Beware: The CCPA is not just for “consumers”
Don’t be too quick to decide that the California Consumer Privacy Act (CCPA) doesn’t apply to your small business funding company. It almost certainly does if you possess any non-public information of a California resident.
There has been plenty of buzz about the CCPA since its enactment in 2018. In the small business finance industry, many are quick to assume that any “consumer” laws or regulations won’t impact commercial funders. However, the CCPA is a major exception to this general rule. The CCPA broadly defines a “consumer” as any “natural person who is a California resident, as defined [by]
- Every individual who is in California for other than a temporary or transitory purpose
- Every individual who is domiciled in California who is outside California for a temporary or transitory purpose
Accordingly, the CCPA applies to every California resident, whether or not the relationship with the business is commercial or consumer, so long as personal information
- It has annual gross revenues in excess of $25 million.
- It, alone or in combination, annually buys, receives for the business’ commercial purposes, sells or shares for commercial purposes, the personal information of 50,000 or more consumers, households or devices.
- It derives 50 percent or more of its annual revenue from selling consumers’ personal information.
For more information about the CCPA, read an in-depth article here.Download PDF