookies, such as a cookie banner or cookie controls, is not by itself an acceptable method for submitting requests to opt-out of sale/sharing because cookies concern the collection of personal information and not the sale or sharing of personal information. An acceptable method for submitting requests to opt-out of sale/sharing must address the sale and sharing of personal information.

(b) A business’s methods for submitting requests to opt-out of sale/sharing shall be easy for consumers to execute, shall require minimal steps, and shall comply with section 7004.

(c) A business shall not require a consumer submitting a request to opt-out of sale/sharing to create an account or provide additional information beyond what is necessary to direct the business not to sell or share the consumer’s personal information.

(d) A business shall not require a verifiable consumer request for a request to opt-out of sale/sharing. A business may ask the consumer for information necessary to complete the request, such as information necessary to identify the consumer whose information shall cease to be sold or shared by the business. However, to the extent that the business can comply with a request to opt-out of sale/sharing without additional information, it shall do so.

(e) If a business has a good-faith, reasonable, and documented belief that a request to opt-out of sale/sharing is fraudulent, the business may deny the request. The business shall inform the requestor that it will not comply with the request and shall provide to the requestor an explanation why it believes the request is fraudulent.

(f) A business shall comply with a request to opt-out of sale/sharing by:

(1) Ceasing to sell to and/or share with third parties the consumer’s personal information as soon as feasibly possible, but no later than 15 business days from the date the business receives the request. Service providers or contractors collecting personal information pursuant to the written contract with the business required by the CCPA and these regulations does not constitute a sale or sharing of personal information.

(2) Notifying all third parties to whom the business has sold or shared the consumer’s personal information, after the consumer submits the request to opt-out of sale/sharing and before the business complies with that request, that the consumer has made a request to opt-out of sale/sharing and directing them to comply with the consumer’s request and forward the request to any other person to whom the third party has made the personal information available during that time period.

(g) A business may provide a means by which the consumer can confirm that their request to opt-out of sale/sharing has been processed by the business. For example, the business may display on its website “Consumer Opted Out of Sale/Sharing” or display through a toggle or radio button that the consumer has opted out of the sale/sharing of their personal information.

(h) In responding to a request to opt-out of sale/sharing, a business may present the consumer with the choice to opt-out of the sale or sharing of personal information for certain uses as long as a single option to opt-out of the sale or sharing of all personal information is also offered. However, doing so in response to an opt-out preference signal will prevent the business from using the exception set forth in Civil Code section 1798.135, subdivision (b)(1).

(i) A business that responds to a request to opt-out of sale/sharing by informing the consumer of a charge for the use of any product or service shall comply with Article 7 and shall provide the consumer with a Notice of Financial Incentive that complies with section 7016 in its response. However, doing so in response to an opt-out preference signal will prevent the business from using the exception set forth in Civil Code section 1798.135, subdivision (b)(1).

(j) A consumer may use an authorized agent to submit a request to opt-out of sale/sharing on the consumer’s behalf if the consumer provides the authorized agent written permission signed by the consumer. A business may deny a request from an authorized agent if the agent does not provide to the business the consumer’s signed permission demonstrating that they have been authorized by the consumer to act on the consumer’s behalf. The requirement to obtain and provide written permission from the consumer does not apply to requests made by an opt-out preference signal.

(k) Except as allowed by these regulations, a business shall wait at least 12 months from the date of the consumer’s request before asking a consumer who has opted out of the sale or sharing of their personal information to consent to the sale or sharing of their personal information.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.120, 1798.135, 1798.140 and 1798.185, Civil Code.

§ 7027. Requests to Limit Use and Disclosure of Sensitive Personal Information.

(a) The unauthorized use or disclosure of sensitive personal information creates a heightened risk of harm for the consumer. The purpose of the request to limit is to give consumers meaningful control over how their sensitive personal information is collected, used, and disclosed. It gives the consumer the ability to limit the business’s use of sensitive personal information to that which is necessary to perform the services or provide the goods reasonably expected by an average consumer who requests those goods or services, with some narrowly tailored exceptions, which are set forth in subsection (m). Sensitive personal information that is collected or processed without the purpose of inferring characteristics about a consumer is not subject to requests to limit.

(b) A business that uses or discloses sensitive personal information for purposes other than those set forth in subsection (m) shall provide two or more designated methods for submitting requests to limit. A business shall consider the methods by which it interacts with consumers, the manner in which the business collects the sensitive personal information that it uses for purposes other than those set forth in subsection (m), available technology, and ease of use by the consumer when determining which methods consumers may use to submit requests to limit. At least one method offered shall reflect the manner in which the business primarily interacts with the consumer. Illustrative examples follow.

(1) A business that collects sensitive personal information from consumers online shall, at a minimum, allow consumers to submit requests to limit through an interactive form accessible via the “Limit the Use of My Sensitive Personal Information” link or the Alternative Opt-out Link.

(2) A business that interacts with consumers in person and online may provide an in person method for submitting requests to limit in addition to the online form.

(3) Other methods for submitting requests to limit include, but are not limited to, a tollfree phone number, a designated email address, a form submitted in person, and a form submitted through the mail.

(4) A notification or tool regarding cookies, such as a cookie banner or cookie controls, is not by itself an acceptable method for submitting requests to limit because cookies concern the collection of personal information and not necessarily the use and disclosure of sensitive personal information. An acceptable method for submitting requests to limit must address the specific right to limit.

(c) A business’s methods for submitting requests to limit shall be easy for consumers to execute, shall require minimal steps, and shall comply with section 7004.

(d) A business shall not require a consumer submitting a request to limit to create an account or provide additional information beyond what is necessary to direct the business to limit the use or disclosure of the consumer’s sensitive personal information.

(e) A business shall not require a verifiable consumer request for a request to limit. A business may ask the consumer for information necessary to complete the request, such as information necessary to identify the consumer to whom the request should be applied. However, to the extent that the business can comply with a request to limit without additional information, it shall do so.

(f) If a business has a good-faith, reasonable, and documented belief that a request to limit is fraudulent, the business may deny the request. The business shall inform the requestor that it will not comply with the request and shall provide to the requestor an explanation why it believes the request is fraudulent.

(g) A business shall comply with a request to limit by:

(1) Ceasing to use and disclose the consumer’s sensitive personal information for purposes other than those set forth in subsection (m) as soon as feasibly possible, but no later than 15 business days from the date the business receives the request.

(2) Notifying all the business’s service providers or contractors that use or disclose the consumer’s sensitive personal information for purposes other than those set forth in subsection (m) that the consumer has made a request to limit and instructing them to comply with the consumer’s request to limit within the same time frame.

(3) Notifying all third parties to whom the business has disclosed or made available the consumer’s sensitive personal information for purposes other than those set forth in subsection (m), after the consumer submitted their request and before the business complies with that request, that the consumer has made a request to limit and direct them 1) to comply with the consumer’s request and 2) to forward the request to any other person with whom the third party has disclosed or shared the sensitive personal information during that time period.

(h) A business may provide a means by which the consumer can confirm that their request to limit has been processed by the business. For example, the business may display through a toggle or radio button that the consumer has limited the business’s use and disclosure of their sensitive personal information.

(i) In responding to a request to limit, a business may present the consumer with the choice to allow specific uses for the sensitive personal information as long as a single option to limit the use of the personal information is also offered.

(j) A consumer may use an authorized agent to submit a request to limit on the consumer’s behalf if the consumer provides the authorized agent written permission signed by the consumer. A business may deny a request from an authorized agent if the agent does not provide to the business the consumer’s signed permission demonstrating that they have been authorized by the consumer to act on the consumer’s behalf.

(k) A business that responds to a request to limit by informing the consumer of a charge for the use of any product or service shall comply with Article 7 and shall provide the consumer with a Notice of Financial Incentive that complies with section 7016 in its response.

(l) Except as allowed by these regulations, a business shall wait at least 12 months from the date the consumer’s request to limit is received before asking a consumer who has exercised their right to limit to consent to the use or disclosure of their sensitive personal information for purposes other than those set forth in subsection (m).

(m) The purposes identified in Civil Code section 1798.121, subdivision (a), for which a business may use or disclose sensitive personal information without being required to offer consumers a right to limit are as follows. A business that only uses or discloses sensitive personal information for these purposes, provided that the use or disclosure is reasonably necessary and proportionate for those purposes, is not required to post a Notice of Right to Limit or provide a method for submitting a request to limit.

(1) To perform the services or provide the goods reasonably expected by an average consumer who requests those goods or services. For example, a consumer’s precise geolocation may be used by a mobile application that is providing the consumer with directions on how to get to a specific location. A consumer’s precise geolocation may not, however, be used by a gaming application where the average consumer would not expect the application to need this piece of sensitive personal information.

(2) To prevent, detect, and investigate security incidents that compromise the availability, authenticity, integrity, or confidentiality of stored or transmitted personal information. For example, a business may disclose a consumer’s log-in information to a data security company that it has hired to investigate and remediate a data breach that involved that consumer’s account.

(3) To resist malicious, deceptive, fraudulent, or illegal actions directed at the business and to prosecute those responsible for those actions. For example, a business may use information about a consumer’s ethnicity and/or the contents of email and text messages to investigate claims of racial discrimination or hate speech.

(4) To ensure the physical safety of natural persons. For example, a business may disclose a consumer’s geolocation information to law enforcement to investigate an alleged kidnapping.

(5) For short-term, transient use, including, but not limited to, nonpersonalized advertising shown as part of a consumer’s current interaction with the business, provided that the personal information is not disclosed to another third party and is not used to build a profile about the consumer or otherwise alter the consumer’s experience outside the current interaction with the business. For example, a business that sells religious books can use information about its customers’ interest in its religious content to serve contextual advertising for other kinds of religious merchandise within its store or on its website, so long as the business does not use sensitive personal information to create a profile about an individual consumer or disclose personal information that reveals consumers’ religious beliefs to third parties.

(6) To perform services on behalf of the business. For example, a business may use information for maintaining or servicing accounts, providing customer service, processing or fulfilling orders and transactions, verifying customer information, processing payments, providing financing, providing analytic services, providing storage, or providing similar services on behalf of the business.

(7) To verify or maintain the quality or safety of a product, service, or device that is owned, manufactured, manufactured for, or controlled by the business, and to improve, upgrade, or enhance the service or device that is owned, manufactured by, manufactured for, or controlled by the business. For example, a car rental business may use a consumer’s driver’s license for the purpose of testing that its internal text recognition software accurately captures license information used in car rental transactions.

(8) To collect or process sensitive personal information where the collection or processing is not for the purpose of inferring characteristics about a consumer. For example, a business that includes a search box on their website by which consumers can search for articles related to their health condition may use the information provided by the consumer for the purpose of providing the search feature without inferring characteristics about the consumer.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.121, 1798.135, 1798.140 and 1798.185, Civil Code.

§ 7028. Requests to Opt-in After Opting-out of the Sale or Sharing of Personal Information.

(a) Requests to opt-in to sale or sharing of personal information shall use a two-step opt-in process whereby the consumer shall first, clearly request to opt-in and then second, separately confirm their choice to opt-in.

(b) If a consumer who has opted-out of the sale or sharing of their personal information initiates a transaction or attempts to use a product or service that requires the sale or sharing of their personal information, the business may inform the consumer that the transaction, product, or service requires the sale or sharing of their personal information and provide instructions on how the consumer can provide consent to opt-in to the sale or sharing of their personal information. The business shall comply with section 7004 when obtaining the consumer’s consent.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.120, 1798.135 and 1798.185, Civil Code.

ARTICLE 4. SERVICE PROVIDERS, CONTRACTORS, AND THIRD PARTIES

§ 7050. Service Providers and Contractors.

(a) A service provider or contractor shall not retain, use, or disclose personal information collected pursuant to its written contract with the business except:

(1) For the specific business purpose(s) set forth in the written contract between the business and the service provider or contractor that is required by the CCPA and these regulations.

(2) To retain and employ another service provider or contractor as a subcontractor, where the subcontractor meets the requirements for a service provider or contractor under the CCPA and these regulations.

(3) For internal use by the service provider or contractor to build or improve the quality of the services it is providing to the business, even if this business purpose is not specified in the written contract required by the CCPA and these regulations, provided that the service provider or contractor does not use the personal information to perform services on behalf of another person. Illustrative examples follow.

(A) An email marketing service provider can send emails on a business’s behalf using the business’s customer email list. The service provider could analyze those customers’ interactions with the marketing emails to improve its services and offer those improved services to everyone. But the service provider cannot use the original email list to send marketing emails on behalf of another business.

(B) A shipping service provider that delivers businesses’ products to their customers may use the addresses received from their business clients and their experience delivering to those addresses to identify faulty or incomplete addresses, and thus, improve their delivery services. However, the shipping service provider cannot compile the addresses received from one business to send advertisements on behalf of another business, or compile addresses received from businesses to sell to data brokers.

(4) To prevent, detect, or investigate data security incidents or protect against malicious, deceptive, fraudulent or illegal activity, even if this business purpose is not specified in the written contract required by the CCPA and these regulations.

(5) For the purposes enumerated in Civil Code section 1798.145, subdivisions (a)(1) through (a)(7).

(b) A service provider or contractor cannot contract with a business to provide cross-context behavioral advertising. Pursuant to Civil Code section 1798.140, subdivision (e)(6), a service provider or contractor may contract with a business to provide advertising and marketing services, but the service provider or contractor shall not combine the personal information of consumers who have opted-out of the sale/sharing that the service provider or contractor receives from, or on behalf of, the business with personal information that the service provider or contractor receives from, or on behalf of, another person or collects from its own interaction with consumers. A person who contracts with a business to provide cross-context behavioral advertising is a third party and not a service provider or contractor with respect to cross-context behavioral advertising services. Illustrative examples follow.

(1) Business S, a clothing company, hires a social media company as a service provider for the purpose of providing Business S’s advertisements on the social media company’s platform. The social media company can serve Business S by providing non-personalized advertising services on its platform based on aggregated or demographic information (e.g., advertisements to women, 18-30 years old, that live in Los Angeles). However, it cannot use a list of customer email addresses provided by Business S to identify users on the social media company’s platform to serve advertisements to them.

(2) Business T, a company that sells cookware, hires an advertising company as a service provider for the purpose of advertising its services. The advertising agency can serve Business T by providing contextual advertising services, such as placing advertisements for Business T’s products on websites that post recipes and other cooking tips.

(c) If a service provider or contractor receives a request made pursuant to the CCPA directly from the consumer, the service provider or contractor shall either act on behalf of the business in accordance with the business’s instructions for responding to the request or inform the consumer that the request cannot be acted upon because the request has been sent to a service provider or contractor.

(d) A service provider or contractor that is a business shall comply with the CCPA and these regulations with regard to any personal information that it collects, maintains, or sells outside of its role as a service provider or contractor.

(e) A person who does not have a contract that complies with section 7051, subsection (a), is not a service provider or a contractor under the CCPA. For example, a business’s disclosure of personal information to a person who does not have a contract that complies with section 7051, subsection (a), may be considered a sale or sharing of personal information for which the business must provide the consumer with the right to opt-out of sale/sharing.

(f) A service provider or a contractor shall comply with the terms of the contract required by the CCPA and these regulations.

(g) Whether an entity that provides services to a nonbusiness must comply with a consumer’s CCPA request depends upon whether the entity is a “business,” as defined by Civil Code section 1798.140, subdivision (d).

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.120, 1798.121, 1798.130, 1798.135, 1798.140 and 1798.185, Civil Code.

§ 7051. Contract Requirements for Service Providers and Contractors.

(a) The contract required by the CCPA for service providers and contractors shall:

(1) Prohibit the service provider or contractor from selling or sharing personal information it collects pursuant to the written contract with the business.

(2) Identify the specific business purpose(s) for which the service provider or contractor is processing personal information pursuant to the written contract with the business, and specify that the business is disclosing the personal information to the service provider or contractor only for the limited and specified business purpose(s) set forth within the contract. The business purpose(s) shall not be described in generic terms, such as referencing the entire contract generally. The description shall be specific.

(3) Prohibit the service provider or contractor from retaining, using, or disclosing the personal information that it collected pursuant to the written contract with the business for any purpose other than the business purpose(s) specified in the contract or as otherwise permitted by the CCPA and these regulations.

(4) Prohibit the service provider or contractor from retaining, using, or disclosing the personal information that it collected pursuant to the written contract with the business for any commercial purpose other than the business purpose(s) specified in the contract, unless expressly permitted by the CCPA or these regulations.

(5) Prohibit the service provider or contractor from retaining, using, or disclosing the personal information that it collected pursuant to the written contract with the business outside the direct business relationship between the service provider or contractor and the business, unless expressly permitted by the CCPA or these regulations. For example, a service provider or contractor shall be prohibited from combining or updating personal information that it collected pursuant to the written contract with the business with personal information that it received from another source or collected from its own interaction with the consumer, unless expressly permitted by the CCPA or these regulations.

(6) Require the service provider or contractor to comply with all applicable sections of the CCPA and these regulations, including—with respect to the personal information that it collected pursuant to the written contract with the business—providing the same level of privacy protection as required of businesses by the CCPA and these regulations. For example, the contract may require the service provider or contractor to cooperate with the business in responding to and complying with consumers’ requests made pursuant to the CCPA, and to implement reasonable security procedures and practices appropriate to the nature of the personal information to protect the personal information from unauthorized or illegal access, destruction, use, modification, or disclosure in accordance with Civil Code section 1798.81.5.

(7) Grant the business the right to take reasonable and appropriate steps to ensure that the service provider or contractor uses the personal information that it collected pursuant to the written contract with the business in a manner consistent with the business’s obligations under the CCPA and these regulations. Reasonable and appropriate steps may include ongoing manual reviews and automated scans of the service provider’s system and regular internal or third-party assessments, audits, or other technical and operational testing at least once every 12 months.

(8) Require the service provider or contractor to notify the business after it makes a determination that it can no longer meet its obligations under the CCPA and these regulations.

(9) Grant the business the right, upon notice, to take reasonable and appropriate steps to stop and remediate the service provider or contractor’s unauthorized use of personal information. For example, the business may require the service provider or contractor to provide documentation that verifies that they no longer retain or use the personal information of consumers that have made a valid request to delete with the business.

(10) Require the service provider or contractor to enable the business to comply with consumer requests made pursuant to the CCPA or require the business to inform the service provider or contractor of any consumer request made pursuant to the CCPA that they must comply with and provide the information necessary for the service provider or contractor to comply with the request.

(b) A service provider or contractor that subcontracts with another person in providing services to the business for whom it is a service provider or contractor shall have a contract with the subcontractor that complies with the CCPA and these regulations, including subsection (a).

(c) Whether a business conducts due diligence of its service providers and contractors factors into whether the business has reason to believe that a service provider or contractor is using personal information in violation of the CCPA and these regulations. For example, depending on the circumstances, a business that never enforces the terms of the contract nor exercises its rights to audit or test the service provider’s or contractor’s systems might not be able to rely on the defense that it did not have reason to believe that the service provider or contractor intends to use the personal information in violation of the CCPA and these regulations at the time the business disclosed the personal information to the service provider or contractor.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.120, 1798.121, 1798.130, 1798.135, 1798.140 and 1798.185, Civil Code.

§ 7052. Third Parties.

(a) A business that sells or shares a consumer’s personal information with a third party shall enter into an agreement with the third party that:

(1) Identifies the limited and specified purpose(s) for which the personal information is made available to the third party. The purpose(s) shall not be described in generic terms, such as referencing the entire contract generally. The description shall be specific.

(2) Specifies that the business is making the personal information available to the third party only for the limited and specified purpose(s) set forth within the contract and requires the third party to use it only for that limited and specified purpose(s).

(3) Requires the third party to comply with all applicable sections of the CCPA and these regulations, including—with respect to the personal information that the business makes available to the third party—providing the same level of privacy protection as required of businesses by the CCPA and these regulations. For example, the contract may require the third party to comply with a consumer’s request to opt-out of sale/sharing forwarded to it by a first-party business and to implement reasonable security procedures and practices appropriate to the nature of the personal information to protect the personal information from unauthorized or illegal access, destruction, use, modification, or disclosure in accordance with Civil Code section 1798.81.5.

(4) Grants the business the right—with respect to the personal information that the business makes available to the third party—to take reasonable and appropriate steps to ensure that the third party uses it in a manner consistent with the business’s obligations under the CCPA and these regulations. For example, the business may require the third party to attest that it treats the personal information the business made available to it in the same manner that the business is obligated to treat it under the CCPA and these regulations.

(5) Grants the business the right, upon notice, to take reasonable and appropriate steps to stop and remediate unauthorized use of personal information made available to the third party. For example, the business may require the third party to provide documentation that verifies that it no longer retains or uses the personal information of consumers who have had their requests to opt-out of sale/sharing forwarded to it by the first party business.

(6) Requires the third party to notify the business after it makes a determination that it can no longer meet its obligations under the CCPA and these regulations.

(b) Whether a business conducts due diligence of the third party factors into whether the business has reason to believe that the third party is using personal information in violation of the CCPA and these regulations. For example, depending on the circumstances, a business that never enforces the terms of the contract might not be able to rely on the defense that it did not have reason to believe that the third party intends to use the personal information in violation of the CCPA and these regulations at the time the business disclosed the personal information to the third party.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.120, 1798.121, 1798.130, 1798.135, 1798.140 and 1798.185, Civil Code.

ARTICLE 5. VERIFICATION OF REQUESTS

§ 7060. General Rules Regarding Verification.

(a) A business shall establish, document, and comply with a reasonable method for verifying that the person making a request to delete, request to correct, or request to know is the consumer about whom the business has collected information.

(b) A business shall not require a consumer to verify their identity to make a request to optout of sale/sharing or to make a request to limit. A business may ask the consumer for information necessary to complete the request; however, it shall not be burdensome on the consumer. For example, a business may ask the consumer for their name, but it shall not require the consumer to take a picture of themselves with their driver’s license.

(c) In determining the method by which the business will verify the consumer’s identity, the business shall:

(1) Whenever feasible, match the identifying information provided by the consumer to the personal information of the consumer already maintained by the business, or use a third-party identity verification service that complies with this section.

(2) Avoid collecting the types of personal information identified in Civil Code section 1798.81.5, subdivision (d), unless necessary for the purpose of verifying the consumer.

(3) Consider the following factors:

(A) The type, sensitivity, and value of the personal information collected and maintained about the consumer. Sensitive personal information shall warrant a more stringent verification process.

(B) The risk of harm to the consumer posed by any unauthorized deletion, correction, or access. A greater risk of harm to the consumer by unauthorized deletion, correction, or access shall warrant a more stringent verification process.

(C) The likelihood that fraudulent or malicious actors would seek the personal information. The higher the likelihood, the more stringent the verification process shall be.

(D) Whether the personal information to be provided by the consumer to verify their identity is sufficiently robust to protect against fraudulent requests or being spoofed or fabricated.

(E) The manner in which the business interacts with the consumer.

(F) Available technology for verification.

(d) A business shall generally avoid requesting additional information from the consumer for purposes of verification. If, however, the business cannot verify the identity of the consumer from the information already maintained by the business, the business may request additional information from the consumer, which shall only be used for the purposes of verifying the identity of the consumer seeking to exercise their rights under the CCPA, security, or fraud-prevention. The business shall delete any new personal information collected for the purposes of verification as soon as practical after processing the consumer’s request, except as required to comply with section 7101.

(e) A business shall not require the consumer or the consumer’s authorized agent to pay a fee for the verification of their request to delete, request to correct, or request to know. For example, a business may not require a consumer to provide a notarized affidavit to verify their identity unless the business compensates the consumer for the cost of notarization.

(f) A business shall implement reasonable security measures to detect fraudulent identity verification activity and prevent the unauthorized deletion, correction, or access of a consumer’s personal information.

(g) If a business maintains consumer information that is deidentified, a business is not obligated to provide or delete this information in response to a consumer request or to reidentify individual data to verify a consumer request.

(h) For requests to correct, the business shall make an effort to verify the consumer based on personal information that is not the subject of the request to correct. For example, if the consumer is contending that the business has the wrong address for the consumer, the business shall not use address as a means of verifying the consumer’s identity.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.120, 1798.121, 1798.130, 1798.135, 1798.140 and 1798.185, Civil Code.

§ 7061. Verification for Password-Protected Accounts.

(a) If a business maintains a password-protected account with the consumer, the business may verify the consumer’s identity through the business’s existing authentication practices for the consumer’s account, provided that the business follows the requirements in section 7060. The business shall also require a consumer to re-authenticate themselves before deleting, correcting, or disclosing the consumer’s data.

(b) If a business suspects fraudulent or malicious activity on or from the password-protected account, the business shall not comply with a consumer’s request to delete, request to correct, or request to know until further verification procedures determine that the consumer request is authentic and the consumer making the request is the person about whom the business has collected information. The business may use the procedures set forth in section 7062 to further verify the identity of the consumer.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.130 and 1798.185, Civil Code.

§ 7062. Verification for Non-Accountholders.

(a) If a consumer does not have or cannot access a password-protected account with a business, the business shall comply with this section, in addition to section 7060.

(b) A business’s compliance with a request to know categories of personal information requires that the business verify the identity of the consumer making the request to a reasonable degree of certainty. A reasonable degree of certainty may include matching at least two data points provided by the consumer with data points maintained by the business that it has determined to be reliable for the purpose of verifying the consumer.

(c) A business’s compliance with a request to know specific pieces of personal information requires that the business verify the identity of the consumer making the request to a reasonably high degree of certainty. A reasonably high degree of certainty may include matching at least three pieces of personal information provided by the consumer with personal information maintained by the business that it has determined to be reliable for the purpose of verifying the consumer together with a signed declaration under penalty of perjury that the requestor is the consumer whose personal information is the subject of the request. If a business uses this method for verification, the business shall maintain all signed declarations as part of its record-keeping obligations.

(d) A business’s compliance with a request to delete or a request to correct may require that the business verify the identity of the consumer to a reasonable or reasonably high degree of certainty depending on the sensitivity of the personal information and the risk of harm to the consumer posed by unauthorized deletion or correction. For example, the deletion of family photographs or the correction of contact information may require a reasonably high degree of certainty, while the deletion of browsing history or correction of marital status may require only a reasonable degree of certainty. A business shall act in good faith when determining the appropriate standard to apply when verifying the consumer in accordance with these regulations.

(e) Illustrative examples follow:

(1) Example 1: If a business maintains personal information in a manner associated with a named actual person, the business may verify the consumer by requiring the consumer to provide evidence that matches the personal information maintained by the business. For example, if a retailer maintains a record of purchases made by a consumer, the business may require the consumer to identify items that they recently purchased from the store or the dollar amount of their most recent purchase to verify their identity to a reasonable degree of certainty.

(2) Example 2: If a business maintains personal information in a manner that is not associated with a named actual person, the business may verify the consumer by requiring the consumer to demonstrate that they are the sole consumer associated with the personal information. For example, a business may have a mobile application that collects personal information about the consumer but does not require an account. The business may determine whether, based on the facts and considering the factors set forth in section 7060, subsection (b)(3), it may reasonably verify a consumer by asking them to provide information that only the person who used the mobile application may know or by requiring the consumer to respond to a notification sent to their device.

(f) A business shall deny a request to know specific pieces of personal information if it cannot verify the identity of the requestor pursuant to these regulations.

(g) If there is no reasonable method by which a business can verify the identity of the consumer to the degree of certainty required by this section, the business shall state so in response to any request and explain why it has no reasonable method by which it can verify the identity of the requestor. If the business has no reasonable method by which it can verify any consumer, the business shall explain why it has no reasonable verification method in its privacy policy. The business shall evaluate and document whether a reasonable method can be established at least once every 12 months, in connection with the requirement to update the privacy policy set forth in Civil Code section 1798.130, subdivision (a)(5).

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.130 and 1798.185, Civil Code.

§ 7063. Authorized Agents.

(a) When a consumer uses an authorized agent to submit a request to delete, request to correct, or a request to know, a business may require the authorized agent to provide proof that the consumer gave the agent signed permission to submit the request. The business may also require the consumer to do either of the following:

(1) Verify their own identity directly with the business.

(2) Directly confirm with the business that they provided the authorized agent permission to submit the request.

(b) Subsection (a) does not apply when a consumer has provided the authorized agent with power of attorney pursuant to Probate Code sections 4121 to 4130. A business shall not require power of attorney in order for a consumer to use an authorized agent to act on their behalf.

(c) An authorized agent shall implement and maintain reasonable security procedures and practices to protect the consumer’s information.

(d) An authorized agent shall not use a consumer’s personal information, or any information collected from or about the consumer, for any purposes other than to fulfill the consumer’s requests, verification, or fraud prevention.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.130 and 1798.185, Civil Code.

ARTICLE 6. SPECIAL RULES REGARDING CONSUMERS UNDER 16 YEARS OF AGE

§ 7070. Consumers Less Than 13 Years of Age.

(a) Process for Opting-In to Sale or Sharing of Personal Information

(1) A business that has actual knowledge that it sells or shares the personal information of a consumer less than the age of 13 shall establish, document, and comply with a reasonable method for determining that the person consenting to the sale or sharing of the personal information about the child is the parent or guardian of that child. This consent to the sale or sharing of personal information is in addition to any verifiable parental consent required under COPPA.

(2) Methods that are reasonably calculated to ensure that the person providing consent is the child’s parent or guardian include, but are not limited to:

(A) Providing a consent form to be signed by the parent or guardian under penalty of perjury and returned to the business by postal mail, facsimile, or electronic scan;

(B) Requiring a parent or guardian, in connection with a monetary transaction, to use a credit card, debit card, or other online payment system that provides notification of each discrete transaction to the primary account holder;

(C) Having a parent or guardian call a toll-free telephone number staffed by trained personnel;

(D) Having a parent or guardian connect to trained personnel via video-conference;

(E) Having a parent or guardian communicate in person with trained personnel; and

(F) Verifying a parent or guardian’s identity by checking a form of government issued identification against databases of such information, as long as the parent or guardian’s identification is deleted by the business from its records promptly after such verification is complete.

(b) When a business receives consent to the sale or sharing of personal information pursuant to subsection (a), the business shall inform the parent or guardian of the right to opt-out of sale/sharing and of the process for doing so on behalf of their child pursuant to section 7026, subsections (a)-(f).

(c) A business shall establish, document, and comply with a reasonable method, in accordance with the methods set forth in subsection (a)(2), for determining that a person submitting a request to delete, request to correct, or request to know the personal information of a child under the age of 13 is the parent or guardian of that child.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.120, 1798.135 and 1798.185, Civil Code.

§ 7071. Consumers at Least 13 Years of Age and Less Than 16 Years of Age.

(a) A business that has actual knowledge that it sells or shares the personal information of consumers at least 13 years of age and less than 16 years of age shall establish, document, and comply with a reasonable process for allowing such consumers to opt-in to the sale or sharing of their personal information, pursuant to section 7028.

(b) When a business receives a request to opt-in to the sale or sharing of personal information from a consumer at least 13 years of age and less than 16 years of age, the business shall inform the consumer of their ongoing right to opt-out of sale/sharing at any point in the future and of the process for doing so pursuant to section 7026.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.120, 1798.135 and 1798.185, Civil Code.

§ 7072. Notices to Consumers Less Than 16 Years of Age.

(a)  A business subject to sections 7070 and/or 7071 shall include a description of the processes set forth in those sections in its privacy policy.

(b)  A business that exclusively targets offers of goods or services directly to consumers under 16 years of age and does not sell or share the personal information without the consent of consumers at least 13 years of age and less than 16 years of age, or the consent of their parent or guardian for consumers under 13 years of age, is not required to provide the Notice of Right to Opt-out of Sale/Sharing.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.120, 1798.135 and 1798.185, Civil Code.

ARTICLE 7. NON-DISCRIMINATION

§ 7080. Discriminatory Practices.

(a) A price or service difference is discriminatory, and therefore prohibited by Civil Code section 1798.125, if the business treats a consumer differently because the consumer exercised a right conferred by the CCPA or these regulations.

(b) A business may offer a price or service difference that is non-discriminatory. A price or service difference is non-discriminatory if it is reasonably related to the value of the consumer’s data. If a business is unable to calculate a good-faith estimate of the value of the consumer’s data or cannot show that the price or service difference is reasonably related to the value of the consumer’s data, that business shall not offer the price or service difference.

(c) A business’s denial of a consumer’s request to delete, request to correct, request to know, or request to opt-out of sale/sharing for reasons permitted by the CCPA or these regulations shall not be considered discriminatory.

(d) Illustrative examples follow:

(1) Example 1: A music streaming business offers a free service as well as a premium service that costs $5 per month. If only the consumers who pay for the music streaming service are allowed to opt-out of the sale or sharing of their personal information, then the practice is discriminatory, unless the $5-per-month payment is reasonably related to the value of the consumer’s data to the business.

(2) Example 2: A clothing business offers a loyalty program whereby customers receive a $5-off coupon by email after spending $100 with the business. A consumer submits a request to delete all personal information the business has collected about them but also informs the business that they want to continue to participate in the loyalty program. The business may deny their request to delete with regard to their email address and the amount the consumer has spent with the business because that information is necessary for the business to provide the loyalty program requested by the consumer and is reasonably anticipated within the context of the business’s ongoing relationship with them pursuant to Civil Code section 1798.105, subdivision(d)(1).

(3) Example 3: A grocery store offers a loyalty program whereby consumers receive coupons and special discounts when they provide their phone numbers. A consumer submits a request to opt-out of the sale/sharing of their personal information. The retailer complies with their request but no longer allows the consumer to participate in the loyalty program. This practice is discriminatory unless the grocery store can demonstrate that the value of the coupons and special discounts are reasonably related to the value of the consumer’s data to the business.

(4) Example 4: An online bookseller collects information about consumers, including their email addresses. It offers coupons to consumers through browser pop-up windows while the consumer uses the bookseller’s website. A consumer submits a request to delete all personal information that the bookseller has collected about them, including their email address and their browsing and purchasing history. The bookseller complies with the request but stops providing the periodic coupons to the consumer. The bookseller’s failure to provide coupons is discriminatory unless the value of the coupons is reasonably related to the value provided to the business by the consumer’s data. The bookseller may not deny the consumer’s request to delete with regard to the email address because the email address is not necessary to provide the coupons or reasonably aligned with the expectations of the consumer based on the consumer’s relationship with the business.

(e) A business shall notify consumers of any financial incentive or price or service difference subject to Civil Code section 1798.125 that it offers in accordance with section 7016.

(f) A business’s charging of a reasonable fee pursuant to Civil Code section 1798.145, subdivision (h)(3), shall not be considered a financial incentive subject to these regulations.

(g) A price or service difference that is the direct result of compliance with a state or federal law shall not be considered discriminatory.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.125, 1798.130 and 1798.185, Civil Code.

§ 7081. Calculating the Value of Consumer Data.

(a) A business offering a price or service difference subject to Civil Code section 1798.125 shall use and document a reasonable and good-faith method for calculating the value of the consumer’s data. The business shall consider one or more of the following:

(1) The marginal value to the business of the sale, collection, or deletion of a consumer’s data.

(2) The average value to the business of the sale, collection, or deletion of a consumer’s data.

(3) The aggregate value to the business of the sale, collection, or deletion of consumers’ data divided by the total number of consumers.

(4) Revenue generated by the business from sale, collection, or retention of consumers’ personal information.

(5) Expenses related to the sale, collection, or retention of consumers’ personal information.

(6) Expenses related to the offer, provision, or imposition of any financial incentive or price or service difference.

(7) Profit generated by the business from sale, collection, or retention of consumers’ personal information.

(8) Any other practical and reasonably reliable method of calculation used in good faith.

(b) For the purpose of calculating the value of consumer data, a business may consider the value to the business of the data of all natural persons in the United States and not just consumers.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.125, 1798.130 and 1798.185, Civil Code.

ARTICLE 8. TRAINING AND RECORD-KEEPING

§ 7100. Training.

(a) All individuals responsible for handling consumer inquiries about the business’s information practices or the business’s compliance with the CCPA shall be informed of all of the requirements in the CCPA and these regulations and how to direct consumers to exercise their rights under the CCPA and these regulations.

(b) A business that knows or reasonably should know that it, alone or in combination, buys, receives for the business’s commercial purposes, sells, or shares for commercial purposes the personal information of 10,000,000 or more consumers in a calendar year shall establish, document, and comply with a training policy to ensure that all individuals responsible for handling consumer requests made under the CCPA or the business’s compliance with the CCPA are informed of all the requirements in these regulations and the CCPA.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.120, 1798.121, 1798.125, 1798.130, 1798.135 and 1798.185, Civil Code.

§ 7101. Record-Keeping.

(a) A business shall maintain records of consumer requests made pursuant to the CCPA and how it responded to the requests for at least 24 months. The business shall implement and maintain reasonable security procedures and practices in maintaining these records.

(b) The records may be maintained in a ticket or log format provided that the ticket or log includes the date of request, nature of request, manner in which the request was made, the date of the business’s response, the nature of the response, and the basis for the denial of the request if the request is denied in whole or in part.

(c) A business’s maintenance of the information required by this section, where that information is not used for any other purpose, does not taken alone violate the CCPA or these regulations.

(d) Information maintained for record-keeping purposes shall not be used for any other purpose except as reasonably necessary for the business to review and modify its processes for compliance with the CCPA and these regulations. Information maintained for record-keeping purposes shall not be shared with any third party except as necessary to comply with a legal obligation.

(e) Other than as required by subsection (b), a business is not required to retain personal information solely for the purpose of fulfilling a consumer request made under the CCPA.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.105, 1798.106, 1798.110, 1798.115, 1798.120, 1798.121, 1798.130, 1798.135 and 1798.185, Civil Code.

§ 7102. Requirements for Businesses Collecting Large Amounts of Personal Information.

(a) A business that knows or reasonably should know that it, alone or in combination, buys, receives for the business’s commercial purposes, sells, shares, or otherwise makes available for commercial purposes the personal information of 10,000,000 or more consumers in a calendar year shall:

(1) Compile the following metrics for the previous calendar year:

(A) The number of requests to delete that the business received, complied with in whole or in part, and denied;

(B) The number of requests to correct that the business received, complied with in whole or in part, and denied;

(C) The number of requests to know that the business received, complied with in whole or in part, and denied;

(D) The number of requests to opt-out of sale/sharing that the business received, complied with in whole or in part, and denied;

(E) The number of requests to limit that the business received, complied with in whole or in part, and denied; and

(F) The median or mean number of days within which the business substantively responded to requests to delete, requests to correct, requests to know, requests to opt-out of sale/sharing, and requests to limit.

(2) Disclose, by July 1 of every calendar year, the information compiled in subsection (a)(1) within their privacy policy or posted on their website and accessible from a link included in their privacy policy. In its disclosure, a business may choose to disclose the number of requests that it denied in whole or in part because the request was not verifiable, was not made by a consumer, called for information exempt from disclosure, or was denied on other grounds.

(b) A business may choose to compile and disclose the information required by subsection (a)(1) for requests received from all individuals, rather than requests received from consumers. The business shall state whether it has done so in its disclosure and shall, upon request, compile and provide to the Attorney General the information required by subsection (a)(1) for requests received from consumers.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.105, 1798.106, 1798.110, 1798.115, 1798.120, 1798.121, 1798.130, 1798.135 and 1798.185, Civil Code.

ARTICLE 9. INVESTIGATIONS AND ENFORCEMENT

§ 7300. Sworn Complaints Filed with the Agency.

(a) Requirements for filing a sworn complaint. Sworn complaints may be filed with the Enforcement Division via the electronic complaint system available on the Agency’s website at https://cppa.ca.gov/ or submitted in person or by mail to the headquarters office of the Agency.
A complaint must:

(1) Identify the business, service provider, contractor, or person who allegedly violated the CCPA;

(2) State the facts that support each alleged violation and include any documents or other evidence supporting this conclusion;

(3) Authorize the alleged violator and the Agency to communicate regarding the complaint, including disclosing the complaint and any information relating to the complaint;

(4) Include the name and current contact information of the complainant; and

(5) Be signed and submitted under penalty of perjury.

(b) The Enforcement Division will notify the complainant in writing of the action, if any, the Agency has taken or plans to take on the complaint, together with the reasons for that action or nonaction. Duplicate complaints submitted by the same complainant may be rejected without notice.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Section 1798.199.45, Civil Code.

§ 7301. Investigations.

(a) The Agency may open investigations upon the sworn complaint of any person or on its own initiative. For example, the Agency may initiate investigations based upon referrals from government agencies or private organizations, and nonsworn or anonymous complaints.

(b) As part of the Agency’s decision to pursue investigations of possible or alleged violations of the CCPA, the Agency may consider all facts it determines to be relevant, including the amount of time between the effective date of the statutory or regulatory requirement(s) and the possible or alleged violation(s) of those requirements, and good-faith efforts to comply with those requirements.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Section 1798.199.45, Civil Code.

§ 7302. Probable Cause Proceedings.

(a) Probable Cause. Under Civil Code section 1798.199.50, probable cause exists when the evidence supports a reasonable belief that the CCPA has been violated.

(b) Probable Cause Notice. The Enforcement Division will provide the alleged violator with notice of the probable cause proceeding as required by Civil Code section 1798.199.50.

(c) Probable Cause Proceeding.

(1) The proceeding shall be closed to the public unless the alleged violator files, at least 10 business days before the proceeding, a written request for a public proceeding. If the proceeding is not open to the public, then the proceeding may be conducted in whole or in part by telephone or videoconference.

(2) The Agency shall conduct the proceeding informally. Only the alleged violator(s), their legal counsel, and the Enforcement Division shall have the right to participate at the proceeding. The Agency shall determine whether there is probable cause based on the probable cause notice and any information or arguments presented at the probable cause proceeding by the parties.

(3) If the alleged violator(s) fails to participate or appear at the probable cause proceeding, the alleged violator(s) waives the right to further probable cause proceedings under Civil Code section 1798.199.50, and the Agency shall determine whether there is probable cause based on the notice and any information or arguments provided by the Enforcement Division.

(d) Probable Cause Determination. The Agency shall issue a written decision with its probable cause determination and serve it on the alleged violator electronically or by mail. The Agency’s probable cause determination is final and not subject to appeal.

(e) Notices of probable cause and probable cause determinations shall not be open to the public nor admissible in evidence in any action or special proceeding other than one enforcing the CCPA.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Section 1798.199.50, Civil Code.

§ 7303. Stipulated Orders.

(a) At any time before or during an administrative hearing and in lieu of such a hearing, the Head of Enforcement and the alleged violator may stipulate to the entry of a final order. If a stipulation has been agreed upon and the scheduled date of the hearing is set to occur before the next Board meeting, the Enforcement Division will apply for a continuance of the hearing.

(b) The final order must be approved by the Board, which may consider the matter in closed session.

(c) The stipulated final order shall be public and have the force of an order of the Board.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.199.35 and 1798.199.55, Civil Code.

§ 7304. Agency Audits.

(a) Scope. The Agency may audit a business, service provider, contractor, or person to ensure compliance with any provision of the CCPA.

(b) Criteria for Selection. The Agency may conduct an audit to investigate possible violations of the CCPA. Alternatively, the Agency may conduct an audit if the subject’s collection or processing of personal information presents significant risk to consumer privacy or security, or if the subject has a history of noncompliance with the CCPA or any other privacy protection law.

(c) Audits may be announced or unannounced as determined by the Agency.

(d) Failure to Cooperate. A subject’s failure to cooperate during the Agency’s audit may result in the Agency issuing a subpoena, seeking a warrant, or otherwise exercising its powers to ensure compliance with the CCPA.

(e) Protection of Personal Information. Consumer personal information disclosed to the Agency during an audit shall be maintained in compliance with the Information Practices Act of 1977, Civil Code section 1798, et seq.

Note: Authority cited: Section 1798.185, Civil Code. Reference: Sections 1798.185, 1798.199.40 and 1798.199.65, Civil Code; Section 11180, Government Code.

CHAPTER 2. CONFLICT OF INTEREST

§ 7500. California Privacy Protection Agency -- Conflict-of-Interest Code.

The Political Reform Act (Government Code Section 81000, et seq.) requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation (2 California Code of Regulations Section 18730), that contains the terms of a standard conflict of interest code which can be incorporated by reference in an agency’s code. After public notice and hearing, the standard code may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference into the Conflict of Interest Code for the California Privacy Protection Agency. This regulation and the attached Appendices, designating positions, and establishing disclosure requirement categories, shall constitute the Conflict of Interest code of the California

Privacy Protection Agency (CPPA). The statement of economic interests for the CPPA Board Members and the Executive Director shall be filed electronically with the Fair Political Practices Commission. All other individuals holding designated positions shall file their statements with the CPPA. All statements must be made available for public inspection and reproduction (Gov. Code Sec. 81008).

APPENDIX A

Designated Positions Disclosure Category

California Privacy Protection Agency Board Members 1

Executive Director 1

Chief Privacy Auditor 1

Attorney (all levels) 1

Deputy Director of Administration 2

Consultants / New Positions *

* Consultants/new positions shall be included in the list of designated positions and shall disclose pursuant to the broadest disclosure category in the code subject to the following limitation:

The Executive Director may determine in writing that a particular consultant or new position, although a “designated position,” is hired to perform a range of duties that is limited in scope and thus is not required to comply with the disclosure requirements described in this section. Such determination shall include a description of the consultant’s or new position’s duties and, based upon that description, a statement of the extent of disclosure requirements. The Executive Director’s determination is a public record and shall be retained for public inspection in the same manner and location as this conflict-of-interest code. (Gov. Code Sec. 81008.)

APPENDIX B

Disclosure Categories

Category 1:

Designated positions in this category shall disclose investments, business positions in business entities and income, (including receipt of gifts, loans and travel payments) and real property in the state of California.

Category 2:

Designated positions in this category shall disclose investments, business positions in business entities and income (including receipt of gifts, loans and travel payments), from sources that provide leased facilities, goods, equipment, vehicles, machinery or services, including training or consulting services of the type utilized by the California Privacy Protection Agency.

NOTE: Authority cited: Section 87300, Government Code. Reference: Sections 87300 and 87302,

Government Code; and Title 2 Code of Regulations Section 18730.

CHAPTER 3. DATA BROKER REGISTRATION

ARTICLE 1. ANNUAL REGISTRATION FEES

§ 7600. Annual Registration Fee.

(a) The annual fee to register as a data broker is $400.00.

Note: Authority cited: Section 1798.99.87, Civil Code. Reference: Section 1798.99.82, Civil Code.

§ 6-1-1301. Short title

The short title of this part 13 is the “Colorado Privacy Act”.

§ 6-1-1302. Legislative declaration

(1) The general assembly hereby:

(a) Finds that:

(I) The people of Colorado regard their privacy as a fundamental right and an essential element of their individual freedom;

(II) Colorado's constitution explicitly provides the right to privacy under section 7 of article II, and fundamental privacy rights have long been, and continue to be, integral to protecting Coloradans and to safeguarding our democratic republic;

(III) Ongoing advances in technology have produced exponential growth in the volume and variety of personal data being generated, collected, stored, and analyzed and these advances present both promise and potential peril;

(IV) The ability to harness and use data in positive ways is driving innovation and brings beneficial technologies to society, but it has also created risks to privacy and freedom; and

(V) The unauthorized disclosure of personal information and loss of privacy can have devastating impacts ranging from financial fraud, identity theft, and unnecessary costs in personal time and finances to destruction of property, harassment, reputational damage, emotional distress, and physical harm;

(b) Determines that:

(I) Technological innovation and new uses of data can help solve societal problems and improve lives, and it is possible to build a world where technological innovation and privacy can coexist; and

(II) States across the United States are looking to this part 13 and similar models to enact state-based data privacy requirements and to exercise the leadership that is lacking at the national level; and

(c) Declares that:

(I) By enacting this part 13, Colorado will be among the states that empower consumers to protect their privacy and require companies to be responsible custodians of data as they continue to innovate;

(II) This part 13 addresses issues of statewide concern and:

(A) Provides consumers the right to access, correct, and delete personal data and the right to opt out not only of the sale of personal data but also of the collection and use of personal data;

(B) Imposes an affirmative obligation upon companies to safeguard personal data; to provide clear, understandable, and transparent information to consumers about how their personal data are used; and to strengthen compliance and accountability by requiring data protection assessments in the collection and use of personal data; and

(C) Empowers the attorney general and district attorneys to access and evaluate a company's data protection assessments, to impose penalties where violations occur, and to prevent future violations.

§ 6-1-1303. Definitions

As used in this part 13, unless the context otherwise requires:

(1) “Affiliate” means a legal entity that controls, is controlled by, or is under common control with another legal entity. As used in this subsection (1), “control” means:

(a) Ownership of, control of, or power to vote twenty-five percent or more of the outstanding shares of any class of voting security of the entity, directly or indirectly, or acting through one or more other persons;

(b) Control in any manner over the election of a majority of the directors, trustees, or general partners of the entity or of individuals exercising similar functions; or

(c) The power to exercise, directly or indirectly, a controlling influence over the management or policies of the entity as determined by the applicable prudential regulator, as that term is defined in 12 U.S.C. sec. 5481 (24), if any.

(2) “Authenticate” means to use reasonable means to determine that a request to exercise any of the rights in section 6-1-1306(1) is being made by or on behalf of the consumer who is entitled to exercise the rights.

(3) “Business associate” has the meaning established in 45 CFR 160.103.

(4) “Child” means an individual under thirteen years of age.

(5) “Consent” means a clear, affirmative act signifying a consumer's freely given, specific, informed, and unambiguous agreement, such as by a written statement, including by electronic means, or other clear, affirmative action by which the consumer signifies agreement to the processing of personal data. The following does not constitute consent:

(a) Acceptance of a general or broad terms of use or similar document that contains descriptions of personal data processing along with other, unrelated information;

(b) Hovering over, muting, pausing, or closing a given piece of content; and

(c) Agreement obtained through dark patterns.

(6) “Consumer”:

(a) Means an individual who is a Colorado resident acting only in an individual or household context; and

(b) Does not include an individual acting in a commercial or employment context, as a job applicant, or as a beneficiary of someone acting in an employment context.

(7) “Controller” means a person that, alone or jointly with others, determines the purposes for and means of processing personal data.

(8) “Covered entity” has the meaning established in 45 CFR 160.103.

(9) “Dark pattern” means a user interface designed or manipulated with the substantial effect of subverting or impairing user autonomy, decision-making, or choice.

(10) “Decisions that produce legal or similarly significant effects concerning a consumer” means a decision that results in the provision or denial of financial or lending services, housing, insurance, education enrollment or opportunity, criminal justice, employment opportunities, health-care services, or access to essential goods or services.

(11) “De-identified data” means data that cannot reasonably be used to infer information about, or otherwise be linked to, an identified or identifiable individual, or a device linked to such an individual, if the controller that possesses the data:

(a) Takes reasonable measures to ensure that the data cannot be associated with an individual;

(b) Publicly commits to maintain and use the data only in a de-identified fashion and not attempt to re-identify the data; and

(c) Contractually obligates any recipients of the information to comply with the requirements of this subsection (11).

(12) “Health-care facility” means any entity that is licensed, certified, or otherwise authorized or permitted by law to administer medical treatment in this state.

(13) “Health-care information” means individually identifiable information relating to the past, present, or future health status of an individual.

(14) “Health-care provider” means a person licensed, certified, or registered in this state to practice medicine, pharmacy, chiropractic, nursing, physical therapy, podiatry, dentistry, optometry, occupational therapy, or other healing arts under title 12.

(15) “HIPAA” means the federal “Health Insurance Portability and Accountability Act of 1996”, as amended, 42 U.S.C. secs. 1320d to 1320d-9.

(16) “Identified or identifiable individual” means an individual who can be readily identified, directly or indirectly, in particular by reference to an identifier such as a name, an identification number, specific geolocation data, or an online identifier.

(17) “Personal data”:

(a) Means information that is linked or reasonably linkable to an identified or identifiable individual; and

(b) Does not include de-identified data or publicly available information. As used in this subsection (17)(b), “publicly available information” means information that is lawfully made available from federal, state, or local government records and information that a controller has a reasonable basis to believe the consumer has lawfully made available to the general public.

(18) “Process” or “processing” means the collection, use, sale, storage, disclosure, analysis, deletion, or modification of personal data and includes the actions of a controller directing a processor to process personal data.

(19) “Processor” means a person that processes personal data on behalf of a controller.

(20) “Profiling” means any form of automated processing of personal data to evaluate, analyze, or predict personal aspects concerning an identified or identifiable individual's economic situation, health, personal preferences, interests, reliability, behavior, location, or movements.

(21) “Protected health information” has the meaning established in 45 CFR 160.103.

(22) “Pseudonymous data” means personal data that can no longer be attributed to a specific individual without the use of additional information if the additional information is kept separately and is subject to technical and organizational measures to ensure that the personal data are not attributed to a specific individual.

(23)(a) “Sale”, “sell”, or “sold” means the exchange of personal data for monetary or other valuable consideration by a controller to a third party.

(b) “Sale”, “sell”, or “sold” does not include the following:

(I) The disclosure of personal data to a processor that processes the personal data on behalf of a controller;

(II) The disclosure of personal data to a third party for purposes of providing a product or service requested by the consumer;

(III) The disclosure or transfer of personal data to an affiliate of the controller;

(IV) The disclosure or transfer to a third party of personal data as an asset that is part of a proposed or actual merger, acquisition, bankruptcy, or other transaction in which the third party assumes control of all or part of the controller's assets; or

(V) The disclosure of personal data:

(A) That a consumer directs the controller to disclose or intentionally discloses by using the controller to interact with a third party; or

(B) Intentionally made available by a consumer to the general public via a channel of mass media.

(24) “Sensitive data” means:

(a) Personal data revealing racial or ethnic origin, religious beliefs, a mental or physical health condition or diagnosis, sex life or sexual orientation, or citizenship or citizenship status;

(b) Genetic or biometric data that may be processed for the purpose of uniquely identifying an individual; or

(c) Personal data from a known child.

(25) “Targeted advertising”:

(a) Means displaying to a consumer an advertisement that is selected based on personal data obtained or inferred over time from the consumer's activities across nonaffiliated websites, applications, or online services to predict consumer preferences or interests; and

(b) Does not include:

(I) Advertising to a consumer in response to the consumer's request for information or feedback;

(II) Advertisements based on activities within a controller's own websites or online applications;

(III) Advertisements based on the context of a consumer's current search query, visit to a website, or online application; or

(IV) Processing personal data solely for measuring or reporting advertising performance, reach, or frequency.

(26) “Third party” means a person, public authority, agency, or body other than a consumer, controller, processor, or affiliate of the processor or the controller.

§ 6-1-1304. Applicability of part

(1) Except as specified in subsection (2) of this section, this part 13 applies to a controller that:

(a) Conducts business in Colorado or produces or delivers commercial products or services that are intentionally targeted to residents of Colorado; and

(b) Satisfies one or both of the following thresholds:

(I) Controls or processes the personal data of one hundred thousand consumers or more during a calendar year; or

(II) Derives revenue or receives a discount on the price of goods or services from the sale of personal data and processes or controls the personal data of twenty-five thousand consumers or more.

(2) This part 13 does not apply to:

(a) Protected health information that is collected, stored, and processed by a covered entity or its business associates;

(b) Health-care information that is governed by part 8 of article 1 of title 25 solely for the purpose of access to medical records;

(c) Patient identifying information, as defined in 42 CFR 2.11, that are governed by and collected and processed pursuant to 42 CFR 2, established pursuant to 42 U.S.C. sec. 290dd-2;

(d) Identifiable private information, as defined in 45 CFR 46.102, for purposes of the federal policy for the protection of human subjects pursuant to 45 CFR 46; identifiable private information that is collected as part of human subjects research pursuant to the ICH E6 Good Clinical Practice Guideline issued by the International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use or the protection of human subjects under 21 CFR 50 and 56; or personal data used or shared in research conducted in accordance with one or more of the categories set forth in this subsection (2)(d);

(e) Information and documents created by a covered entity for purposes of complying with HIPAA and its implementing regulations;

(f) Patient safety work product, as defined in 42 CFR 3.20, that is created for purposes of patient safety improvement pursuant to 42 CFR 3, established pursuant to 42 U.S.C. secs. 299b-21 to 299b-26;

(g) Information that is:

(I) De-identified in accordance with the requirements for de-identification set forth in 45 CFR 164; and

(II) Derived from any of the health-care-related information described in this section;

(h) Information maintained in the same manner as information under subsections (2)(a) to (2)(g) of this section by:

(I) A covered entity or business associate;

(II) A health-care facility or health-care provider; or

(III) A program of a qualified service organization as defined in 42 CFR 2.11;

(i)(I) Except as provided in subsection (2)(i)(II) of this section, an activity involving the collection, maintenance, disclosure, sale, communication, or use of any personal data bearing on a consumer's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living by:

(A) A consumer reporting agency as defined in 15 U.S.C. sec. 1681a (f);

(B) A furnisher of information as set forth in 15 U.S.C. sec. 1681s-2 that provides information for use in a consumer report, as defined in 15 U.S.C. sec. 1681a (d); or

(C) A user of a consumer report as set forth in 15 U.S.C. sec. 1681b.

(II) This subsection (2)(i) applies only to the extent that the activity is regulated by the federal “Fair Credit Reporting Act”, 15 U.S.C. sec. 1681 et seq., as amended, and the personal data are not collected, maintained, disclosed, sold, communicated, or used except as authorized by the federal “Fair Credit Reporting Act”, as amended.

(j) Personal data:

(I) Collected and maintained for purposes of article 22 of title 10;

(II) Collected, processed, sold, or disclosed pursuant to the federal “Gramm-Leach-Bliley Act”, 15 U.S.C. sec. 6801 et seq., as amended, and implementing regulations, if the collection, processing, sale, or disclosure is in compliance with that law;

(III) Collected, processed, sold, or disclosed pursuant to the federal “Driver's Privacy Protection Act of 1994”, 18 U.S.C. sec. 2721 et seq., as amended, if the collection, processing, sale, or disclosure is regulated by that law, including implementing rules, regulations, or exemptions;

(IV) Regulated by the federal “Children's Online Privacy Protection Act of 1998”, 15 U.S.C. secs. 6501 to 6506, as amended, if collected, processed, and maintained in compliance with that law; or

(V) Regulated by the federal “Family Educational Rights and Privacy Act of 1974”, 20 U.S.C. sec. 1232g et seq., as amended, and its implementing regulations;

(k) Data maintained for employment records purposes;

(l) An air carrier as defined in and regulated under 49 U.S.C. sec. 40101 et seq., as amended, and 49 U.S.C. sec. 41713, as amended;

(m) A national securities association registered pursuant to the federal “Securities Exchange Act of 1934”, 15 U.S.C. sec. 78o-3, as amended, or implementing regulations;

(n) Customer data maintained by a public utility as defined in section 40-1-103(1)(a)(I) or an authority as defined in section 43-4-503(1), if the data are not collected, maintained, disclosed, sold, communicated, or used except as authorized by state and federal law;

(o) Data maintained by a state institution of higher education, as defined in section 23-18-102(10), the state, the judicial department of the state, or a county, city and county, or municipality if the data is collected, maintained, disclosed, communicated, and used as authorized by state and federal law for noncommercial purposes. This subsection (2)(o) does not effect any other exemption available under this part 13.

(p) Information used and disclosed in compliance with 45 CFR 164.512; or

(q) A financial institution or an affiliate of a financial institution as defined by and that is subject to the federal “Gramm-Leach-Bliley Act”, 15 U.S.C. sec. 6801 et seq., as amended, and implementing regulations, including Regulation P, 12 CFR 1016.

(3) The obligations imposed on controllers or processors under this part 13 do not:

(a) Restrict a controller's or processor's ability to:

(I) Comply with federal, state, or local laws, rules, or regulations;

(II) Comply with a civil, criminal, or regulatory inquiry, investigation, subpoena, or summons by federal, state, local, or other governmental authorities;

(III) Cooperate with law enforcement agencies concerning conduct or activity that the controller or processor reasonably and in good faith believes may violate federal, state, or local law;

(IV) Investigate, exercise, prepare for, or defend actual or anticipated legal claims;

(V) Conduct internal research to improve, repair, or develop products, services, or technology;

(VI) Identify and repair technical errors that impair existing or intended functionality;

(VII) Perform internal operations that are reasonably aligned with the expectations of the consumer based on the consumer's existing relationship with the controller;

(VIII) Provide a product or service specifically requested by a consumer or the parent or guardian of a child, perform a contract to which the consumer is a party, or take steps at the request of the consumer prior to entering into a contract;

(IX) Protect the vital interests of the consumer or of another individual;

(X) Prevent, detect, protect against, or respond to security incidents, identity theft, fraud, harassment, or malicious, deceptive, or illegal activity; preserve the integrity or security of systems; or investigate, report, or prosecute those responsible for any such action;

(XI) Process personal data for reasons of public interest in the area of public health, but solely to the extent that the processing:

(A) Is subject to suitable and specific measures to safeguard the rights of the consumer whose personal data are processed; and

(B) Is under the responsibility of a professional subject to confidentiality obligations under federal, state, or local law; or

(XII) Assist another person with any of the activities set forth in this subsection (3);

(b) Apply where compliance by the controller or processor with this part 13 would violate an evidentiary privilege under Colorado law;

(c) Prevent a controller or processor from providing personal data concerning a consumer to a person covered by an evidentiary privilege under Colorado law as part of a privileged communication;

(d) Apply to information made available by a third party that the controller has a reasonable basis to believe is protected speech pursuant to applicable law; and

(e) Apply to the processing of personal data by an individual in the course of a purely personal or household activity.

(4) Personal data that are processed by a controller pursuant to an exception provided by this section:

(a) Shall not be processed for any purpose other than a purpose expressly listed in this section or as otherwise authorized by this part 13; and

(b) Shall be processed solely to the extent that the processing is necessary, reasonable, and proportionate to the specific purpose or purposes listed in this section or as otherwise authorized by this part 13.

(5) If a controller processes personal data pursuant to an exemption in this section, the controller bears the burden of demonstrating that the processing qualifies for the exemption and complies with the requirements in subsection (4) of this section.

§ 6-1-1305. Responsibility according to role

(1) Controllers and processors shall meet their respective obligations established under this part 13.

(2) Processors shall adhere to the instructions of the controller and assist the controller to meet its obligations under this part 13. Taking into account the nature of processing and the information available to the processor, the processor shall assist the controller by:

(a) Taking appropriate technical and organizational measures, insofar as this is possible, for the fulfillment of the controller's obligation to respond to consumer requests to exercise their rights pursuant to section 6-1-1306;

(b) Helping to meet the controller's obligations in relation to the security of processing the personal data and in relation to the notification of a breach of the security of the system pursuant to section 6-1-716; and

(c) Providing information to the controller necessary to enable the controller to conduct and document any data protection assessments required by section 6-1-1309. The controller and processor are each responsible for only the measures allocated to them.

(3) Notwithstanding the instructions of the controller, a processor shall:

(a) Ensure that each person processing the personal data is subject to a duty of confidentiality with respect to the data; and

(b) Engage a subcontractor only after providing the controller with an opportunity to object and pursuant to a written contract in accordance with subsection (5) of this section that requires the subcontractor to meet the obligations of the processor with respect to the personal data.

(4) Taking into account the context of processing, the controller and the processor shall implement appropriate technical and organizational measures to ensure a level of security appropriate to the risk and establish a clear allocation of the responsibilities between them to implement the measures.

(5) Processing by a processor must be governed by a contract between the controller and the processor that is binding on both parties and that sets out:

(a) The processing instructions to which the processor is bound, including the nature and purpose of the processing;

(b) The type of personal data subject to the processing, and the duration of the processing;

(c) The requirements imposed by this subsection (5) and subsections (3) and (4) of this section; and

(d) The following requirements:

(I) At the choice of the controller, the processor shall delete or return all personal data to the controller as requested at the end of the provision of services, unless retention of the personal data is required by law;

(II)(A) The processor shall make available to the controller all information necessary to demonstrate compliance with the obligations in this part 13; and

(B) The processor shall allow for, and contribute to, reasonable audits and inspections by the controller or the controller's designated auditor. Alternatively, the processor may, with the controller's consent, arrange for a qualified and independent auditor to conduct, at least annually and at the processor's expense, an audit of the processor's policies and technical and organizational measures in support of the obligations under this part 13 using an appropriate and accepted control standard or framework and audit procedure for the audits as applicable. The processor shall provide a report of the audit to the controller upon request.

(6) In no event may a contract relieve a controller or a processor from the liabilities imposed on them by virtue of its role in the processing relationship as defined by this part 13.

(7) Determining whether a person is acting as a controller or processor with respect to a specific processing of data is a fact-based determination that depends upon the context in which personal data are to be processed. A person that is not limited in its processing of personal data pursuant to a controller's instructions, or that fails to adhere to the instructions, is a controller and not a processor with respect to a specific processing of data. A processor that continues to adhere to a controller's instructions with respect to a specific processing of personal data remains a processor. If a processor begins, alone or jointly with others, determining the purposes and means of the processing of personal data, it is a controller with respect to the processing.

(8)(a) A controller or processor that discloses personal data to another controller or processor in compliance with this part 13 does not violate this part 13 if the recipient processes the personal data in violation of this part 13, and, at the time of disclosing the personal data, the disclosing controller or processor did not have actual knowledge that the recipient intended to commit a violation.

(b) A controller or processor receiving personal data from a controller or processor in compliance with this part 13 as specified in subsection (8)(a) of this section does not violate this part 13 if the controller or processor from which it receives the personal data fails to comply with applicable obligations under this part 13.

§ 6-1-1306. Consumer personal data rights—repeal

(1) Consumers may exercise the following rights by submitting a request using the methods specified by the controller in the privacy notice required under section 6-1-1308(1)(a). The method must take into account the ways in which consumers normally interact with the controller, the need for secure and reliable communication relating to the request, and the ability of the controller to authenticate the identity of the consumer making the request. Controllers shall not require a consumer to create a new account in order to exercise consumer rights pursuant to this section but may require a consumer to use an existing account. A consumer may submit a request at any time to a controller specifying which of the following rights the consumer wishes to exercise:

(a) Right to opt out. (I) A consumer has the right to opt out of the processing of personal data concerning the consumer for purposes of:

(A) Targeted advertising;

(B) The sale of personal data; or

(C) Profiling in furtherance of decisions that produce legal or similarly significant effects concerning a consumer.

(II) A consumer may authorize another person, acting on the consumer's behalf, to opt out of the processing of the consumer's personal data for one or more of the purposes specified in subsection (1)(a)(I) of this section, including through a technology indicating the consumer's intent to opt out such as a web link indicating a preference or browser setting, browser extension, or global device setting. A controller shall comply with an opt-out request received from a person authorized by the consumer to act on the consumer's behalf if the controller is able to authenticate, with commercially reasonable effort, the identity of the consumer and the authorized agent's authority to act on the consumer's behalf.

(III) A controller that processes personal data for purposes of targeted advertising or the sale of personal data shall provide a clear and conspicuous method to exercise the right to opt out of the processing of personal data concerning the consumer pursuant to subsection (1)(a)(I) of this section. The controller shall provide the opt-out method clearly and conspicuously in any privacy notice required to be provided to consumers under this part 13, and in a clear, conspicuous, and readily accessible location outside the privacy notice.

(IV)(A) A controller that processes personal data for purposes of targeted advertising or the sale of personal data may allow consumers to exercise the right to opt out of the processing of personal data concerning the consumer for purposes of targeted advertising or the sale of personal data pursuant to subsections (1)(a)(I)(A) and (1)(a)(I)(B) of this section by controllers through a user-selected universal opt-out mechanism that meets the technical specifications established by the attorney general pursuant to section 6-1-1313. This subsection (1)(a)(IV)(A) is repealed, effective July 1, 2024.

(B) Effective July 1, 2024, a controller that processes personal data for purposes of targeted advertising or the sale of personal data shall allow consumers to exercise the right to opt out of the processing of personal data concerning the consumer for purposes of targeted advertising or the sale of personal data pursuant to subsections (1)(a)(I)(A) and (1)(a)(I)(B) of this section by controllers through a user-selected universal opt-out mechanism that meets the technical specifications established by the attorney general pursuant to section 6-1-1313.

(C) Notwithstanding a consumer's decision to exercise the right to opt out of the processing of personal data through a universal opt-out mechanism pursuant to subsection (1)(a)(IV)(B) of this section, a controller may enable the consumer to consent, through a web page, application, or a similar method, to the processing of the consumer's personal data for purposes of targeted advertising or the sale of personal data, and the consent takes precedence over any choice reflected through the universal opt-out mechanism. Before obtaining a consumer's consent to process personal data for purposes of targeted advertising or the sale of personal data pursuant to this subsection (1)(a)(IV)(C), a controller shall provide the consumer with a clear and conspicuous notice informing the consumer about the choices available under this section, describing the categories of personal data to be processed and the purposes for which they will be processed, and explaining how and where the consumer may withdraw consent. The web page, application, or other means by which a controller obtains a consumer's consent to process personal data for purposes of targeted advertising or the sale of personal data must also allow the consumer to revoke the consent as easily as it is affirmatively provided.

(b) Right of access. A consumer has the right to confirm whether a controller is processing personal data concerning the consumer and to access the consumer's personal data.

(c) Right to correction. A consumer has the right to correct inaccuracies in the consumer's personal data, taking into account the nature of the personal data and the purposes of the processing of the consumer's personal data.

(d) Right to deletion. A consumer has the right to delete personal data concerning the consumer.

(e) Right to data portability. When exercising the right to access personal data pursuant to subsection (1)(b) of this section, a consumer has the right to obtain the personal data in a portable and, to the extent technically feasible, readily usable format that allows the consumer to transmit the data to another entity without hindrance. A consumer may exercise this right no more than two times per calendar year. Nothing in this subsection (1)(e) requires a controller to provide the data to the consumer in a manner that would disclose the controller's trade secrets.

(2) Responding to consumer requests. (a) A controller shall inform a consumer of any action taken on a request under subsection (1) of this section without undue delay and, in any event, within forty-five days after receipt of the request. The controller may extend the forty-five-day period by forty-five additional days where reasonably necessary, taking into account the complexity and number of the requests. The controller shall inform the consumer of an extension within forty-five days after receipt of the request, together with the reasons for the delay.

(b) If a controller does not take action on the request of a consumer, the controller shall inform the consumer, without undue delay and, at the latest, within forty-five days after receipt of the request, of the reasons for not taking action and instructions for how to appeal the decision with the controller as described in subsection (3) of this section.

(c) Upon request, a controller shall provide to the consumer the information specified in this section free of charge; except that, for a second or subsequent request within a twelve-month period, the controller may charge an amount calculated in the manner specified in section 24-72-205(5)(a).

(d) A controller is not required to comply with a request to exercise any of the rights under subsection (1) of this section if the controller is unable to authenticate the request using commercially reasonable efforts, in which case the controller may request the provision of additional information reasonably necessary to authenticate the request.

(3)(a) A controller shall establish an internal process whereby consumers may appeal a refusal to take action on a request to exercise any of the rights under subsection (1) of this section within a reasonable period after the consumer's receipt of the notice sent by the controller under subsection (2)(b) of this section. The appeal process must be conspicuously available and as easy to use as the process for submitting a request under this section.

(b) Within forty-five days after receipt of an appeal, a controller shall inform the consumer of any action taken or not taken in response to the appeal, along with a written explanation of the reasons in support of the response. The controller may extend the forty-five-day period by sixty additional days where reasonably necessary, taking into account the complexity and number of requests serving as the basis for the appeal. The controller shall inform the consumer of an extension within forty-five days after receipt of the appeal, together with the reasons for the delay.

(c) The controller shall inform the consumer of the consumer's ability to contact the attorney general if the consumer has concerns about the result of the appeal.

§ 6-1-1307. Processing de-identified data

(1) This part 13 does not require a controller or processor to do any of the following solely for purposes of complying with this part 13:

(a) Reidentify de-identified data;

(b) Comply with an authenticated consumer request to access, correct, delete, or provide personal data in a portable format pursuant to section 6-1-1306(1), if all of the following are true:

(I)(A) The controller is not reasonably capable of associating the request with the personal data; or

(B) It would be unreasonably burdensome for the controller to associate the request with the personal data;

(II) The controller does not use the personal data to recognize or respond to the specific consumer who is the subject of the personal data or associate the personal data with other personal data about the same specific consumer; and

(III) The controller does not sell the personal data to any third party or otherwise voluntarily disclose the personal data to any third party, except as otherwise authorized by the consumer; or

(c) Maintain data in identifiable form or collect, obtain, retain, or access any data or technology in order to enable the controller to associate an authenticated consumer request with personal data.

(2) A controller that uses de-identified data shall exercise reasonable oversight to monitor compliance with any contractual commitments to which the de-identified data are subject and shall take appropriate steps to address any breaches of contractual commitments.

(3) The rights contained in section 6-1-1306(1)(b) to (1)(e) do not apply to pseudonymous data if the controller can demonstrate that the information necessary to identify the consumer is kept separately and is subject to effective technical and organizational controls that prevent the controller from accessing the information.

§ 6-1-1308. Duties of controllers

(1) Duty of transparency. (a) A controller shall provide consumers with a reasonably accessible, clear, and meaningful privacy notice that includes:

(I) The categories of personal data collected or processed by the controller or a processor;

(II) The purposes for which the categories of personal data are processed;

(III) How and where consumers may exercise the rights pursuant to section 6-1-1306, including the controller's contact information and how a consumer may appeal a controller's action with regard to the consumer's request;

(IV) The categories of personal data that the controller shares with third parties, if any; and

(V) The categories of third parties, if any, with whom the controller shares personal data.

(b) If a controller sells personal data to third parties or processes personal data for targeted advertising, the controller shall clearly and conspicuously disclose the sale or processing, as well as the manner in which a consumer may exercise the right to opt out of the sale or processing.

(c) A controller shall not:

(I) Require a consumer to create a new account in order to exercise a right; or

(II) Based solely on the exercise of a right and unrelated to feasibility or the value of a service, increase the cost of, or decrease the availability of, the product or service.

(d) Nothing in this part 13 shall be construed to require a controller to provide a product or service that requires the personal data of a consumer that the controller does not collect or maintain or to prohibit a controller from offering a different price, rate, level, quality, or selection of goods or services to a consumer, including offering goods or services for no fee, if the offer is related to a consumer's voluntary participation in a bona fide loyalty, rewards, premium features, discount, or club card program.

(2) Duty of purpose specification. A controller shall specify the express purposes for which personal data are collected and processed.

(3) Duty of data minimization. A controller's collection of personal data must be adequate, relevant, and limited to what is reasonably necessary in relation to the specified purposes for which the data are processed.

(4) Duty to avoid secondary use. A controller shall not process personal data for purposes that are not reasonably necessary to or compatible with the specified purposes for which the personal data are processed, unless the controller first obtains the consumer's consent.

(5) Duty of care. A controller shall take reasonable measures to secure personal data during both storage and use from unauthorized acquisition. The data security practices must be appropriate to the volume, scope, and nature of the personal data processed and the nature of the business.

(6) Duty to avoid unlawful discrimination. A controller shall not process personal data in violation of state or federal laws that prohibit unlawful discrimination against consumers.

(7) Duty regarding sensitive data. A controller shall not process a consumer's sensitive data without first obtaining the consumer's consent or, in the case of the processing of personal data concerning a known child, without first obtaining consent from the child's parent or lawful guardian.

§ 6-1-1309. Data protection assessments--attorney general access and evaluation—definition

(1) A controller shall not conduct processing that presents a heightened risk of harm to a consumer without conducting and documenting a data protection assessment of each of its processing activities that involve personal data acquired on or after July 1, 2023, that present a heightened risk of harm to a consumer.

(2) For purposes of this section, “processing that presents a heightened risk of harm to a consumer” includes the following:

(a) Processing personal data for purposes of targeted advertising or for profiling if the profiling presents a reasonably foreseeable risk of:

(I) Unfair or deceptive treatment of, or unlawful disparate impact on, consumers;

(II) Financial or physical injury to consumers;

(III) A physical or other intrusion upon the solitude or seclusion, or the private affairs or concerns, of consumers if the intrusion would be offensive to a reasonable person; or

(IV) Other substantial injury to consumers;

(b) Selling personal data; and

(c) Processing sensitive data.

(3) Data protection assessments must identify and weigh the benefits that may flow, directly and indirectly, from the processing to the controller, the consumer, other stakeholders, and the public against the potential risks to the rights of the consumer associated with the processing, as mitigated by safeguards that the controller can employ to reduce the risks. The controller shall factor into this assessment the use of de-identified data and the reasonable expectations of consumers, as well as the context of the processing and the relationship between the controller and the consumer whose personal data will be processed.

(4) A controller shall make the data protection assessment available to the attorney general upon request. The attorney general may evaluate the data protection assessment for compliance with the duties contained in section 6-1-1308 and with other laws, including this article 1. Data protection assessments are confidential and exempt from public inspection and copying under the “Colorado Open Records Act”, part 2 of article 72 of title 24. The disclosure of a data protection assessment pursuant to a request from the attorney general under this subsection (4) does not constitute a waiver of any attorney-client privilege or work-product protection that might otherwise exist with respect to the assessment and any information contained in the assessment.

(5) A single data protection assessment may address a comparable set of processing operations that include similar activities.

(6) Data protection assessment requirements apply to processing activities created or generated after July 1, 2023, and are not retroactive.

§ 6-1-1310. Liability

(1) Notwithstanding any provision in part 1 of this article 1, this part 13 does not authorize a private right of action for a violation of this part 13 or any other provision of law. This subsection (1) neither relieves any party from any duties or obligations imposed, nor alters any independent rights that consumers have, under other laws, including this article 1, the state constitution, or the United States constitution.

(2) Where more than one controller or processor, or both a controller and a processor, involved in the same processing violates this part 13, the liability shall be allocated among the parties according to principles of comparative fault.

§ 6-1-1311. Enforcement--penalties—repeal

(1)(a) Notwithstanding any other provision of this article 1, the attorney general and district attorneys have exclusive authority to enforce this part 13 by bringing an action in the name of the state or as parens patriae on behalf of persons residing in the state to enforce this part 13 as provided in this article 1, including seeking an injunction to enjoin a violation of this part 13.

(b) Notwithstanding any other provision of this article 1, nothing in this part 13 shall be construed as providing the basis for, or being subject to, a private right of action for violations of this part 13 or any other law.

(c) For purposes only of enforcement of this part 13 by the attorney general or a district attorney, a violation of this part 13 is a deceptive trade practice.

(d) Prior to any enforcement action pursuant to subsection (1)(a) of this section, the attorney general or district attorney must issue a notice of violation to the controller if a cure is deemed possible. If the controller fails to cure the violation within sixty days after receipt of the notice of violation, an action may be brought pursuant to this section. This subsection (1)(d) is repealed, effective January 1, 2025.

(2) The state treasurer shall credit all receipts from the imposition of civil penalties under this part 13 pursuant to section 24-31-108.

§ 6-1-1312. Preemption--local governments

§ 1798.105. Consumers’ Right to Delete Personal Information

a) A consumer shall have the right to request that a business that collects personal information about the consumer disclose to the consumer the following:

(1) The categories of personal information it has collected about that consumer.

(2) The categories of sources from which the personal information is collected.

(3) The business or commercial purpose for collecting, selling, or sharing personal information.

(4) The categories of third parties to whom the business discloses personal information.

(5) The specific pieces of personal information it has collected about that consumer.

(b) A business that collects personal information about a consumer shall disclose to the consumer, pursuant to subparagraph (B) of paragraph (3) of subdivision (a) of Section 1798.130, the information specified in subdivision (a) upon receipt of a verifiable consumer request from the consumer, provided that a business shall be deemed to be in compliance with paragraphs (1) to (4), inclusive, of subdivision (a) to the extent that the categories of information and the business or commercial purpose for collecting, selling, or sharing personal information it would be required to disclose to the consumer pursuant to paragraphs (1) to (4), inclusive, of subdivision (a) is the same as the information it has disclosed pursuant to paragraphs (1) to (4), inclusive, of subdivision (c).

(c) A business that collects personal information about consumers shall disclose, pursuant to subparagraph (B) of paragraph (5) of subdivision (a) of Section 1798.130:

(1) The categories of personal information it has collected about consumers.

(2) The categories of sources from which the personal information is collected.